Account outsourcing is the strategic practice of delegating specific functions to external third-party service providers instead of maintaining an in-house department or hiring full-time employees.
What is Outsourcing?
Proven to be a successful strategy for businesses, outsourcing is the strategic adoption of technology and automation at an accelerated pace. Business owners focus on their core functions, which are directly related to generating revenue. These core functions are at the heart of the business's success.
Non-core functions, although not directly tied to revenue generation, play a vital role in the overall health of the business. They constitute a significant portion of the business's expenses and encompass tasks such as bookkeeping, accounting, payroll, financial management, and financial planning.
Benefits of Outsourcing Financial Accounting:
Resource Management: It allows businesses to allocate resources as needed without the burden of paying benefit costs or salaries.
Time Savings: Outsourcing improves work efficiency and frees up time for businesses to focus on their core operations.
Access to Real-Time Data: Outsourcing provides access to updated real-time financial information, facilitating informed decision-making.
Expertise Access: Businesses can tap into the expertise of professionals who can assist with accounting software selection and implementation.
Focus on Core Business: Outsourcing non-core financial tasks enables businesses to concentrate on core activities, including reconciliation, forecasting, trend analysis, and budgeting.
Financial and Tax Guidance: It grants financial and tax advisors access, offering support in financial and tax planning, business succession, and risk management.
Challenges Faced by Businesses in Accounting
Common Bookkeeping Mistakes: Accounting errors often result from common bookkeeping mistakes, such as incorrect numbers and mixing business and personal accounts.
Lack of Monthly Financial Reports: Businesses struggle to provide monthly financial reports, hindering financial visibility.
Compliance Issues: Businesses must adhere to federal and state regulations and tax codes to avoid IRS penalties and expensive fines.
Inefficient Software Usage: Many businesses do not efficiently utilize their accounting software.
Late Payments and Billing Errors: Challenges related to late customer payments and inaccurate billing.
Solution Through Outsourcing
Many businesses find it challenging to manually manage accounting tasks, especially when they lack the workforce or time for financial operations. Outsourcing is the solution to these accounting challenges as it offers significant assistance for technical tasks. Businesses commonly outsource responsibilities such as accounting (37%), IT services (37%), and digital marketing (34%) to enhance expertise and efficiency.
Why Choose BnC for Finance and Accounting Outsourcing?
Cost Efficiency: Outsourcing eliminates recruitment costs, infrastructure expenses, training, and other operational costs associated with in-house accounting.
Tax Compliance: BnC ensures timely tax return submissions, helping businesses avoid tax penalties.
Audit Preparedness: BnC assists business owners in preparing finances for banking, investor reviews, and regulatory authorities, reducing last-minute audit surprises.
In an era marked by relentless technological advancement, outsourcing finance and accounting services emerges as a pragmatic solution for businesses seeking resolution to their challenges. At our organization, we offer a comprehensive array of accounting services to cater to diverse business needs, spanning from efficient payroll management to meticulous tax accounting.