Are you tired of watching your team get bogged down in endless spreadsheets and financial reports? What if you could transform that drudgery into a strategic advantage? Outsourced accounting services can help you make that shift, freeing your staff to focus on what really drives business growth.
Small and mid-sized businesses often find themselves mired in the minutiae of financial management. Bookkeeping, payroll, and compliance are essential but time-consuming tasks that can distract from core business objectives. In today’s challenging economic climate, where margins are squeezed and efficiency is paramount, it’s crucial for you to optimize every aspect of your operations.
What is Outsourced Accounting?
This refers to the practice of hiring an external, third-party company of professional to manage the financial operations of a business. Some companies have found that offshoring minor roles in accounting has not only made operations more efficient, but they also saved a lot on staffing costs.
Outsourced accounting can include services like bookkeeping, accounts payable and receivable, financial reporting, and more. Outsourcing accounting allows businesses to access specialized expertise without the need for in-house recruitment, reducing costs, and freeing up resources to focus on the core business.
There are two ways you can do this:
1. Hiring Full-Time Accounting Experts Offshore
Building a team of full-time remote accountants can be challenging but with good offshore staffing service providers, like Agility, this is now simpler than you think. These accounting experts, typically CPAs and well-versed with accounting tools, can provide consistent financial oversight and strategic insights. Working with a good staffing provider, you can have an appointed manager who can look over your dedicated team. Thus, with your guidance, they can deeply integrate with your operations and understand your financial landscape, which facilitates informed decision-making and enhances collaboration across departments. Note that hiring onshore accountants comes with higher fixed costs, including salary, benefits, and office space leasing. Offshore remote teams cost a lot less usually because the cost of living is lower where these educated and experienced professionals are from.
2. Using Fractional Accounting Services
Fractional accounting services offer a flexible alternative to hiring full-time accountants. Hiring onshore accountings can strain your budget, especially during periods of low demand. By getting the services of CPA-led offshore accounting experts that can be paid by the hour, you can access specialized services without the overhead costs associated with full-time employment. This allows your business to scale your accounting resources according to your needs, whether it’s managing peak tax periods or handling specific financial projects. Unlike hiring full-time accountants, fractional accounting services do not require long-term commitments or benefits packages, a true cost-effective solution. This flexibility is appealing in today’s economic climate, where adaptability is key to survival or success.
Is Inefficiency Making You Fall Behind?
Did you know that businesses are said to spend an average of 120 hours annually on bookkeeping alone? That’s three entire workweeks lost to tasks that could be offshored for a fraction of the cost. Imagine what your team could achieve with that time—whether it’s landing new clients, innovating products, or simply enjoying a better work-life balance.
The thing is, your competitors are already leveraging outsources accounting services to streamline their operations and cut costs. Are you falling behind by clinging to outdated in-house processes? This is one instance where the fear of missing out (FOMO, as the kids call it) could jumpstart you adapting this winning strategy.
How Does Outsourced Accounting Work?
This isn’t just about saving money—it’s about unlocking your growth potential. Let’s say you outsource your bookkeeping to a managed offshore team, here’s what you get:
- Cost Savings: Reduce staffing expenses by up to 70%. The higher the role, the more the savings. Eliminate the need for full-time staff benefits and office space.
- Expertise on Demand: Access to skilled accountants without the hassle of recruitment.
- Focus on Growth: Let experts handle menial tasks while you concentrate on strategy.
- Scalability: Whether you are surviving or expanding, outsourced accounting services adapts to your needs.
Offshoring Risks Addressed
You might be thinking, “This sounds great, but what about the risks?” Common concerns include data security, communication gaps, and hidden costs. The good news? These challenges are easily mitigated by choosing the right partner that has a proven track record and with transparent processes. Let’s address the concerns:
Data Security
Offshore staffing providers have robust security systems and advanced encryption to protect sensitive information; this is true because it is demanded of them and rightly so. There are the gems in the industry: Offshore providers that are ISO certified and even go through things like HIPAA /HiTECH compliance, especially for those dealing with patients and Protected Health Information (PHI).
Communications Gap
You’d be surprised that offshore remote workers, especially from places like the Philippines where English is a second language taught in school to young children, can communicate very well. Sure, they may have a slight lilt to their speech, but their accent is widely comprehensible. Here’s a sample. You can always ask the vendor for their voice work to ensure communication will not be a problem. Having a manager or a CPA Lead also assures seamless work between you and your offshore accounting team.
Hidden Costs
If you find a provider with good track record, chances are they can walk you through the process and be transparent about costs. Offshore remote staffing companies like Agility put a premium on transparency, especially when it comes to costs. It is advisable to do a consultancy call where you can gauge if the vendor is open to answering all your questions, especially about costs. These calls are usually free of charge and no-commitment.
So, here’s what we heard. It is said that 82% of businesses fail due to poor cash flow management. Don’t be part of that statistic. Unlock hidden efficiencies within your own teams with outsourced accountancy services. Elevate your business within your market by focusing on growth—not paperwork.
The time to act is now. Contact us and learn how our outsourced bookkeeping and accounting services can revolutionize the way you work. Save time, money, and sanity and transform your business operations today!