Accounting service providers agree that outsourcing for accountant services is a great way to save money and improve efficiency and bottom lines. By optimizing the use of resources, outsourcing can even help you scale your practice, without incurring additional overheads.
The recent pandemic has further renewed the confidence of practicing accountants in outsourced services, especially bookkeeping and accounting. Surveys reveal outsourcing statistics:
A recent survey by Deloitte reveals that
- 78% of those who participated in the survey were positive about outsourcing some of their services to a third party.
- 71% of the financial service providers resort to outsourcing.
In-house vs outsourced accounting services
Small and medium accounting firms struggle to keep afloat as they compete not just with other small firms, but also face competition from large accounting companies in the global economy. As such, every penny saved in its operational costs will contribute to improving its bottom line. The current pandemic has further worsened the situation for small and medium accounting firms, making it utmost necessary for them to optimize their costs to sustain. Here’s why outsourced bookkeeping and accounting services enjoy an edge over having an in-house department.
Pay only for the services used
As businesses are fraught with volatility, especially in the pandemic situation, it is also reflected in accounting firms. Having an in-house infrastructure entails fixed and recurring monthly expenses. You will need to pay salaries, bonuses, medical expenses, and other benefits to your in-house bookkeeping employees. In addition, you will need capital outlay for infrastructure, systems, and maintenance, which can drain your finances. As against this, your outsourced bookkeeping and accounting service partner will charge you only for the services used. This proves to be cost-effective.
Trained and experienced team
In the case of in-house bookkeepers, you need to hire and train the employees. Again, if an employee leaves the job, you need to find a replacement and incur costs in hiring and training them as per your business needs.
In the case of outsourcing, your work is entrusted to an experienced and skilled team. They are experts in accounting and preparing financial statements. Since they handle accounting and financial reporting day in and day out, they have up-to-date knowledge of the latest development and changes in accounting standards and procedures.
In addition, they also keep pace with the latest technology. An outsourcing bookkeeping and accounting partner can ensure a seamless experience.
Scale your practice
With bookkeeping and accounting functions outsourced, you can scale your practice to serve more clients. A reputed outsourcing accounting firm can offer benefits like faster turnaround times, error-free bookkeeping, and financial reporting.
It is obvious from the above that when comparing in-house vs outsourced services for bookkeeping and accounting, outsourcing accounting work is advantageous.
Who should opt for outsourcing bookkeeping and accounting work?
You should seek an outsourced accounting partner if you:
- Are overwhelmed keeping pace with the changing requirements of accounting standards and practices.
- Spending more time in bookkeeping and maintaining records instead of focusing on client acquisition, retention, and improving client experience.
- Are tired of hiring and training new employees now and then
- Want to improve cost efficiencies and bottom line
- Understand the importance of leading software such as Xero, Quickbooks, but do not have the budget to invest in the software nor have the expertise to use the software.
Acobloom International is a leading outsourced bookkeeping and accounting partner for outsourcing for UK firms. We have a team of experienced qualified accountants with expertise in UK and US accounting practices and procedures. We are your ‘go-to’ partner for outsourcing your accounting work. With our outsourcing services, we assure you of compliance so that you can focus on core functions such as consulting and advisory business and deliver a rich customer experience.