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Advantages Disadvantages of Outsourced Accounting Services VS Hiring -Paysquare PowerPoint Presentation
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Advantages Disadvantages of Outsourced Accounting Services VS Hiring -Paysquare

Advantages Disadvantages of Outsourced Accounting Services VS Hiring -Paysquare

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Advantages Disadvantages of Outsourced Accounting Services VS Hiring -Paysquare

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  1. Advantages Disadvantages of Outsourced Accounting Services VS Hiring -Paysquare In the contemporary scenario, bookkeeping, ​outsourced accounting and controller services are doling out smart and affordable solutions for small and big companies alike. The advantages of opting for outsourced accounting services is undeniable. Along with enterprise and mid-market companies, smaller organizations are also benefitting from the same. These days, it is common to find accounting teams, CEOs, business owners and in-house departments rely on the expertise and skill repositories of third-party accounting service providers. Trained, knowledgeable and highly proficient accounting personnel are making businesses grow faster and better to generate better ROI. Given this and more, it is important to assess and understand the pros and cons of choosing outsourced accounting service providers​​ viz-a-viz hiring a full-fledged internal accounting department.

  2. Why are Outsourced Accounting Services Becoming Popular? The primary factors that influence outsourcing accounting operations are cost savings, need for more focus on core business functions and ease of solving capacity issues. As with other good business decisions, the act would start with the weighing of pros and cons to evaluate whether third-party accounting is the correct option for your organization or not. Pro #1: Cost Effective Hiring ​outsourced accounting services​​ serves to be a cheaper alternative than hiring in-house staff for handling your finance function. By opting to outsource, it is possible to skip the attributed overhead costs incurred while hiring employees. You can do away with in-house accounts department specific costs like health insurance, retirement, PTO, vacation, sick days and workers’ compensation costs. These costs also include the risks pertaining to unreliable and non-compliance financials– especially for startups and small-sized businesses. Additionally, the value of attaining an entire team’s experiences and expertise, rather than that of a single / few internal employee(s) cannot be written off.

  3. Con #1: Hidden Costs may be Present Paid services can snowball into multiples and may end in additional costs that you weren’t even aware of initially. With this in view, it is essential to clarify your month-to-month relationships to minimize the chances of expectations going haywire. Pro #2: A Proactive Approach The main benefit of outsourced accounting teams pertains to allowing businesses to concentrate on the overall vision and growth of the organization itself. These teams are known to adopt a proactive approach wherein they find red flags quite ahead of time. They are capable of spotting and notifying businesses about cash flows and expenditures way in advance, thereby helping them keep a keen eye on their finances. With intelligent financial decisions to bank on, companies need not rely on the results of long-drawn assessments of their in-house accounting teams. Con #2: Lesser Control The proactive feature of outsourced teams also incorporates a caveat – it is not possible for many managers to keep reaching out to the outsourcing agency with regards to every single financial occurrence. Even though outsourced account managers provide weekly updates and monthly reports, a lot of trust is needed to make the outsourced relationship successful. For some business owners, the act of handing over the control of accounts and books may feel uncomfortable. An in-depth onboarding process defining roles, policies, procedures and process sets is essential for clarifying expectations and ensuring timely communication. Pro #3: Lesser Frauds Fraud is common in organizations with one person sitting at the helm of all accounting affairs. This leads to easy manipulation of books wherein fake expenses may go unnoticed for several months or years. Control, transparency and accountability are an order of the day in the case of outsourced accounting services. There are multiple checks and balances in place for all transaction reports and processes to offer increased internal controls. While it is impossible to rule out fraud completely, dedicated accounting teams with specific expertise in various accounting best practices are quite likely to spot the anomalies that may be overlooked by overburdened and work-loaded accounting officers within your company. Con #3: Not Accessible Instantly Employees hired in-house are available at most times to answer questions immediately. On the contrary, the answers may not come through instantly from an outsourced team. It is important that your accounting partners have good communication policies to ensure that your team is easy to reach and always available.

  4. Opt for a Dedicated Outsourced Accounting Services! Outsourced accounting services ​​providers like ​Paysquare​ offer help for all kinds of accounting processes, be it advanced bookkeeping, customized management reporting, controller services or even consulting, if and when required. They always succeed in transforming your finance function to grow your business. Go for accounts outsourcing to manage your finances in better ways!