An Overview Of Outsourced Accounting Services

Over the last couple of years, outsourcing of accounting and bookkeeping function has had a rise of popularity among businesses. Besides the fact that it has a number of advantages, digitalization of work teams is more of a trend as the teams are moving to digital solutions. This article is going to explain the what an outsourced accounting service is, it will list some advantages and who needs this service.

What Is Outsourced Accounting Services?

Outsourcing accounting services implies contracting an entity external to the company, to handle the accounting and finance operations. These outsourced accountants execute a wide range of accounting functions which include bookkeeping, payroll processing, preparation of financial statements, management accounting, dealing with tax matters, account payable and receivable, collection of debts and other associated accounting services.

Outsourced Accounting Services Benefits

Outsourcing to a professional accounting firm can have many helpful advantages. Some benefits are as follows:

Cost Saving

Hiring someone internally is usually more expensive than hiring a third party for your accounting needs. When other costs like office rent, insurance, and days off are attached, hiring in-house accountants can be an expensive factor. On the other hand, hiring an accounting company gives you access to the whole pool of talents with distinct skills (instead of an employee who can do only one thing at a time). 

Expertise

The outsourcing of your accounting will benefit you in the long run, not only with the reduced costs but also with the optimal results you will get with it. If you run a business that is not centered on accounting, there is a high possibility that you are not an experienced accountant. Working together with a certified public accountant gives you a chance to engage with professionals who are particularly cherished for the depth of their accounting knowledge. Thus, you can have your books properly maintained, the workers compensated to the scheduled time of payroll processing and a minimum chance of any errors or penalties from the regulators. A reputable accounting firm will do the task right and at a reasonable price.

Time Saving

If you outsource your accounting work to professionals, you will be able to have more time on focusing your mission and vision development instead of spending all your time on financial functions and preparing financial statements. FastLane can provide you assistance with reporting and presenting to your management with all the important information in one place.

One of the most crucial things that nearly all companies struggle with is the high level of rules they have to follow. FastLane can help you to eliminate the complexities associated with the various government requirements but also help to make effective the overall time and efforts for the regulatory authorities.

Productivity Improve

When you have your finance team that you can trust you will feel secure because all your financial responsibilities will be handled by professionals. Additionally, you will have insightful financial reports of your venture, cash position, forecast, actual and budget status, and more.

Expand Seamlessly

Having an outsourced accounting service will certainly make all your managing jobs easy if your company is expanding. Accounting procedure can be confusing, therefore the more you scale up, the more tangled and overwhelming it can get. Hiring a professional accounting service like FastLane can put you in contact with a seasoned company that has completed this task numerous times.

Digitalize and Cloud

Have an outsourced accounting team so that your business gets access to the accounting software and systems the team uses (Xero) for streamlined processes and task automation. Additionally, you’ll be part of doing good for the environment by going digital and therefore reducing the amount of time wasted and less paper used. This will cut inventory costs, save time, and avoid the need for storage and filing.

With accounting outsourcing, you have the chance to save cash and get better and improved results at the same time.

Who Needs Outsourced Accounting Services?

In the past, businesses used outsourced accounting only when they reach the size of big corporations. However, thanks to the development of technology and the whole world acquiring a clue about remote workers, it now is possible even for smaller businesses and organizations to implement this model.

SMEs

The business owner whose needs are not more than a part-time accountant and chief financial officer (CFO), but someone higher than the office manager, bookkeeper, or the other administrative worker.

The organizations struggle to find suitable candidates

An organization of any kind, big or small, having a difficult time budgeting for a well-compensated, full-time employee. For the same reason every time your accountant leaves, you have to hire, train, and hope they are professional so by outsourcing accounting services to accountants you will not have this problem anymore.

Companies that are expanding

Companies that have grown and, thus want to expand their operations including their accounting or financial capabilities. 

Charities and non-profits

Finding a skilled financial practitioner for a non-profit organization can sometimes be challenging. The management of accounts in the not-for-profit sector is one of our skilled areas in which our experts have deep experience in Managing Donations and Tax-Deductible Receipts, Recording and Acquitting of Programs, Managing Grant Funding, and Annual Reporting obligations with various Regulatory Bodies.

Those Who Need Temporary Help

A small business owner or anyone who usually does not require full-time replacement of employees but needs temporary assistance such as during a staff member’s absence, an accounting audit, or end-of-year reporting.

Anyone!

Outsourcing is a great choice not just for those who have a small shop with 5 employees but also for those who have a huge company with 500 employees, every business, no matter what size, has compliance, payroll, and reporting requirements. The sooner you begin outsourcing, the faster you will enjoy the benefits.

It does not matter whether your firm employs 5 or 500 people. Their requirements are similar. Should you have some questions, talk to our experts and we will assist you.

The Most Common Mistakes People Make When Outsourcing

When outsourcing their accounting department, people frequently make the following three mistakes:

Selecting a company that is not value-aligned

It’s essential to find someone who is on the same page as you when it comes to values. The team cannot grow in length unless all team members share a vision and values. At FastLane, we are equally excited about leaving a lasting impression. Our genuine enthusiasm lies in changing the world while accounting and finance are our areas of expertise. In addition to receiving the greatest service and outcomes, when you engage with us, you will be working with a company that shares your values.

Selecting Someone Who Doesn’t Understand Your Business

Outsourcing accounting can be a headache because often the recognized need just doesn’t appear right away. Yes, accountants can allow you to move and do whatever you ask, but they don’t look at what is best for you in the long run. Identification of the right partner is key, and your potential partner should be able to comprehend and grasp the essence of your business. In breakthrough, our thorough discovery phase allows us to familiarise with the demands and, in result, offer all solutions for free during the first visit.

Outsourced accountants: What to do before you hire one

Once you have decided to outsource, make a list of the support and services you require to be provided (e.g. bookkeeping services, reporting, tax returns, monitoring of transaction charges, etc.). You should also note down your goals such as improvement of cash flow, better visibility of finance and balance sheets, etc.  At FastLane, we include you in the process and give you recommendations that fit your goals, with a unique package that matches your specific needs.

How FastLane Group Can Help?

Our CPA-qualified accountants could help you save time, save money, and grow your business by using the leading business accounting software that will help your organization succeed. We are a professional accounting service that provides personalized service and the convenience of having the ultimate outsourced services with an all-in-one accounting solution. Contact us!