A lot is heard about outsourcing services, such as the accounting of a company, is beneficial. But what experts and statistics say about hiring an accounting outsourcing. Is this a service for all companies, or are there some that benefit more from accounting outsourcing?
What is outsourcing?
The activities of a company, outside its true objective, are obstacles to the takeoff of themselves. Against this, arises, he tells us, a management tool that allows them to focus on their core business, so that they do not need to take part in "important, but not inherent to their distinctive activities" processes. That management tool, whether an accountant firm in France or otherwise, is what is nowadays understood as outsourcing.
A study on the management of outsourcing in small businesses showed that the delegation of processes significantly influenced the level of profitability of the contracting entity.
This is due in large part to savings in costs such as salaries and the payment of benefits to personnel in this area, not counting the workspace, the costs of the technology necessary to improve processes, etc.
Error reduction in accounting processes
According to another study, companies usually show errors or deficiencies in the accounting area when they carry out this process internally. In this context, accounting outsourcing emerges as a strategic alternative capable of increasing the performance of these businesses because they can focus on their distinctive activity.
By hiring the accounting outsourcing service, the internal controls of a company improve, as well as the levels of transparency and accountability of each of the financial operations.
It allows working with specialized professionals
One of the great advantages of accounting outsourcing is that it allows a company to access the services of a wide range of talented professionals with extensive experience. Something difficult to implement, on their own, within the workforce of a company, due to high costs. This is possible because the service can be contracted for a certain period, according to the needs of the company that demands it, such as for the annual audit of the financial statements.
The demand for accounting outsourcing is increasing
In recent years, the demand for accounting outsourcing services has grown by more than 50%. Although the accounting item represents only 10% of the outsourcing services that are mostly provided in the country. In fact, regarding the type of company that requests the services, regarding the quantity, there are not many differences between small and large businesses; the benefits, in factors such as profitability and lower margin of error, make accounting outsourcing attractive.
Five benefits of accounting and tax outsourcing
For several years we have been hearing about the option of delivering or delegating to third parties. Certain processes, due to their operational nature or specialization, would help companies to lighten certain burdens and focus their resources on those activities that generate value and maximize their results. Thus, the idea of putting in the hands of specialized companies such as accounting management arises. However, not all companies are clear about the advantages or disadvantages that this would entail.
But, before going into detail the advantages and disadvantages, the question arises: what does the term “accounting and tax outsourcing” include? The literal translation indicates it as outsourcing or outsourcing and consists of hiring a company for the development of certain tasks in a specific area.
Importance of efficient accounting
The new directions that the business sector is taking worldwide almost forces its leaders to evaluate this alternative, as a way to centralize their efforts in the turn of their business. This is how accounting and tax outsourcing encompasses all those tasks that are specific to the financial area, providing a service based primarily on reliability.When companies choose to use this practice, they do so in the hope of getting an outsourcing company that provides them with a service. In addition to quality, it helps them to carry out these tasks with efficiency and punctuality, but above all, with a focus on solution aimed at generating value.
Due to these requirements, it is necessary that Outsourcing companies have highly qualified personnel and that they are also able to be one step ahead, anticipating the needs that those who hire them might have.After this introduction, the next thing a company should analyze is what the benefits of hiring a specialist for the development of accounting and tax tasks are?
Below, we list 5 of the main benefits that come with hiring a specialized firm for accounting and tax outsourcing: As expected, the main and most notable benefit offered by outsourcing, in general, is the decrease in administrative expenses and, therefore, the significant savings against the costs that can be assumed by a fixed and internal department that is responsible for accounting and tax work.
1. Greater concentration in the productive activity of the company
Accounting and tax activities are no less important than any other; On the contrary, it is essential in any company or business. However, these tasks are performed periodically and not permanently. Hence, it is unnecessary to spend time and increase costs that could be directed specifically at the production and organization of the company, which should be arduous and constant.
2. Control and accounting and tax planning
The accounting and tax outsourcing will allow you to enjoy the effective planning of many aspects added to the accounting planning. This is mainly reflected in the reduction of risks and contingencies of a tax nature.
3. More security in the issuance of reports
The issuance of the reports, both management and to meet third-party requirements of the company, are fully benefited due to the timeliness and specialization with which they are carried out.
4. Professionalization of the processes
The accounting and tax outsourcing companies, as well as the rest in general, try to guarantee at all times the effective development of the activities, for this, they offer the best and most qualified personnel to carry out the acquired responsibilities. In the accounting and tax area, staff must have extensive knowledge in financial and legal matters. Therefore the processes, records, reports and plans, in general, are completely professional and specialized.
5. Increase in human and technological resources
Taking advantage of the accounting and tax outsourcing service means an increase in benefits in every way, especially when we talk about human resources. Having the disposition and help of a professional will always be beneficial for the company. Likewise, in general, the professionalism of outsourcing staff is accompanied by access to innovative technological resources that will improve the experience.
These are not all the benefits that this solution can offer you – there are much more that we can offer. We have a specialized division that can meet each of the requirements of its customers, customizing each solution and accompanying companies in their growth or change management with the flexibility they require.