As a decision maker for your business, you spend the majority of your time overseeing daily operations. You likely take great pride in performing the majority of activities on your own, including bookkeeping.
Nevertheless, analyzing the business’s financial data might be the last thing you want to do at the end of a hectic day. Together with the daily bookkeeping duties, there are also recurring monthly bank reconciliations and reports. When you add these obligations to approaching tax filing deadlines, it’s easy to become overburdened.
It’s time to find a new bookkeeping solution when this occurs. After reading this article, you might want to consider outsourced bookkeeping services to an outsourcing company, as we will cover why it is a big win when you do.
What is Outsourced Accounting or Bookkeeping?
For small organizations, outsourced accounting offers the whole accounting department expertise. Daily transaction coding, accounts payable, accounts receivable, payroll, management financial reporting, and many more tasks are all handled by an accounting department.
Due to their entire staff of accountants, providers of outsourced accounting can offer a small team of accountants at a lesser cost than when engaging a full accounting department.
What are Outsourced Bookkeeping Services?
The sections among bookkeeping, accounting, and taxes are actually somewhat obscure. Your bookkeeper may have a different set of duties. What exactly does that entail if you decide to outsource your bookkeeping? What tasks can an outsourced bookkeeping service oversee for you? Any or all of the following jobs can be completed by a bookkeeping service or an outsourced bookkeeper:
- Delivering financial data from your credit card transactions, payroll records, bank statements, invoices, and more
- Sorting and reconciling those transactions to assure everything’s accounted for
- Keeping track of expenses and unrecognized revenue (which typically includes accounts payable and accounts receivable management)
- Handling accurate financial statements every month or every three months, containing a balance sheet, a statement of cash flows, and a profit and loss (income) statement
- Providing clear explanations of those financial statements and other bookkeeping tasks concisely
- Issuing investors, tax preparers, and anybody else who might require access to thorough and accurate financial information
With the person or service that you select, you’ll need to work out the specifics. Before signing up, it’s important to clarify any uncertainties and confirm that your expectations match their capabilities.
Benefits of Outsourcing Bookkeeping
It’s not unusual for a small business owner’s day to take a few different turns. There is just not enough time in the day to do everything involved in running a business, including managing staff, paying bills, and making long-term decisions such as assessing costs. In order to expand your company, you should look at the advantages of outsourcing bookkeeping.
The ability of a company to grow hinges upon its bookkeeping division. It’s a time-consuming, monotonous process that you can hire an internal employee to complete. Yet, as you can see from a quick glance at the advantages of outsourcing bookkeeping, it involves much more than just computing and typing a few figures.
1. Cost Savings
Business owners are seeking ways to reduce labor costs because it is one of their biggest expenses. Hence, if we examine the advantages of outsourcing, we can see that there are efficiencies to be had. Businesses may leverage our knowledge, quality, and further cost benefits when they outsource their accounting and financial services.
To save money, consider outsourcing the accounting and finance departments.
2. Speeds Up the Hiring Process
You will see how difficult the hiring process is if you look at the bigger picture. Resources are required to handle it at every stage, from creating a recruitment strategy to selecting individuals for interviews. When the hiring procedure demands time and money from your company, you will have to sacrifice this time for the employee or for yourself.
Many businesses do not think about the time they spend trying to find a qualified accountant. Besides this, expenses and time correlate equally. It is immensely necessary to consider the cost savings of outsourcing business functions.
3. Time Saving
You’ll find that as your business grows, you’ll spend more time handling your money and less time scaling the business. Thus, outsourcing bookkeeping enables you to focus your time, energy, and resources on creating company ideas. It will boost sales when done in conjunction with networking and client connection development.
4. Proficient Accountants and Bookkeepers
Through outsourcing, you will find a professional with more experience for a fair price. Also, you have access to their team of accountants when you choose an accounting firm as your outsourcing partner. You may be sure that your accounting is in the hands of a trustworthy and professional company by carefully choosing the outsourcing firm.
5. Smoothly Scaling Accounting
Accounting service companies are able to expand your services quickly and without any lag. For instance, you might be forced to recruit more help if you have more bookkeeping and accounting tasks than one employee can perform without going through a challenging hiring process.
Moreover, businesses that provide accounting and bookkeeping services also charge hourly fees. That suggests that you can change the hours without any disruptions.
Accounting automation software is used by the majority of firms to save time. It saves time while also lowering risk. Automation in accounting lowers human mistake. Second, automated software delivers real-time reports to accountants. They assist in seeing potential problems and swiftly resolving them. Also, it will reduce the possibility of internal fraud.
The majority of companies that offer accounting services have a lot of expertise working with automation programs which include QuickBooks, Sage, Visma, Xero, Microsoft Dynamics, and SAP.
7. Expert Financial Advice from Your Accountant
Finally, an experienced accountant will frequently propose ways to increase accounting productivity. He occasionally collaborates with other companies and might offer a fantastic customer experience. Whether it be for tax planning, accounting software, or even financial counseling.
The economy of the nation used to be dominated by agriculture, but it has gradually changed to industry and services. A larger range of work possibilities and improved entrepreneurial chances are the results of this. As a result, foreign investors view the Philippines as a desirable offshore outsourcing location where they can affordably access a talent pool of young, educated, customer-focused, English-speaking workers. The skills of Filipino labor are continually updated and modified.
Why Outsource Bookkeeping in the Philippines?
Because all accounting courses are taught in English at all colleges and because Philippine accounting methods are based on US law, the country becomes the perfect place for outsourcing accounting services.
How Does Outsourced Bookkeeping Work?
Depending on whether you decide to outsource your bookkeeping to a human-only service, a freelance professional bookkeeper, or a hybrid bookkeeping service, the process may change slightly. Here is how the procedure works with outsourcing bookkeeping:
Step 1: Connect all the financial accounts and software that your company already uses by setting up integrations with the help of your account manager. From then on, the procedure is dependable and automatic, transferring your financial information into the software from all sources.
Step 2: The bookkeepers record, classify, and reconcile transactions using the software. You don’t need to consider or worry about your books in the interim.
Step 3: We send over your clear and accurate financial statements at the end of each month. When you need assistance or have concerns about your monthly financial statements or anything else, your account manager is always there to help.
Outsource Your Bookkeeping to the Philippines Now
Indeed, assessing your existing financial situation and maintaining it requires excellent capabilities. Lack of time and resources, however, impedes this crucial task. Thankfully, with the help of outsourced bookkeeping, you can easily obtain accurate financial records, manage payroll, produce financial statements, and submit taxes. To manage your enormous duties, you need an outsourcing partner to lighten your load.
One of the leading businesses in the country for business process outsourcing is Outsource-Philippines. We have developed the top-notch talents necessary to service and meet the various needs of our clients as one of the pioneers in this sector, including outsourced bookkeeping services. Book a consultation now!