Accounting is a requirement for all companies across industries. Therefore, hiring a in-house accounts personnel is a common practice. However, there is another alternative that most companies fail to consider due to misconceptions and other priorities. Outsourcing accounting tasks is a possibility worth considering.
But is it the perfect match for you? Let us see the pros and cons of outsourcing your finance and accounting requirements-
For small companies and firms, the requirements may not to be too big, and therefore, hiring a separate team for the purpose is not cost effective. On the other hand, outsourcing accounting allows you to pay for only the amount of work that you have. Thus, saving you a lot of money.
Better internal prioritization
When tasks like accounting and finance are outsourced, you do not have to worry about them, and you can prioritize your focus as well as your resources on other tasks which are more important.
High-quality task delivery
When outsourcing, if you choose correctly, the firm handling your requirements will be full of experts in the area. Which ensures that your tasks will be taken care of with utmost expertise.
Process migration and understanding
When you outsource accounting and finance activities, the transition phase may be a little rough, and if proper understanding is not built with the firm, there may be issues that arise such as time difference or delivery related misunderstandings.
Lack of control
If you are a idealist and need everything done your way, outsourcing may be a tough option for you. As you have little control over how the process is handled and you may not agree with every part of it.
No last minute fixes or local assistance
As opposed to having in-house staff, outsourcing does not let you come up with issues or adjustments to your requirements at the last minute. As there is no local assistance, it has to be well planned and executed.
Outsourcing is a great option for new startups or small firms where all the resources are required for more urgent and important tasks. Also, large corporations may also benefit from outsourced accounting due to the sheer amount of the workload. However, you need to find a firm that is a good fit for you and develop an understanding with them, ROI is what matters.