The Benefits & Cons of Outsourcing your Accounting Department
As a SME or small start-up; are you taking up the challenge of doing the accounting part yourself?
The question remains whether it is best to outsource the accounting function or not?
Let us weigh up the pro’s and con’s:
Pro’s
- Accounting function can be time consuming which can hinder your focus on your main business.
- Outsourcing your accounting of your business results in cost savings on equipment and software essential for accounting and bookkeeping as well as cost savings on monthly compensation packages and salaries.
- Access to expertise and industry experience which you will not find with inhouse bookkeeping staff.
- Efficiency – accounting outsourcing improves your company’s finance management. Errors, mistakes, omissions, and oversight in handling your financial documents can be avoided. Financial function is done with more accuracy.
- Accountants are up to date re the latest industry regulations and developments.
- Strong internal controls. The risk of fraud and manipulated books is much lower.
- Tax and payroll services always part of the service offering.
The few con’s
- Lesser control. Communication and finance related questions might be difficult to handle when not having an in-house accountant, however this issue can be resolved when policies and procedures are set out during the start of the relationship with your outsource accountant.
- Watch out for unreliable outsourced accountants for hidden costs disguised in additional tasks. Settle the cost of service early with your accounting partner.
- Be meticulous in your hiring process to be able to ensure that you get the services you need without compromising the financial state of your company.
The best outsourced accounting services will help you manage your company to be able to realise its full potential.
Want to get a professional opinion before commit to outsourcing? Let’s connect! Our professional team will happily assist and answer your queries.
