Say goodbye to the hassle of training and retraining bookkeeping resources
With advances in technology and changes in the business landscape, businesses are re-evaluating which functions of their organization will benefit from in-house resources and which will not. After all, people are one of the biggest investments that companies spend in terms of cost and time. Managing people involves incurring various costs that can bog down the company. Managers believe that they have more process control when they have dedicated bookkeeping resources in-house even when that is not the case. They also often fail to see the lack of productive output, lack of exposure to cross-industry expertise and other consequences of this mindset. In this blog, we will explore the hidden and visible costs of in-house accounting resources and how you can overcome these challenges.
Revenue traps from recruiting to training to retraining
There is a significant investment of time that is involved in hiring an in-house accountant and it begins even before recruitment. It starts right from devising the recruitment strategy, which takes up precious man-hours for your HR, accounting department, supervisors and CFO. Short-listing and interviewing the candidates and conducting background checks also divert time away from important tasks.
Once recruited, there will be a significant learning curve. There will be industry-specific, project-specific and other specialized information that they will require familiarization on. Today’s businesses use a wide variety of accounting software platforms. The onboarding process, therefore, demands a period of software training too. On-the-job training will have to be undertaken by supervisors and senior employees, triggering a cascading effect of reduced productivity. It can take between weeks and months for an employee to get fully trained and comfortable to deliver to their fullest potential.
While the resource is in the onboarding stage, they are losing money for the company. It is only after a substantial period that the company reaches a break-even point. This problem is exacerbated if most of the resource’s work is not on revenue-generating work. After spending considerable time and money on hiring and training an employee, they may choose to leave your organization for various reasons. This leaves the company back at square one, and employee retraining can be even more expensive.
Accounting definitions and terms for small businesses
Taking advantage of outsourced teams
In-house employees may not work optimally throughout the day, which means you will be paying for man-hours that are not utilized productively in improving your bottom line. By investing in outsourced teams instead, you can drive down your accounting costs by 50% while improving scalability, efficiency and accuracy.
With Finsmart’s Accounting Seat , you are leveraging cross-industry expertise in accounting. Our teams have a vast amount of knowledge gleaned from working with various companies. They are exposed to the latest trends and technology and trained on an on-going basis. If new developments arise in the broader accounting and financial realm, our resources would have already undergone training on the same and would be immediately deployable on tasks that require the updated skills.
With Accounting Seat, you need to conduct training processes only once. There will be no need for retraining ever again. Knowledge transfers will happen internally on our end with no support required from you. Our teams are well-versed in a wide range of accounting software platforms which means time required from your organization on software training sessions will most likely be non-existent, or minimal if at all.
With our Accounting Seat Subscription model, you can downsize or upsize your accounting function as per your needs without worrying over personnel-carrying costs, and have access to resources with higher expertise and cross-industry knowledge.
Making the switch
Many companies do not identify the hidden costs and opportunity costs of hiring in-house accounting resources. They are bogged down with personnel-carrying costs and training procedures that cost the company dearly in the long run. They also fail to identify the streamlined processes, technology expertise and other strengths that outsourced teams can bring. Leveraging outsourced accounting teams needs to be viewed not just from a cost-saving perspective but also from the perspective of accessing superior expertise and dynamic capabilities.
If you want to know more about how we have helped companies improve their productivity and drive down costs with our Accounting Seat, click here.
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