As a business owner, you are always devising methods in order to grow your business and maximise revenues. Running a business, large or small comes with a host of intricate processes. Some of these processes can have real-time cost constraints and can often cause for you to shift focus from your core business objectives. One such business function is accounting and finances, it is essential and can often take up too much of time. Hence, businesses have been adopting outsourced accounting services. According to the Chartered Institute of Management Accountants, the outsourcing of one or more finance and accounting services is termed as finance and accounting outsourcing (FAO). This article brings forward 10 key reasons so as to why as a business owner one should consider outsourced accounting services.
- Cost Effectiveness:
Outsourcing your accounting services will usually be less costly as opposed to having a dedicated accounting team. It also streamlines supporting business functions such as payroll, taxation etc. It will save costs that would usually be used in hiring, training and maintaining an internal accounting team.
- Drive core Business Functions:
As a business owner, maximising growth should always be the priority. When you have outsourced a part of your business function and are assured that it is in safe hands, you can then concentrate on propelling your core business functions. The saved costs can be utilised in research and development efforts, or maximising your product portfolio, or marketing and advertising. Investing time and effort in an area that is going to drive revenue and ensure growth.
- Access to Superior Expertise:
When you work with an outsourced accounting firm, you get access to that companies’ expertise. Both the business owner and the service provider can work towards forming a long-term strategic partnership in an effort to benefit from superior capabilities, best practices etc. An accounting outsourcing company will bring with it, a host of expert accountants who can be of help when a business faces dilemma in making a financial decision such as expansion or increasing overall cost effectiveness of the business.
- Improve Data Security:
Even when you have an in-house accounting department, you are investing the money and efforts in protecting your data and thee software to build a concrete accounting business process. In contrast, an outsourced accounting services company will already have invested in state-of-the-art data security procedures and software to keep the data safe and easily manageable. In most cases the amount of capital investment required in setting-up the technology will be significantly higher in comparison to what you would pay to an outsourced accounting services firm.
- Improved Decision-Making Abilities:
Accounting information is essential for a business to grow. Making rapid business decisions can often come across as daunting and riddled with risk if the adequate accounting data and information is not available. In a time when business policies are changing every other day, an outsourced accounting services provider will always prove to be beneficial. With the help of them, you can request up-to-date financial and accounting information which will enable you to make crucial business decisions on the fly.
- Minimise Business Risks:
Accounting and financial management is one of the most intricate business functions and needs utmost attention to detail, failing to do so might significantly increase the risk of potential loss or penalties for incorrect practices. Outsourcing your accounting services to a reputed firm with the adequate experience will help you minimise such risks. A noted outsourced accounting services provider will have employed experts in the field which will be looking after your accounting practices and will make sure that your business is always risk-free in the best possible ways as they will have the experts who will constantly be analysing changes in policies and compliances in order to save your company from penalties and litigation.
- Increased Scaling Potential:
As indicated earlier, adequate accounting information is essential to constant growth. With the help of an expert outsourced accounting services company you can stay ahead of the curve when it comes to upscaling your business. Additionally, as a business you can also seek consultation from your accounting services provider to take the right steps towards growth.
- Increased Accuracy:
One of the key advantages of working with an expert outsourced accounting services firm is that it ensures unmatched expertise and accuracy. An outsourced accounting firm will have a robust team and standardised operations in place. This will automatically result in highly accurate business information in terms of cash flow forecasts, payroll process etc.
- Round the Clock Operations:
When you are working with an outsourced accounting services provider especially one who operates in a different time zone you get the benefit of operating round the clock. Even when your offices in your home location are not working, your accounting and relating procedures are still being looked after. This will ensure risk-free real time work processes and will ensure smooth operations.
- Increased Valuation:
Outsourced accounting services will contribute to reduced overhead costs over time, this will be translated into increased profits due to reduced overall operating costs, this will result in increased valuations of your business will work positively when bringing in new clients and/or raising funding from an investor.
How can Initor Global help you get ahead of the curve by outsourcing your Accounting needs?
As mentioned above outsourcing your accounting needs can enable you to harness multiple advantages at the same time. However, choosing the right kind of partner to work with will make all the difference. Outsourcing your accounting needs to a company like Initor Global can help you in achieve your business objectives in the best possible ways. It is important to work with someone Like Initor who has an extensive market presence, the right kind of technological prowess and a commendable workforce.
Write to us to find out more about the kind of work that we do at Initor Global and how we can assist you in managing your business accounts and meet your business objectives by focusing on the core business functions.