Outsourcing accounting and bookkeeping is one solution that businesses use to be able to take on the challenge of the financial crisis brought about by this pandemic. A change in the business environment and work habits may cause many changes. One is outsourcing non-core activities, like accounting and bookkeeping, to optimize efficiency and at the same time cutting costs. A lot of business owners prefer to have more time concentrating on the operations, marketing, or the general growth of the business rather than managing the routine tasks. The non-core areas of work include digital marketing, publication, catalog management, call center, accounting and bookkeeping, research, and virtual assistant work. The growing number of business processing outsource companies in the last few years is a clear indication of how outsourcing is being utilized nowadays.
Outsourcing accounting and bookkeeping activities is now a trend. BPOs for bookkeeping and accounting services generated USD 25 billion worldwide in 2014. This amount continues growing today. This allowed businesses the freedom to focus on core tasks and affordably manage financial record keeping using the services of accounting and bookkeeping services.
Below are the few benefits that can be harnessed from outsourcing accounting and bookkeeping services:
Security of information and data
Security is a great concern for businesses. Sometimes it is harder to secure information and data with in-house employees. An outsourced accounting and bookkeeping service can have better control over data because the service is covered by non-disclosure contracts and other layers of security. Audits and records are stored in secure servers and backups are regularly made.
With full-time employees doing the financial recording and analysis for a company, there would be other costs involved to keep that employee. The employee has to have insurance, social security plus other benefits. With a BPO model, the service rate is usually one fixed rate. This is more cost-efficient than an in-house person. This transaction model with a BPO is definitely a win-win situation.
Technology for the task increases while outsourcing
When outsourcing is implemented, the business owner does not need to keep up with the technology. As a client of a BPO, the business can take advantage of using technology without additional investments. The application used for reporting and tracking transactions is normally for the account of the BPO.
Updates on equipment or technology including software may be made by the BPO without additional cost to the client. The provider becomes more efficient for the tasks with the added benefit to the client.
The solution allows for workflow stabilization
With an outsourced task, the process can be stabilized after the usual period of adjustments. The stabilization of the transaction flow and regular reporting is essential for an efficient process. The business owner does not have to spend time monitoring work but only gets the reports for compliance on a scheduled basis.
No risk on personnel retention
One of the benefits of outsourcing is to leverage the resources of the provider. The client no longer needs to train people nor hire specialists to do the process. This allows focusing on core tasks rather than human resources management.
In summary, the advantages of outsourcing accounting and bookkeeping services to a reputable BPO far outrank its disadvantages. Considering the option can greatly increase productivity as well as additional profit. The focus when outsourcing accounting and bookkeeping is on the goal of revenue generation rather than concentrating on non-income activities.