Accounting is one of the most important areas for startups to get right. It doesn’t matter how great your product or service is; if you aren’t able to effectively manage costs and expenses, it will be difficult for you to keep afloat as a business.
It’s for this reason alone that so many startups turn bookkeeping and accounting outsourcing in order to save money without sacrificing quality.
Although there is the misconception that outsourcing can lead to poor quality output and a high price tag, this is not the case with accounting outsourcing services. Many large-scale companies have benefited from finance and accounting outsourcing, and so have startups and mid-sized businesses.
Here are three benefits of outsourcing bookkeeping and accounting work for startups:
1. Save time and money
While the concept of outsourcing is nothing new, it has been one that’s grown in popularity over the last few decades. This is due to a number of factors including the fact that companies are expanding their reach globally and need skilled talent in other areas around the world. It also helps with costs because employees who work abroad typically have a lower cost of living, so the cost of labour is usually lower.
When you consider how much time, effort, and money it takes for your company to hire, train, supervise, and manage in-house teams, outsourcing can actually be more cost-effective and time-efficient. In this sense, outsourcing can be your strategy for increasing scalability and profitability.
2. Gain access to professional advice that you may not have otherwise
Starting your own company is no easy feat. You need to set up the business, find funding and hire employees to carry out various tasks. If you’re not into accounting and finance but still want to run a successful business, there are many ways in which you can make this happen.
Choosing the right outsourcing partner for your venture will be instrumental in helping with everything from bookkeeping to tax filing and even payroll services.
Outsourcing accounting work is an economical option for many businesses, as it saves them both time and resources by freeing up their in-house staff from mundane work. It also offers great peace of mind for business leaders.
Some other benefits that are not mentioned as much are access to an international knowledge base of employees who have experience working in different industries, with experts in financial statements or different accounting software which makes training easy.
3. Have more resources to focus on your business
While many people may think that outsourcing accounting is something only big businesses do, outsourcing for startups is also a good idea. Regardless of its size, a company may choose to outsource some of its time-consuming tasks. Using outsourcing services allows companies to focus on what they do best while minimizing business costs and maximizing productivity.
Outsourcing also offers freedom from having to maintain infrastructure in-house which means that there is no need for the associated costs like office space, hardware or software license fees, etc. With modern-day communication tools, it's easier than ever for businesses to build an outsourced finance team that feels like they are an extension of their own business.
Outsourcing is a strategy that helps many companies become more productive. This also gives them an advantage over competitors because it allows them to scale up or down depending on their current needs.
Outsourcing is a good way to increase output, save expenses, and increase productivity in companies. Outsourcing jobs will allow employees to spend more time focusing on tasks that they do best and what the company needs. This leads to higher productivity and engagement, which can improve the overall quality of their work output.
Some businesses may think outsourcing is bad because of job loss or lower wages, but this can actually lead to higher salaries for those who remain employed in fields where there is an abundance of qualified workers. The increased production leads not only to higher profit margins but also better product quality which helps satisfy customer demand even further.
Amped HQ: Reimagining Accounting Outsourcing
We know that you have better things to do than worry about GST, chase invoices, and spend your weekends doing the books. We’ll help you find the right finance and accounting talent that you need to drive your business forward.
Schedule a free strategy session today to learn more.