5 Overlooked Benefits of Outsourced Accounting

Outsourcing is currently a trending approach by many firms (whether small or big), especially accounting firms. There are numerous reasons for this approach, including access to expertise skills, cost efficiency, and scalability. Firms are rapidly moving to outsourcing companies to manage their accounting needs.

Have you ever considered outsourcing your accounting functions? If not, we are here to help! Move forward with the blog and get to know more about this.

Outsourced accounting is about delegating specific accounting tasks to a professional or a company outside the country. These tasks include bookkeeping, audit and assurance, tax preparation, payroll processing, billing, and compliance.

How does the process of outsourced accounting staff work?

For outsourced accounting services, a firm owner partners with a company providing outsourcing accounting staff. The company then presents a qualified candidate suitable for the role. The firm owner has an opportunity to hire an offshore candidate by screening and interviewing. 

In summary, you can now delegate your day-to-day time-taking work and responsibilities to offshore or outsource team members. This can save you from the hassle. 

Benefits of Outsourcing Accounting Staff

1. Expertise & Specialized Skills:

Not having a team of experts for your accounting department leads to trial and error, concluding issues like debt and losses. Outsourced accountants help you resolve this issue. 

When you hire outsourced accountants, you get relief from many burdens amidst busy tax seasons or simply while managing accounts. The outsourced accountant helps you make your firm's accounting part much more accessible with its specialized skills, knowledge, and expertise in the same field, which has accumulated over the years.

Outsourcing for your accounting firms is an opportunity to have somebody who can professionally handle taxes, manage assets, and even assist you in making crucial decisions for the firm.

2. Detailed and Precise Financial Report:

Opting for an option like outsourced accounting provides you with professionals with high education and experience in accounting tasks like bookkeeping, tax, and more. Their expertise and profound knowledge of accounting principles help you compile, analyze, and interpret detailed and precise financial reports.

It helps fulfill the firm's legal requirements, including taxes, and allows you to understand your firm's financial data and health well.

In simple terms, outsourced accountants enhance transparency and accountability with their comprehensive and accurate financial reports.

3. Reduced Overhead Costs:

Outsourced accounting staffing brings one of the main advantages of reduced overhead costs. If you hire an accountant on payroll, you would be paying full—or part-time wages, payroll taxes, and other expenses. 

On the flip side, outsourcing your accounting requirements provides a straightforward cost without the added expenses for technology and infrastructure. By outsourcing, you avoid the need to furnish office space or supply computer equipment to your team.

Conversely, managing an in-house accounting team entails various costs, from recruitment and training to ongoing upkeep. Outsourcing accounting services can relieve these financial strains, ultimately enhancing profitability and giving you a competitive advantage.

4. Scalability:

Outsourced accounting staff can quickly scale up and down according to your firm's needs. As the firm grows or experiences instability in demand, you can adjust outsourced accounting services without considering staffing constraints. 

Make it more clear by taking an example. If a firm plans to expand, it would require additional services like tax planning, bookkeeping, etc. At this point, outsourcing these accounting services allows firms to scale and grow.

5. Increased Efficiency:

Outsourced accounting services have a notable advantage in increased efficiency for firms. After hiring outsourced accountants, you can focus on other aspects of your firm. You can invest more time in operations, increasing the firm's efficiency and productivity.

Outsourced accountants bring valuable professional skills and extensive experience to efficiently manage key accounting processes for your firm. These essential processes include tax preparation, bookkeeping, and payroll processing.

Conclusion:

Outsourcing is quickly becoming a vital growth strategy for many accounting firms. There are numerous benefits of outsourcing bookkeeping and accounting tasks if a firm is seeking to optimize its financial operations. By leveraging various benefits of accounting services outsourcing, like expertise, specialized skills, cost savings, long-term success, scalability, and efficiency, accounting firms yield significant returns and enhance their overall financial and accounting performance.

Choosing Entigrity as your outsourcing partner can be a beneficial move for accounting and tax firms. The company is a leading offshore staffing provider for accounting firms across the US, UK, and Canada. 

FAQs

Q1: Mention factors that should be considered before outsourcing accounting.

Ans: Outsourced accounting benefits your firm in many ways. However, it is necessary to look at some of the factors before opting for them. These factors include:

• Planning your objectives before assigning the work to an outsourced team.
• Your chosen company should have a proper communication resource so that time zone and distance don't become a hurdle.
• Check the level of expertise and professionalism.
• Data Protection & Security

Q2: When can a firm choose accounting outsourcing?

Ans: Outsourcing is an excellent choice if your firm is looking for flexibility, better productivity, and specialized expertise. Simply saying, the time is always right for outsourcing if you opt for the preferred company. 
Partnering with Entigrity is optimal for all your accounting, tax, and bookkeeping needs.

Q3: Does choosing an outsourced accounting service keep my firm's data safe?

Ans: It all depends on which company you choose for accounting offshoring or outsourcing. Selecting a reliable provider ensures no data breaches and maximum security measures. 
Ensuring maximum data security for accounting firms, Entigrity has 0 data breaches in the last 9 years.

Entigrity™ is a reliable offshore staffing partner for 850+ accounting and CPA firms, 200+ CFOs & businesses across the US, Canada, and the UK. With a flexible and transparent model, the company enables firms of all sizes to acquire skilled accounting, bookkeeping, and tax preparation staff. As a pioneer in offshore accounting, Entigrity ensures precise alignment with the hiring needs of accounting firms, providing staff under your control and management and minimizing concerns about compliance, payroll taxes, overheads, or benefits. Trusted by 45+ of the top 200 US accounting firms, we specialize in supplying highly skilled personnel from India. We have 39 global offices across India. We are GDPR compliant, ISO 27001:2013, and SOC 2 Type II certified. We are now "Great Place to Work Certified™," "KPO Organization of the Year," and "Dream Companies to Work For" among accounting industries. Entigrity is also recognized as a platinum partner by the Institute of Management Accountants (IMA). The company is strategically partnered with Boomer, a BDO Alliance USA and Abacus Alliance member. 
 

Tushar Pansare

Offshoring Strategic Advisor

Tushar is an Offshoring Strategic Advisor for Accounting Firms with 21 years of experience in Business Development, Customer Success, and Client servicing. He has a proven track record of managing key accounts. Tushar is an experienced professional with about 8 years of experience in the North American market with Healthcare IT and Accounting and offshoring industries. He has a team-handling ability and is proficient in leading project development and ensuring compliance with quality standards. He is a team player and a a leader with exemplary analytical and problem-solving skills.