Accounting Outsourcing: Delegating the Flow of Finances to Professionals in a Cost-Efficient Way
Business is composed of a set of interrelated systems that ensure the smooth flow of the business process and convert capital to revenue efficiently. It is important for a business owner to consider each component as if it is just part of the existing system inside the process. Thus, utmost importance and consideration should be given to each process component, which includes the accounting process.
That is why we have tax lawyers. That is why we have public accountants. That is why we have financial managers. It is because each of these positions is an integral part of the accounting process in a company.
It is the measurement and the disclosure of essential financial information that will help public accountants, financial managers, tax authorities, investors, and other decision-makers to effectively allocate their financial resources to each business process, thus maximizing the conversion of a business’s working capital and revenues.
Accounting involves processes in which important financial information of a particular business is recorded, summarized, evaluated, and interpreted. Furthermore, since money is one of the biggest factors that may affect the existence of a business in a certain market, accounting is always given a high priority, attention and consideration.
In accounting, there are several aspects that a business owner should consider. There is cost accounting, cash-basis accounting, financial accounting, internal fund accounting, management accounting, project accounting, as well as a few others.
And the list continues to expand.
You might therefore conclude that accounting is a serious and critical matter that should only be handled by a group of people who have the technical expertise in dealing with the accounting as well as financial issues. In reality, more and more business organizations hand the accounting aspects of their business process to third-party organizations, most commonly known as accounting outsourcing.
Accounting outsourcing is considered to be one of the more effective management tools, thus many companies often incorporate outsourcing as one of their strategies in business planning. The Outsourcing Institute reported that the position of a CRO (Chief Resource Officer), a professional outsourcing executive manager, is now often used in larger corporate organizations.
However, you need not to be a large corporation to benefit from accounting outsourcing. Even small to medium-sized business can provide better service and produce high-quality products in a more cost-efficient way if they are able to outsource their non-core business processes, including their accounting aspect.
By decreasing the demands on your administrative personnel, you will be able to free them from additional responsibilities and they will be able to better support areas such as sales, clients, and marketing to name but a few.
Accounting outsourcing firms are able to do the accounting and bookkeeping tasks monthly, quarterly, and/or annually, alternatively they can supplement your present administrative staff to lessen the responsibility. Here is a summary of the services typically offered by outsourcing companies as it relates to the accounting process:
ï Preparing cash disbursement checks;
ï Preparing input credits and bank deposits;
ï Preparing company payroll;
ï Preparing tax deposits and bank reconciliation;
ï Preparing financial statements;
ï Preparing payroll tax returns;
ï Evaluation and review of financial results on different frequencies.
With your accounting process in the hands of outsourcing professionals, you can focus on the core elements of your business helping to generate higher revenues and profits.