Top 5 reasons to Outsource your Accounting

AdminAssist September 21, 2020

7-minute read

Outsourcing is one of the most difficult decisions a business can make. Leadership has to determine whether it’s more effective to hire an outside firm to handle the tasks. It’s a delicate cost-benefit analysis that should take time and careful consideration. At a staffing and recruitment agency, there are particular needs that must be met. These businesses need well-organized accounting with customizable reports and the ability to handle commissions.

So as you consider whether outsourced accounting is right for your business, here are some of the benefits that many companies enjoy thanks to outsourcing their invoicing and payroll. From cost savings to growth potential, you could gain powerful advantages with outsourced accounting. Don’t forget to look at the environmental impact of your accounting choice. Not only could you save money by outsourcing your accounting, but you could save the environment, too.

Here are the five main benefits that businesses can expect to enjoy with outsourced accounting.

#1 - Reduce Your Company’s Operating Costs

Rather than retaining a full staff of in-house accountants and HR professionals, you could outsource it to an agency that specializes in these activities. This allows you to save money on salaries, office space, and software costs.

Operating costs are one of the sneakiest ways that companies leak money. Do you really need that second office building? Are six staffed content writers really necessary to get the job done?

It can feel exhausting to think about reviewing your company’s operating costs, but it’s actually a great opportunity to plug any leaks and seek more affordable options. Outsourcing your accounting, invoicing, and payroll is a proven way to reduce operating costs without affecting business as usual.

#2 - Get Investors Onboard with Confident Reporting

When you work with an outside agency, you’re bringing on specialized expertise. You don’t need expert accountants to deliver your software or product to customers. Instead, outsourcing accounting to an outside firm is a great way to prepare to grow your business.

An agency like AdminAssist offers crisp and clean reporting. They handle everything from invoicing to commissions, and they create easy-to-read reports. Having the data at your fingertips is a great way to convince investors that you’re ready to scale.

With clear reports, you know exactly where your business stands. Your team can celebrate their successes thanks to straightforward reporting, and investors will be drooling when you present a comprehensive report about the status of your accounts.

#3 - More Innovation

When your team has more time to devote to improving the company’s business model, your company will become more innovative. Don't waste valuable staff time on accounting. You hired the best and brightest to help your company beat out competitors, not enter data into invoices.

Align your biggest investments with your priorities. Outsource accounting can free up more time to innovate. And innovation is the name of the game in 2020 and beyond.

It’s not enough to simply deliver great service to your customers month after month. To stay alive, businesses need to be constantly innovating and creating new solutions to meet their customers’ needs. This means attending conferences, testing new technology, and even developing new products that push the boundaries of the company’s mandate.

More free time means more innovation. Outsourcing your accounting needs can help.

#4 - Access to Cutting-Edge Technology (Without Added Cost or Risk)

Many people don’t realize how much innovation is happening within the accounting industry. From calculation software to report generators, there is constantly new technology. Artificial intelligence and machine learning can be applied to accounting and invoicing.

If this sounds overwhelming, that’s probably because you shouldn’t have to worry about all this. But you do deserve an accounting firm that is committed to cutting-edge technology. Let them assume the risk (and the cost) of testing new technology.

There’s no need to purchase expensive new software to use in-house. You don’t need to send your HR team to an overseas conference to learn about cutting-edge research into payroll reporting.

Outsource your accounting needs to a firm that can do it all for you. They’ll assume the risk and the cost of staying in touch with the newest developments, and your company simply gets the benefits. Now that’s a smart business decision.

#5 - Reduce Environmental Impact with Efficient Automation and Paperless Invoicing

If sustainability is important to your business, then you’ll want to outsource your accounting to a firm that values paperless invoices and cloud-based data storage. If just 20% of companies switched to e-invoices, we could save 700 million pounds of greenhouse gases from being emitted.

It’s not easy to become a sustainable business. Many companies prefer to save a dollar even if it means using more paper and damaging the environment. But it is possible to stay competitive while reducing your ecological footprint.

Paperless invoicing is a gamechanger, and the best outsourced accounting firms offer this capability. It’s past time for companies to utilize the power of automation and paperless invoicing to improve the efficiency of doing business. Not only does paperless invoicing save trees but it can be much quicker than old school paper invoices. It’s easy to lose a piece of paper, after all. But there is a digital “paper trail” with paperless invoices that helps everyone stay organized.

Are you still wondering what’s right for your business? That’s okay! It’s an important decision and there’s no need to rush into anything. At the end of the day, working with an outside agency should feel like a partnership. You should feel confident that you can trust your new accountants to handle data with transparency, integrity, and clarity.