If you’re currently managing your company’s accounting, bookkeeping, and payroll with an in-house team, you might be evaluating the effectiveness of this strategy. It’s common to notice that your accounting and payroll staff are overwhelmed with work towards the end of the month or just before payday, yet seem to have less on their plate at other times. Furthermore, the challenge of finding and keeping skilled employees in a competitive job market means that staff turnover is an ever-present concern.
Outsourcing these functions to a specialized firm is often a smarter choice for businesses, except perhaps the very largest ones. Accent CPAs, for instance, has facilitated the seamless transition for numerous businesses from managing these tasks in-house to an outsourced model. Here are five compelling reasons to consider this switch:
Boost Efficiency
Accounting and payroll outsourcing firms serve a variety of clients, each with different reporting schedules. Their goal is to help you establish a smooth and efficient process for your monthly accounting, payroll, and reporting needs. They create structured schedules that eliminate unnecessary tasks and require clear client approvals, ultimately aiming to enhance efficiency and minimize the time spent on tasks that don’t directly contribute to generating revenue. Accent CPAs, for example, leverages the latest technology to further improve these efficiency gains.
Leverage Expertise
By outsourcing to a specialized firm like Accent CPAs, you gain access to a team of experts and the best practices in the field. In-house, you might rely on the expertise of just one or two individuals, which can be limiting. Although you might occasionally find a highly capable employee, there’s often a gap in the breadth of skills or expertise needed to handle all aspects of finance and payroll effectively.
Realize Cost Savings
Outsourcing your payroll and accounting can lead to significant savings. Hiring full-time accounting and payroll staff is expensive, and the workload may not always justify a full-time position. For example, the combined salary for an experienced accountant and payroll specialist can exceed $140,000 a year. An outsourcing firm can often handle these tasks for roughly a third of that cost, freeing up budget for roles that directly increase revenue.
Reduce HR Risks
Relying on an in-house team for your accounting and payroll needs creates a vulnerability; what happens if your key finance person leaves suddenly or falls ill? This could lead to delayed payments or late financial reports. Outsourcing provides a reliable team that ensures continuity and adherence to timelines, removing the risk associated with depending on a single employee or a small team.
Secure Financial Data
The confidentiality of your financial and payroll data is critical. Allowing in-house staff access to this sensitive information poses risks, regardless of trust levels. Disputes or security issues can arise when employees have access to information like salary details. Outsourcing firms work with you to define who, usually senior management, should have access to sensitive data, ensuring the highest level of confidentiality and security.
Opting to outsource your accounting and payroll not only makes managing your finances more straightforward but also offers greater security, cost-efficiency, and expertise, making it a strategic choice for businesses aiming to streamline their financial operations.
