Businesses are increasingly choosing to outsource their accounting and bookkeeping in recent years. With the transition to digital solutions, teams are increasingly working remotely, which has a variety of advantages.
We’ll explain what an outsourced accounting service is, what the advantages are, and who it’s best suited for in this article.
Small firms might benefit from the comprehensive accounting department experience offered by outsourced accounting. An accounting department is responsible for managing many different activities, including accounts payable, accounts receivable, payroll, management financial reporting, and more.
Due to their complete staff of accountants, providers of outsourced accounting are able to offer a small team of accountants at a lesser cost than engaging a full accounting department.
What is Outsourced Accounting?
The accounting function and finance function of an organization are completed when a business hires a third party to handle those tasks.
Outsourced accountants manage all of the company’s financial operations, including bookkeeping, payroll, financial reports, management accounting, tax, accounts payable, accounts receivable, debtor collection, and other services relating to accounts.
What Are The Benefits?
There are many advantages to hiring an outsourced accounting firm, including:
- Reduce costs
It is typically less expensive to use a third party than an internal employee to handle your accounting needs.
When taking into consideration office space, insurance, sick days, and other costs, hiring in-house accountants can be pricey.
- Access knowledge
You can actually save money and get better outcomes by outsourcing your accounting. You probably aren’t a master accountant if you own a business that isn’t an accounting firm.
This ensures that your records are always accurate, that your payroll is accurate and finished on time, and that you are not in danger of fines or regulatory errors. A good company will complete the task correctly and affordably.
- Save time
You can spend more time concentrating on your vision and mission by outsourcing your accounting so that you don’t have to spend as much time managing the company’s financial operations and creating financial statements.
The information you need is all in one place because at Breakthrough, we also help you with reporting and presenting to your board.
- Greater productivity
If your finance team is dependable, you may relax knowing that your accounting duties are being handled. Additionally, you will receive insightful financial reporting information on your cash flow, planning, and business performance.
- Scale up quickly
An outsourced accounting firm will make your life much simpler if your business is expanding. By working with Breakthrough, a seasoned company that has accomplished this numerous times, you will be in good hands.
Outsourced Accounting Is Used By Whom?
Only really large firms outsourced their accounting in the past. But thanks to technical advancements and growing public awareness of remote workers, it is increasingly affordable for smaller businesses and organizations.
For the following, a third-party accounting service is suitable:
- Small companies
A small business owner who needs someone with more abilities than the current office manager, bookkeeper, or administrative staff but does not need a full-time accountant and chief financial officer (CFO).
- Trouble Hiring
a business of any size that is having trouble hiring a full-time worker who is both suitable and reasonably priced.
Additionally, if your accountant goes, you will need to hire, train, and hope that person works; this is not a problem if you outsource to a team of accountants.
- Nonprofits & Charities
A not-for-profit may have trouble getting in touch with knowledgeable financial experts. Breakthrough has extensive experience in not-for-profit accounting and managing grant funding, and annual reporting requirements with various regulatory bodies.
Want To Get Started?
Our CPA-qualified accountants can assist you if you’d want to build your firm while utilizing industry-leading business accounting.
As a customer of Breakthrough Accounting, an established accounting firm, you will benefit from the comfort and dependability of the best possible outsourced service with an all-in-one accounting solution.
