Are you just starting a business and focusing on growing it? Don’t have enough manpower skilled enough to handle your finances? Well, have you heard about outsourced accounting? This could help you in many ways, especially in ensuring that your business remains profitable and has a steady, positive cash flow. Here’s everything you need to know about outsourced accounting services.
What is Outsourced Accounting?
A company—whether a startup or an established one—needs a good accounting system to survive in the business. Thus, accountants and finance experts are important job posts to keep the business going. However, not all companies can afford to hire and train professionals who will take charge of the finance. This is where outsourcing accounting services come in.
You don’t need to spend a fortune to have in-house accountants and bookkeepers. There’s no need to allot much time to go through a tedious hiring process. You don’t need to go through the hassle of training accounting staff. This is because you can hire accounting professionals in just a click through outsourcing. Outsourced accounting provides the same service as in-house accounting such as handling accounts payables and receivables, payroll, transaction coding, and financial report. But this is cheaper and more practical. You don’t want to spend too much for a service that you can avail of for a fraction of the price, right?
The Different Types of Accounting Services
Accounting services are important to all businesses because they keep companies afloat with the right accounting functions. Thus, it’s vital to know the best outsourced accounting services for their business. To help you identify what suits your company’s needs the most, we have prepared a list of the types and services in this industry.
Four Main Types of Accounting
There are several types of accounting specializing in different areas and answering the needs of varied industries. Here are some of them.
Forensic Accounting
This type of accounting deals with the reconstruction of financial information that was lost due to business closure. Accountants audit and investigate in cases of litigation or fraud. They also help businesses by giving advice when it comes to insurance and legal support.
Government Accounting
This field focuses on auditing the revenue and expenditures of government sectors. Accountants make sure that the finances of the public sectors stay within the allotted budget.
Management Accounting
Accountants help companies in managing their finances by monitoring and controlling costs. Also, they focus on gathering information for internal operational reporting and financial forecast. This, in turn, helps businesses to take preventive actions.
Tax Accounting
This revolves around accounting for all tax-related matters. Accountants focus on aligning the financial statements to the regulations under the tax law. They work on tax filing, tax planning, and tax return documents.
Top 5 Outsourced Accounting Services
Aside from the different types of accounting, it would be of great help to know the accounting services that you can outsource.
Bookkeeping
This is the recording of financial transactions such as daily records of sales, payments, and purchases. Bookkeepers manage daybooks containing records of credit and cash flow. Businesses need this service a lot in order to keep track of the expenses and balance sheet, as well as to make sure everything is well documented.
Account Payable
This focuses on recording debts and when payment should be made, managing financial documents, and handling overhead expenses by modifying payment systems.
Account Receivable
This plays a key role in helping business owners track loans, those who owe them, and how long they’re waiting for the payment. Accountants make sure that clients will get paid faster, doing so by improving the processes in invoicing and collection rates.
Payroll Processing
This service focuses on employees’ income, deductions, and bonuses. Accountants offering this service make sure that there won’t be a discrepancy when it comes to tax rates and payouts.
Bank Reconciliation
It zeroes in on recording and monitoring all transactions to avoid potential fraud. Accountants make sure to regulate and duly inform the clients about all the deals.
The Benefits of Outsourced Accounting Services
Accounting services are important because they help growing companies achieve their business goals. This is possible because they can focus on the core tasks without neglecting all the financial transactions such as cash flow, overhead costs, and payrolls. Outsourced accounting services keep the business running efficiently by monitoring expenditures and improving the financial system. Still hesitant to offshore an accounting team? Check out some more of its benefits.
Cost-Effective
Having an in-house accounting department isn’t cheap. You have to spend on the hiring process, training, employee benefits, and such. On the other hand, if you choose to outsource, the BPO companies would worry about those things for you. Plus, you get to save extra bucks.
Time-Saving
As mentioned earlier, outsourced accounting services save you so much time you could’ve spent on the recruitment process. You can just let outsourcing companies do that for you. Another thing about time is you can have access to their services 24/7.
Work with Experts
One of the most important benefits when you outsource bookkeeping and other accounting services is that you’ll surely be working with professionals who are equipped to provide quality work. They regularly undergo training to keep abreast of the best practices in the financial industry. Thus, you can have peace of mind as you focus on your core tasks.
Things to Look for Before Outsourcing Accounting Services
Outsourcing companies can ease your stress from finance and accounting. With their team, they can provide services to help you with your financial data such as CFO services. It sure has a lot of benefits; however, before you dive into hiring offshore accountants, you have to consider some factors that make a good financial services provider. To help you, we have listed things to look for before hiring their services.
Security
The privacy of your data and other information should be their utmost priority. Having the assurance that they are safe in the vault is vital. Thus, it would be great if they have a non-disclosure agreement.
Payment Term
One of the possible reasons you chose to outsource is the cost. Hence, you have to be familiar with the payment terms of the firm before hiring them. BPO companies have different payment methods and costs. Having an option that suits your needs is indeed a plus when deciding which company to hire.
Flexibility
A good accounting firm would offer you flexible terms to meet your requirements. They make sure to meet the deadlines you set without letting the output suffer.
Outsourced Accounting Services Made Easy with Outsource-Philippines
You don’t need to burden yourself with daily logs, financial reports, bank accounts, accounts payable and receivable, payroll, and other financial transactions. This is because you can rely on our dedicated outsourced accounting team. This is more than a trend; it has become a solution for most businesses because of its benefits. Don’t be left behind; make the most out of outsourcing–worry less, save more, and focus on growing your business.
Looking for a good service provider? We at Outsource-Philippines offer the best financial services. We make sure that our expert accountants and bookkeepers will handle your books and ledgers. What are you waiting for? Take the easy route with our staffing solutions now!
