WHAT IS OUTSOURCING?

Outsourcing, also known as Business Process Outsourcing (BPO), is the process of hiring another individual or company, either internationally or domestically, to manage various business activities for you. For some time now, it has become a standard business practice that enables small business, start-ups, and entrepreneurs to receive services and required skills, that can help them to grow their businesses, without any significant investments and further self-development.
Therefore, as your business grows to the point where you need to have a bookkeeper, who can manage different tasks for your business, but you do not have resources to hire an additional full-time employee or extra equipment and space in the office, outsourcing could be the right choice for you.
What is more, you can do so by advertising your employment needs or outsourcing qualified bookkeeping and accounting companies online, while virtually communicating your personal needs and requirements.

 

WHEN YOU CAN CONSIDER OUTSOURCING

From our experience working with different Scandinavian companies, outsourcing bookkeeping and accounting tend to work the best when:

• a small business does not require a full-time bookkeeper but needs a person with more skills than the office manager or receptionist can provide;

• a company of any size can not find a full-time employee with the suitable skills at the affordable costs;

• the temporary services are needed, e.g. extra help with end of the year reports or if a full-time employee is going on holidays, maternity leave, etc.–

However, even you will hire a skilled and qualified person, someone (usually the executive director) will still need to be involved in the process while approving invoices, making deposits, reviewing timesheets, etc.

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5 BENEFITS TO OUTSOURCE BOOKKEEPING & ACCOUNTING

1. Cost-saving. Most businesses consider outsourcing to be additional, and therefore the unnecessary cost for their business. However, when it comes in reality, the savings that outsourcing usually provides can be quite considerable as most companies can offer their services at the lower cost rates (typically due to lower labor costs at their location). Besides, by outsourcing, you save money on paying the salaries and benefits for the full-time or part-time employee, as you only pay for what you need. So there are no lost in productivity costs that come along with hiring full-time employees.

2. Extra time. As your business grows, you will find yourself spending more time managing your money and less time expanding the business. Therefore, the outsourcing administrative tasks like bookkeeping and accounting help you to focus your time, energy and resources on creating the business strategies, bringing more revenue, as well as, networking and building the relationships with your customers. However, if you have spare funds to afford the in-house accountant, use its knowledge and skills to generate sales and optimize your business expenses.

3. Expert service. Outsourced bookkeeping and accounting service providers continuously have to improve their skills and qualifications to stay competitive in the market, so you can be sure that you are handing over your accounting to a reliable and knowledgeable person. It means outsourcing may offer you the possibility to hire a professional with a higher level of expertise at the affordable price.

4. Flexible employment benefits. When you outsource your bookkeeper or accountant, you have the advantage of using his/her services only as you need them. This factor can be particularly valuable for small businesses, start-ups, and entrepreneurs as they may not have enough bookkeeping work to take care of on a daily basis. Besides, if outsourced bookkeeper or accountant does not perform to your expectations and requirements, you can easily terminate the contract with no further difficulties.

5. Consulting. Whether you are looking to expand your business or simply cut down the spending, it is useful to have a reliable and experienced expert alongside, who can provide you with various financial plans and options to reach your goals. Besides, the outsourcing provides you a great way to have full-time professional aside your team and use the service on Pay As You Go basis.

 

5 TASKS YOU CAN DELEGATE TO VIRTUAL ASSISTANT

1. Bookkeeping;

2. Reporting to authorities and Management;

3. Payroll processing;

4. Account payables (payments creation);

5. Account receivables (debtors follow up)

NOTE. If you hire a big-five accounting firm to perform an audit, you should continue to use the small firm for your accounting and bookkeeping functions. Due to independence regulations and standards within the accounting profession, a CPA firm performing an audit cannot also perform the accounting and bookkeeping for the same company. E-GST & Tax Services is a reliable accounting service provider to small and medium-sized businesses. If you are interested in outsourcing opportunities for your business, contact us to have a free consultation.