Overview

With today’s technology, businesses have the opportunity to outsource their back office services to benefit from greater expertise and efficiency, and one of these services is accounting. By outsourcing accounting, businesses can access more reliable financial records, better use of resources, with savings on payroll and operational costs. However, outsourcing can bring its own set of risks and requires careful consideration to ensure businesses make informed decisions to derive the above benefits.

That’s why it’s essential to understand what needs to be considered when selecting an outsourcing solution, whether you intend to grow your accounting team or are just beginning to do so. In this article, we will look at what you need to know about outsourcing accounting and its benefits for your business.

What is Accounting Outsourcing?

Accounting is essential to running a business, whether small or established. It will help to track and evaluate the business’ financial performance, measure and budget resources, make accurate forecasts, and develop effective strategies for growth. Accounting tasks take up valuable resources and time and often require a specialised set of skills.

Especially within the Australian market, accounting skilled resources are becoming harder to find, attract or retain and salaries are rapidly increasing. Due to these reasons and more, many companies are now outsourcing accounting roles. The concept of accounting outsourcing is to hire a professional from outside your company to provide accounting services on a long-term contract. By outsourcing, businesses are able to lower their overhead costs, free up their revenue generating or client facing staff, take advantage of expert knowledge, and access new technology.

How is Outsourcing Accounting Beneficial for Small Businesses?

If you are running a start-up or small business, you know how important it is to keep accurate financial records of your operations. You might also have time constraints, increased workload with limited resources and a lack of funds to continue to hire onshore.

By outsourcing accounting tasks, small businesses can experience cost savings, greater efficiency, and time savings allowing them to stay on top of their finances.

Here’s are some major benefits of outsourcing accounting:

• Reduced labour and overhead costs
• Expert advice
• Data security
• Access to technology
• Improved cash flow