All the companies, small or big, can be benefited from outsourcing their accounting services. But many still believe that there are more negatives to it than positives.
Many firms believe that their data will be at stake if they outsource their accounting needs, while some believe that small outsourcing teams cannot handle large IT data.
In this article, we plan to bust the myths regarding outsourcing accounting services, and we are here to shed light on the truth about outsourced services. You can gain more and even better if you select and verify proper outsourcing firms.
Outsourced Accounting Myths & Facts
So, explore most common myths about outsourced accounting:
Myth 1: It isn’t easy to trust remote accounting firms with data privacy.
Fact:
This will only be true if you don’t verify the outsourcing firm before getting them on board. Nowadays, accounting firms are using cloud-based services to secure your data.
It’s completely foolproof, and you can access your data anytime you want. Most of the accounting firms will sign an agreement with you specifying that your data will be safe.
Myth 2: Only large companies require outsourced accounting and bookkeeping services
Fact:
It’s not true. It’s true that large companies can benefit from remote accounting services, but this applies to small to mid-sized firms too. For example, if you have a bookkeeping expert in the house but no one to deal with taxes, you can hand over the latter service to a remote accounting professional.
You save time and get an utterly specialized team at a low-cost.
Myth 3: Outsourcing requires a high level of IT infrastructure
Fact:
The outsourced accounting team has its own infrastructure, and you need not worry about providing them anything. Most of the remote teams work on automated technologies that you won’t have to buy.
Your data is secured on a cloud-based platform that is impenetrable. All you have to do is introduce your outsourcing team to your company’s working style, and your work ready to go.
Myth 4: Outsourcing and offshoring both are the same
Fact:
That isn’t true at all. Offshoring and outsourcing, even though both can be resourceful, aren’t the same.
Offshoring means a company that’s remotely working from another country. While outsourcing means a country that isn’t a full-time part of your main organization.
While both can be beneficial, offshoring can be really good if the countries’ service rates are low.
Myth 5: Outsourcing teams only be used for the short term.
Fact:
You may have an in-house tax expert, but probably you won’t have someone to take care of your bookkeeping.
The latter service can be given to a remote bookkeeping firm. Bookkeeping is done monthly, whereas tax returns filing is done yearly; you can bring onboard an outsourced bookkeeping firm as a yearly partner.
So, basically …
Don’t believe in the myths that people have about outsourcing accounting processes. Instead, believe in the fact that these firms are experts at a low price and trustworthy if you verify them.
You have a lot to gain from outsourcing your accounting needs than to lose.
Partnering with Finsmart Accounting: Your Strategic Advantage
Our specialty at Finsmart Accounting is enabling CPAs and accounting firms to effectively handle the difficulties of tax season.
Our tailored services include:
- Access to experienced bookkeepers and tax preparers knowledgeable about the U.S. GAAP
- Support in high-volume times, ensuring your deadlines are met without compromising accuracy.
Book a Consultation: https://calendly.com/maanoj-shah/calendar
In this Article
editor
Maanoj Shah is the Co-founder & Director of Growth Strategy & Alliances at Finsmart Accounting, where he pioneered the “Accounting Seat” model—a revolutionary offshore embedded staffing solution purpose-built for Accounting and CPA firms. Widely recognized as an outsourcing and offshoring expert, Maanoj’s insights have been featured in leading accounting publications, and he regularly speaks at premier industry conferences including Scaling New Heights, Bridging the Gap, BKX, and Women Who Count.
A dynamic growth leader with over two decades of experience, Maanoj has incubated, scaled, and exited ventures across Fintech, HR, and Consulting sectors, holding various CXO roles throughout his career. His passion for scaling businesses is matched by his commitment to social impact. He is the Co-founder of Mission ICU, a national healthcare initiative that installs critical care units in underserved areas of India, and was recognized by the World Economic Forum for its last-mile impact.
Outside of work, Maanoj leads an active lifestyle as an avid tennis player and passionate golfer, blending strategy and agility on and off the court.
CONTENT DISCLAIMER
The content in this article is for general information and education purposes only and should not be construed as legal or tax advice. Finsmart Accounting does not warrant or guarantee the accuracy, completeness, adequacy, or currency of the information in the article. You should seek the advice of a competent lawyer or accountant licensed to practise in your jurisdiction for advice on your particular situation.
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