Why Should I Outsource My Accounting Department?

By AdminAssist tagged in Outsourcing - Jun 1, 2020 12:00:00 AM 4 min read
Accounting

In terms of excitement, there is no doubt that the front office is far superior to the back office. However, that doesn't mean that you can afford to just put off your back-office work simply because it isn’t interesting or glamorous.

But what if it didn’t necessarily need to be you that handled the back office work?

In many cases, it makes more sense to outsource things like your accounting department. In fact, it is estimated that about 37 percent of businesses throughout the U.S. already outsource their accounting tasks.

But how do you know when this is the right decision for your company? That’s something we will explore in this helpful guide on why you should take the plunge and outsource your accounting department.

Most Staffing Operators Have a Sales or Entrepreneurial Background

When you work in the staffing industry, chances are you aren’t going to have a background in mathematics or accounting. Instead, an overwhelming amount of staffing organization owners and operators have a background in either sales, management, or marketing. With that in mind, trying to operate an accounting department without any in-depth experience or training in accounting is an ambitious goal.

However, if you decide to outsource your accounting needs, then this allows you to get a team of professionals who do have a background in accounting. Therefore, you can feel confident that your money management is being handled by individuals with the right expertise.

Allows You to Redirect Your Focus

Back office tasks take up a significant amount of time. So if your attention is going towards running the accounting department, then this is a lot of lost time that could be better spent doing things that need your attention.

For example, outsourcing the accounting work allows you to shift your focus towards meeting with prospective clients, managing employee hiring processes, and planning out potential expansions. These are all tasks that are going to have a much bigger impact on the company in the long run.

Gives You Easy Access to the Latest Accounting Technology

One of the many challenges about trying to operate your own back-office services is that the system used to complete them is upgraded so frequently. In fact, over half of financial professionals upgrade their systems yearly. And when this back-office system is very much a secondary priority for you, trying to upgrade the system this frequently can be a major hurdle to overcome.

But when you outsource your accounting department, this will no longer be a hassle. Instead, your financial professionals will be the ones who have to upgrade the system, which is something that they will be able to do and adapt to with ease.

Once your accounting department is given access to these upgraded systems, completing tasks like billing and payroll will be noticeably more efficient, which is something that benefits everyone involved.

Makes Company Expansions Much Easier

When your company finally reaches a point where it is ready for expansion, it can be a very exciting time. However, it can also be a very hectic time. This is because you’ll need to find a way to continue with your current operations while also figuring out the logistics of the expansion. This is going to be especially tough when the expansion is going to involve setting up operations in a different state.

Once you start operating in a different state, it is going to result in needing you to abide by the different tax rates and compliance issues for that state compared to where you currently operate. For someone without an accounting background, this can be a logistical nightmare.

But when you have a team of outsourced professionals by your side, they can bear a lot of the burden associated with this. These experienced accountants will be able to determine back office changes that need to be made in order to successfully expand to any new locations and will then make the changes so that your upcoming expansion project goes off without a hitch.

Starts Snowball Effect of Financial Benefits

It might seem odd to think that outsourcing your back-office tasks could improve profitability. However, this is exactly what most staffing agencies see when they decide to outsource their accounting department.

This happens for a few different reasons. One of the big reasons was previously mentioned, which is that you will no longer have to invest in professional accounting software or any of the upgrades that come with it. Outsourcing the accounting department also means that you won’t have to pay internal accounting staff members, which are almost always going to be more expensive.

But the most exciting financial benefit of outsourcing is that it allows you to expand faster and refocus your attention, as previously explained. What these things mean is that both your back-office and front-office operations are going to become streamlined and will be able to be completed to meet an even higher quality.

As these processes improve, so will your reputation with both your customers and your employees. This will inevitably lead to even more business, which means more profit. And as the outsourced accounting department continues to improve the quality of your other services, it will begin the snowball effect of drawing in more customers, followed by an increase in profit.

All of these reasons paint a pretty clear picture of why every staffing organization should be outsourcing their accounting department. But don't just outsource it to anyone. Make sure that it is a team of professionals who have proven themselves to be a valuable resource to the industry.

This is exactly what you can find at AdminAssist, which already has over six decades of industry experience. So when you are ready to talk about outsourcing your accounting department and taking advantage of all of these great benefits, please don’t hesitate to contact our team of professionals at AdminAssist.

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