Today, accounting as a profession has become more diverse than ever. The accounting services domain as a whole has experienced immense developments in the recent past. This has given rise to a constant flow of new business ideas and growth strategies. In a time like this, practitioners are faced with the challenge of creating a competitive edge and a differentiated strategy for consistent business growth. In this article, we discuss ideas around in-house versus outsourced accounting. Additionally, the article also shares thoughts on which one is adequate for your practice.
Each accounting firm is different in the way they operate. However, the concerns they are faced with are more or less the same. Collectively, accounting professionals thrive towards two key goals- reducing costs and maximising growth. A common solution towards achieving both these goals is outsourced accounting services. Broadly, outsourced accounting services refers to working with a third party services provider to look after all your accounting operations.
Outsourced accounting services has received much attention in recent times. Independent practitioners as well as accounting firms of all sizes have turned to outsourced accounting services at some point during their practices. There are certain dilemmas for accounting professionals when deciding between an in-house team vs. an outsourced accounting services provider. Here are a few compelling reasons for you to consider outsourced accounting services vs. an in-house team which will work constructively in growing your practice.
Employing an in-house accounting team is an expensive affair. It ensues hiring costs, remuneration, benefits and on-boarding costs. On the contrary, working with an outsourced accounting services partner will immediately remove all these costs. Additionally, working with an outsourced accounting services partner will have all the necessary infrastructure in place to best cater to your requirements. What this means for your practice, is significant cost savings in setting up and running an in-house accounts management team. Moving on, not having to manage an accounting team will also result in a lot of time which can be utilised to drive core business functions.
In a rapidly evolving business landscape agility will be a key factor for accounting practices to flourish. Agility will hold a rather distinct meaning in the in-house vs. outsourcing discussion. As a business owner there will be a necessity of monitoring each business function to keep everything in check. However, when the clientele expands accountants will need to align to the changing priorities. Outsourced accounting services provider will add the flexibility required for growth and increase your true growth potential. An added advantage of working with an external expert will also allow you to scale up or down based on your business needs.
Consequently, with an outsourced team you have the option to pay only for what you need. Outsourced accounting services providers provide diverse engagement plans which allows you to streamline your workforce requirements. For instance, you might choose a specific engagement plan which comprises of bookkeeping, processing payroll and more. Then, if there is a need for filing VAT returns, you can avail the same outside of the conventional services and pay for the availed requirements.
Access to expertise:
When you collaborate with an outsourced accounting team, you have a team of professionals with proven expertise across a diverse set of accounting practices. An in-house team simply won’t be able to match the many years of experience that an outsourced accounting team will have to offer. In addition to that, an established outsourcing services professional will have the best-in-class technical facilities to cater to an ever-growing accounting practise. A lot of accounting is facilitated through software tools. Expert accounting outsourcing firms work with the most advanced software. Availing the same level of set-up for an in-house team will result in maximised costs. Additionally, the training and retention costs incurred to match the level of expertise being offered will also add to the overhead costs.
No down time:
Accounting has become increasingly data-driven, availability of most relevant and timely data is required to make proactive business decisions. In-house teams will have challenges around hours of availability and a limit to productive work. On the other hand, an outsourced team in India will operate for extended hours merely because of a time-zone advantage. This will have excellent turn-around-times and will prove to be quite beneficial when you are expanding your clientele and growing your firm. Furthermore, an outsourced accounting team will always be a call away should you need assistance or financial information. In contrast, an in-house team member might be on a day off which will slow down the reaction times to make important business decisions.
Accounting management practices are one of the most complex business functions. It is significantly data-driven and demands exceptional attention to detail. Even a little delay or misrepresentation of data might result into consequences such as penalties and legal challenges. Effective monitoring and reporting of business performance indicators are essential to foresee challenges and devising strategies to navigate through them. Working with a noted outsourced team will help your practise to keep up with the most updated legal requirements and minimise business risks. Additionally, an outsourced team will also look after compliances and changing government policies in an effort to safeguard your business from possible penalties and legal action.
To summarise, there are actionable advantages while addressing the in-house vs. outsourcing debate. In addition to that, outsourcing your accounts team will enable your practise to achieve the predetermined goals of reducing costs and maximising growth. Outsourced accounting practices will significantly reduce overheads and help you gain a competitive edge in the long run.
Why not get in touch with us to arrange a discovery call to know how to propel your practise towards consistent growth and maximised business excellence?