97% of Chief Financial Officers (CFOs) have to sacrifice their sleep to deliver financial reports in time, said a 2017
survey of CFOs in over 23 countries. In 2019, Deloitte reported that CFOs are spending up to 15 hours doing manual financial work.
If this is the situation, expect to have overworked financial professionals and rushed, erroneous decision making. Remember you still have to pay salaries, overtime, and benefits; which eats more into your business.
As a business, you can avoid all these through outsourcing. So, what is outsourcing, and how do you choose
the best accounting outsourcing firms?
What is outsourced accounting?
Outsourced accounting is a service that you can hire from a professional accounting firm. You get a full-time accounting department to handle all your accounting affairs.
What are the benefits?
rnWhen you outsource accounting, you will enjoy:
1.Professional services with no errors or late deliveries.
2.More time to concentrate on core business.
3.Cost savings
Research has estimated that you can save up to 40% of costs that you would have spent on the latest technology, salaries and benefits, and other structural changes that come with employing a full-time employee.
4.Limited fraud
Many small businesses lack basic accounting controls which exposes them to fraud.
The most common types of fraud in small businesses involve payroll fraud which affects 54% of small businesses, cash theft, invoicing, and online banking.
Now you ready to outsource your accounting services. How do you find the best accounting outsourcing firms? Here is what to look for:
1.The services offered
If you have decided to outsource, you should consider letting go of all your accounting work instead of only a part of it, to avoid confusion.
You should, therefore hire a company that can take over your entire accounting work from basic bookkeeping to complex processes such as tax reporting.
A virtual bookkeeper can help you forget about the day to day hassles of handling receipts and invoices. You can enjoy services such as cash flow management, invoicing clients, entering nominal expenses, sales invoicing, trial balances, bank reconciliations, name it.
A top accounting firm will also be able to prepare your VAT returns, tax returns, payrolls, and annual returns.
2.A respectable track record
Accounting is a very intricate task that you need to hire a partner that you can trust. Checking a company’s track record is a great place to begin. rnLook for records of companies they have worked for and read those testimonials.
You should also consider the number of years a firm has been in business. Most times, that means they have more experience in their field hence better expertise.
3.Certifications
To authenticate the professional level of the firm you want to work with, check their professional qualifications. Check for certifications in the services they offer.
You should also consider other certifications such as ISO
(International Organization for Standardization) and CPAs (Certified Public Accountants).
4.Technology used
Is the accounting firm using the latest software? The output of a company is only as good as its technology.
When you are working with a firm that is using the latest technology, you can be assured of timely and accurate data. rnAdditionally, the technology of the outsourcing firm needs to be compatible with what you have in your business to enable the seamless transfer of reports.
The technology should be accessible in real time for quick decision-making.
5.Software security
When you are working with any company that is handling your data, security is vital.
Accounting firms are a good target for hackers because they harbor lots of data from companies. Type of security threats that they face include hacking, phishing, theft of physical media, unauthorized access by employees, technical errors, malware or viruses, ransomware, among others.
Cyber attacks are rising by the day thanks to technological advancements.
The agency needs to have security measures in place to guard the confidentiality of your information. That includes transferring your reports through highly encrypted lines.rnA good place to start when determining how a firm values security is by looking at its infrastructure. Things like restricted internet and data success, data backup, strong passwords, CCTV surveillance, custom and secure cloud services, among others.
6.Do not only consider the price
The best offer in terms of price isn’t usually the best. You need to weigh all the other factors such as expertise and the range of services offered before you settle.
In conclusion
If you own a small and medium-sized business, you need all the cost savings you can get to help your business break even. You also need to secure valuable company data using the latest software without having to invest in it. Outsourcing accounting services is a sure way to achieve these goals.
The best accounting service firms will understand your needs, secure your data, offer advice, and guide you through the required processes to enhance business productivity. rnFrom eliminating the costs of hiring fulltime accountants to getting accurate and timely services and more time to concentrate on core business, there are more than a few reasons why you should consider outsourcing your accounting services.
Whatever your accounting needs are, why not outsource those services today?