What is Outsourced Accounting? 6 Factors to Consider when outsourcing accounting services

What is outsourced accounting?

Outsourced Accounting is assigning tasks such as bookkeeping, tax preparation, and auditing to professionals (outside of the company) in the same country or another country. You can collaborate with an outsourcing accounting company and hire the candidates by interviewing them. These resources will handle day-to-day work operations just like your own employees.

Nowadays, many businesses, start-ups, and entrepreneurs struggle to find an accounting professional with the necessary skills to prepare financial statements, tax returns, incoming invoices and many other. These firms have started considering outsourcing accounting services to a company with the necessary knowledge and qualifications. But is it really worth outsourcing accounting services?

Here are some factors to consider while outsourcing accounting services:

1. Scope of Work

It is very important to have clarity on which accounting services you want to outsource. You must first create a list of requirements.

To do so, examine your current accounting system and make a list of its limitations, as well as the goals and scope that you hope to achieve by outsourcing accounting services.

The primary cause of outsourcing failure is a lack of clarity in the requirements and scope. Giving a clear set of requirements will help you in obtaining the best possible result from the firm to which you have outsourced your accounting services.

2. Quality

After the scope of work, the next factor to consider when outsourcing accounting services is the qualification of the team.

Knowing about their qualifications, education, and experience will help you understand the quality of their services. Though the companies that provide outsourcing services have best-in-class teams, it is better to take this information in advance.

Never compromise the quality of bookkeeping and accounting services used in your business!

Choose an accounting team that has hands-on experience with the services that your company requires.

3. Cost

Now that you can easily select an outsourcing accounting company, don’t overlook the cost. Focus on quality over price.

The goal of outsourcing services is to improve your profit margins and maximize revenue as much as possible.

You should also note that different accounting experts have their own strengths, and every company has a different level of experience.

Compare the cost of an outsourced expert to the expenses required to support a full-time employee. You will notice that it is usually more cost-effective to outsource these services rather than hire another employee.

4. Security

Ensure that the outsourcing accounting company meets all measures of security.

You are dealing with your client’s sensitive data like their SSN, bank account details, transactions, etc., which is very important to protect.

Understand how the outsourcing team will work on the security before assigning the work. Ask them what measures they are taking to prevent security breaches.

5. Communication

It is very important to have clarity and understanding between both parties. For that, proper two-way communication is required.

You should use well-trusted communication channels and ensure that you and the outsourced accounting company both are on the same page.

Schedule regular meetings to keep track of work and receive updates on tasks assigned.

6. Timeline

Setting a timeline for your projects is essential because your clients expect you to deliver their work on time.

You should be able to get the right kind of help from an outsourcing company that understands the importance of meeting deadlines.

To avoid unnecessary back and forth, provide all necessary data to your outsourced team at once. Your queries should be settled within a certain timeframe.

Inquire about their backup plans in case a deadline is missed. You should avoid working with them if they don’t have any.

You are now well aware of all the factors to consider. The next step is to create the right system for outsourcing your accounting tasks so that you have the necessary support for the company’s overall efforts and vision.

Do you want to learn more about how your company can benefit from outsourced accounting services? Then now is an excellent time to contact our team. Contact us at your convenience when you are ready to learn more about how our accounting services are transforming the industry. Infinity Globus is always here to help!

Get in touch with us today to see if our services are a good fit for your company.