The best part of outsourcing accounting practice is that anyone can do it. No matter what your reasons are, if you have built a competent outsourcing team of experts who understand your business needs, you have made the right choice.
But here’s the problem! Most firms, before outsourcing, come with a rigid mindset that the purpose of outsourcing is solely to reduce costs. But just like the hidden benefit of eating a certain fruit or vegetable, the perks of outsourcing have many layers. If an accounting firm simply treats its outsourcing partner as a means to get their work done at a cheaper cost, they are doing it for the wrong reasons.
The finance and accounting outsourcing market is expected to have a steady growth of 11-13% as businesses continue to look at it as a scalable solution.
If you are still unsure of whether outsourcing is the right choice for you, these are some of the reasons (beyond cost savings) that will compel you to rethink.
Find your reason to outsource:
Get access to specialized knowledge and expertise:
One of the biggest challenges in the accounting industry today is that there is a dearth of skilled resources. This is especially the case in the US. But if you are into accounting business, you need people – and the right ones. As businesses grow, accounting needs become complex. Without teams possessing the knowledge of tax strategy, compliance, auditing, financial forecasting, etc, it is impossible to scale and be at par with the industry standards.
When you outsource, you hire a team of professionals with specialized knowledge in these aspects. Outsourcing helps you ensure that you do not have to look for people who make your lives easy constantly. All you need to do is, tell your outsourcing teams what you need.
Better accuracy and improved risks:
Running a business, especially one where you are constantly expected to crunch numbers, is hard. Having an overwhelmed team, with little experience and expertise often ends up making inaccurate financial reporting, errors in tax filing, etc. If you want to build an in-house team, capable of doing it all by themselves, you need to spend a lot of time and money to train them. Firms lack either or both of these. The small errors can be pent up, leading to penalties, legal complications, and reputational damage.
When you outsource, two things happen – you get access to teams who are focused on these individual tasks, and you get access to software and tools that automatically reduce the chances of manual errors. When you partner with firms like Finsmart Accounting, you also get access to a team of reviewers who act as an additional layer against such errors.
Become scalable and flexible:
One of the common goals of all accounting firms is to grow. Whether it’s managing clients in different locations, handling acquisitions, or dealing with overseas clients, firms will become stagnant if they fail to scale. While the goals of scaling may vary, firms can accommodate it all with outsourcing.
Outsourcing allows firms to scale their accounting operations without the need to constantly hire or train new employees. You should be able to scale up or down seamlessly when you are growing. Outsourcing makes it possible. With the right partner, you pay only for the hours and resources you have utilized. Outsourcing also makes you flexible by increasing the services that you can provide and the team sizes you need.
Get better data security:
While technology has been an immense boon to the world, it also poses serious threats to accounting firms. Cybersecurity concerns are on the rise and financial information security has become a top priority for many organizations. Firms might have several concerns about the data security of outsourcing partners.
But here is the thing. Outsourcing firms deal with several clients of all sizes. Protecting their data at all costs is their topmost priority. With secure systems and processes in place, coupled with strict adherence to global data security standards, outsourcing partners are better guards of your clients’ financial data. They are also equipped to act fast and right if there is a data breach, making all your information safe and secure.
Make your processes streamlined for better decision-making:
Are you constantly multitasking? Do you often lose track of the processes? This could be because your processes aren’t streamlined. Outsourcing accounting tasks to professional teams means quick turnaround times for financial reports, audits, tax filings, etc. These streamlined processes can help your business become faster, and data-driven, giving a competitive edge.
Outsourcing partners like Finsmart Accounting curates unique approach as per the clients’ needs at all levels of the partnership. Whether it is a simple task like bookkeeping or more complex processes like financial forecasting and audits – streamline your processes as per the situation.
Why Finsmart Accounting is the right choice for holistic business growth?
If you are looking for a partner that goes beyond cost-saving, Finsmart Accounting is the solution. Our comprehensive services, including accounting, bookkeeping, monthly closures, tax preparation, auditing, and CFO solutions, cater to firms of all sizes. We have catered to over 70 firms to outsource their accounting operations efficiently and securely for the first time. With Finsmart Accounting, you get:
- Plug-and-Play Solutions: Our flexible, ready-to-implement solutions integrate smoothly with your existing systems, making it easier for businesses to transition to outsourced accounting without disruptions.
- English-Speaking Teams: Communication is key to a successful partnership. Our team of professionals is proficient in English, ensuring smooth communication with international clients.
- Confidentiality and Data Protection: Our stringent data protection protocols help ensure the highest levels of confidentiality and security for your financial information.
- Customizable Engagement Models: With 17+ years of experience in accounting outsourcing, we understand the unique needs of our clients. Finsmart offers tailored engagement models that fit businesses’ unique needs, whether it’s hourly seats or dedicated teams for ongoing projects.
Want to know more about how we provide holistic solutions for your accounting needs? Write to us at connect@finsmartaccounting.com.
Director Growth Strategy & Alliance
Maanoj Shah is a finance and outsourcing expert with strong Business Strategy and Scaling-up experience. Over the last 20 years, he has incubated multiple businesses and helped build global enterprises in verticals as diversified as hospitality, technology, and healthcare.
