The finance and accounting functions of a business are complicated yet critical. While one can always hire an in-house accountant, another option to consider is to outsource the finance and accounting functions.
A specialized accounting outsourcing firm can give you back time and peace of mind by taking care of such back office functions as finance and accounting so you can focus on growing your business. It also allows you to enjoy benefits including cost savings, security and confidentiality, access to the latest tech tools, among other features.
Take a look at 10 key benefits your business will enjoy by shifting to outsourcing:
Significant cost savings
– According to salary.com, the average salary for a CFO in the U.S. is $399,879, as of December 27, 2021. By outsourcing, you get access to CPAs, chartered accountants and expert accountants at a much lower cost, without compromising on quality. You also get to save on employment taxes, infrastructure fees and other overhead costs.
Enhanced data security
– Outsourced finance and accounting services firms can put measures in place to handle the serious data security threats that exist, and they typically invest in robust, impenetrable and expensive security systems. This can help mitigate the odds of compromised security programs and data breaches.
Flexibility and scalability
– By outsourcing to a company that specializes in finance and accounting services, you can avail a solution that is customized based on your requirements. You can also scale up or down the financial and accounting processes as per your requirements.
Stay abreast of the latest policies
– A specialized finance and accounting outsourcing company will always stay updated with the latest compliance and financial policies and other accounting rules.
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Access to latest tech
– A financial outsourcing company invests in cutting-edge technology and software to stay competitive. In addition, if finance is not your primary function, then taking on this type of investment by yourself makes no sense. When you work with an outsourcing partner, you have access to the latest technology for no additional cost.
Reduced fraud
– While fraud can never be ruled out completely, a dedicated team with expertise in accounting best practices keeping an eye on every transaction is far more likely to spot an anomaly than someone whose focus is on building sales and growing a company.
Round-the-clock service
– When you outsource your accounting and financial functions to a third party, you can keep your company operations running 24/7 with a time-zone advantage. You can rest assured that all major tasks will be completed according to schedule and on time.
Protection in down economic times
– As situations change economically, companies tend to change their workforce, which can be a challenging and resource-intensive process. This has been apparent in the last two years of the COVID-19 pandemic. But since the responsibility of managing the talent assigned to a project lies with the outsourcing company, you do not have to make any decisions regarding its internal workforce or pay to retain employees.
Security and confidentiality
– Because finance and accounting are their core products, a finance and accounting services partner ensures that your information remains confidential and secure. You can ask them to sign a non-disclosure agreement for your peace of mind.
Focus on core activities
– Having reliable back-office support allows you to focus on tasks that generate revenue, such as business development and strategic decision making.
Want more?
Escalon has helped over 5,000 companies across a range of industries to optimize routine business functions, like accounting and HR.
