Advantages of outsourced bookkeeping services for IT companies
Start-ups, small companies, and new businesses have lately been creating a lot of hubbub in the market. Hiring a suitable accountant for your company is becoming difficult with growing competition, outsourcing bookkeeping services is one way to tackle this problem.
IT companies require more skilled and versatile people to prepare their company’s financial statements and manage other things such as outgoing invoices, financial data, and so on. Therefore, finding an eligible and expert accounting and bookkeeping professional for this role at an affordable price, becomes a challenge.
The idea of outsourcing accounting has come as a considerable relief to IT companies.
Although people mostly believe handling accounts should be done in-house, every company does not have the necessary manpower and expertise. Moreover, as the companies start to grow, their staff cannot handle all the financial work smoothly.
Fortunately, companies who have started using outsourced bookkeeping services are more comfortable with not doing their accounting on their own and thus focus on other facets of their business.
What are outsourced accounting and bookkeeping services?
Outsourcing is the means through which your work is performed by an external person instead of a person from the business.
So, when a company has to outsource bookkeeping services, they have to pay an external accounting firm to manage all their accounts instead of hiring an employee with their payroll or managing accounts themselves.
The outsourcing rates vary depending on multiple factors. The common ones are:
- Type and size of the business (including the number of employees)
- Accounting needs of the company (services that need help)
- The annual turnover
- Company’s stage of development
- Company’s location
- The size and quality of the suppliers
Thus, the bigger your business is (employees and turnover), the more specialised, and experienced accounting service your business needs.
Advantages of outsourced bookkeeping services
It is cost effective
An in-house bookkeeping team handling your company’s finance will cost you more than an outsourced bookkeeping service.
Moreover, outsourcing eliminates many costs such as hiring, recruiting costs, agencies, job advertisements for the role, interviews, handling payroll, employee deductions, etc.
Besides, when you work with an external firm, you need not worry about paying for pensions, holidays, sickness, maternity pay, Employer’s National Insurance Contributions, and other costs associated with your staff.
Outsourcing also makes it easy to reduce other business overhead costs. For example, no office space or maintenance is required for the accounting department; hence no payment for accounting software, IT, data backups, etc.
In outsourced bookkeeping services, you pay only for the work you are getting done. They have a stable monthly fee, which is also a budget-friendly procedure.
Outsourcing bookkeeping saves time
A company’s accounts and bookkeeping maintenance consumes a lot of time and decreases focus on the main goals. It takes a lot of time to keep up with recent legislation, manage payrolls, calculate contributions, taxes, etc.
Every business owner will prefer to value his team’s time and money and use it most efficiently. If your team has to spend a lot of time on bookkeeping, it won’t be a profitable move.
Outsourced bookkeeping service helps handle all your accounting with ease and enables you to focus more on your company and team for business and revenue growth.
There are fewer risks of fraud
Maximum frauds reported in a company occur within the accounts department, no matter how much one trusts his team or employees.
Employees are always in a position of trust with all your business’s sensitive information and data. They have access to sensitive information such as the company’s loans, profits, turnovers, personal expenditures, etc. Therefore, they can misuse the inside information for their profit.
It should always be a priority to keep the company’s data and confidential information secure.
Outsourcing bookkeeping services eliminates all these risks of theft and fraud because they have access to only that part of information that you share with them to be entered in their books.
Have access to experts
Outsourced bookkeeping services have expert and experienced people. Additionally, there are people who have expertise in specific fields in accounting and bookkeeping. Hence, you receive the required assistance for your IT Company.
External services manage your business accounting and bookkeeping professionally, accurately, and in a timely manner that yields the best result. Besides, a good outsourced bookkeeping service will also provide other valuable services like professional advice on business growth and strategy, additional benefits, etc.
Wrapping Up
Outsourced bookkeeping services work with clients on an individual basis, thus providing business solutions adapted to your specific requirements and demands. In addition, they have intelligent cloud-based software for IT firms to perform services better and also offer better insight into the financial and business status.
Besides all the advantages discussed above, the most significant benefit you get is peace of mind.