Whether you’re a small business or large corporation, you need efficient accounting services to remain compliant with tax laws, correct bookkeeping, and other regulations. The big question is, how do you get the best quality service while at the same time keep costs down? Outsourcing your accounts department to professionals can provide significant benefits for your company.
1. Save Money & Reduce Overhead
According to a recent estimate, outsourcing your accounting work can reduce your business cost by as much as 40%. An outsourced team will eliminate expenses related to training, employee benefits, accounting software, hardware, and office supplies. With an outsourced accounts department, you determine the number of hours in a week and don’t need to pay a full-time employee for hours not worked.
2. Access to Expert Accounting Resources
By outsourcing your accounts department you’ll get access to the best of the best, without having to take on a massive full-time salary. Many in-house accountants (particularly in small businesses) may have a background in accounting but are not master accountants. Having a dedicated team of highly qualified and experienced experts at your disposal ensures that your books are always up to date, and you’re not at risk for penalties due to late payments or inaccurate paperwork. A provider also has access to the latest accounting software and the know-how to use it properly.
Another benefit is that a team typically has a wide range of services, which means you don’t need to hire additional personnel. For example, Fenns Incorporated offers the following financial services:
- Accounting and monthly bookkeeping services
- Tax services
- Financial accounting
- Audit of annual financial statements
- Advisory services
3. More Flexibility
Although you may have the funds to afford a full-time accounts team, there is always the risk you could lose a big customer or the economy takes a dive, causing you to scale back on costs quickly. By outsourcing, you can build flexibility and scalability into your business in times of growth without committing to a full-time employee. There are also typically no upfront placement fees and lengthy contracts with an outsourced team. Should you decide to cancel the contract you won’t have to worry about dealing with issues you typically would with a full-time employee such as unfair dismissals, retrenchments and CCMA battles. This helps your business to adapt more quickly to rising or slowing demand of the economy.
4. Reduce Risk
It can be challenging to enforce a strong checks and balances system without making your employees feel that you don’t trust them, which can lead to reduced company morale. With an outsourced team you have the benefits of a third party to audit your money trail. Your risk of internal fraud will be decreased by having an impartial standard of checks and balances, and this also helps improve compliance.
5. Save Time
Time is the most valuable resource you have. Having a provider to manage your accounting means you can spend less time overseeing financial matters and more time focusing on business goals, development, growth, and doing what you do best – running your business.
The Bottom Line
The bottom line here is that by hiring an outsourced accounting service provider, you save money, time, and stress by having experts handle your financial reporting, leaving you free to spend precious time on running your business.
If you are thinking of restructuring your business to reduce costs and increase efficiency, take a look at the financial and accounting services we offer, and contact Fenns Incorporated today for a free quote.