The benefits of outsourcing accounting is a popular topic when a company starts looking into building up its finance function, but not all the benefits are immediately obvious. We will go over the clear advantages of outsourcing accounting services in addition to the lesser known but equally beneficial reasons to look into an outsource accountant or an entire team for your emerging growth company’s finance and accounting needs.
Get Access to a Full Range of Accounting Expertise, in a Highly Efficient Way
This is one of the benefits of outsourcing accounting functions that becomes clearer as time goes on. Early on, a company may start out by outsourcing bookkeeping services, perhaps to someone who works part-time or someone who is part of a staffing agency. But soon, the accounting needs will multiply as invoices and bills pile up, and visibility into the business becomes murkier as the company hires more people, the number of transactions increase, and the company has a pressing need to pay more attention to its future by coming up with practical budgets, forecasts, and strategic plans for the years ahead.
As for the benefits of accounting outsourcing, an accounting firm of consultants can provide you a full range of finance expertise, by helping you build out the finance function and fill in the gaps as they open up.
Gain Efficiencies by Outsourcing Your Accounting Services
You would not have to take on the burden or uncertainty of hiring and training full-timers for your finance function when you decide to outsource your accounting services. Your accounting services firm can fill in all the layers of your finance function—from day-to-day accounting through the high-level strategic input of a CFO—but only when your company needs such expertise. If only a few hours a week are needed for one or more roles, you would only have to cover those hours—and not take on the risk of paying someone for more hours than they have work to do.
At the same time, by working with a consulting firm that gets to know your business and looks out for your company’s best interest at all times, you will be alerted when either more time or a higher level of service would be needed. A tailored approach will include awareness of your company’s current needs while also working closely with you to figure out what works in terms of outsourced accounting service under current budget restraints and expectations at this moment in time.
Streamline Your Financial Reporting Processes
Smaller accounting teams of fast-growing companies understandably become overwhelmed as the company continues to get bigger. What can get lost in the day-to-day grind is the need to step back and put processes in place that can actually alleviate some of the stress, open up some team members to work on new projects, and lead the team to produce more reliable, more timely financial information and insights. One of the key benefits of outsourcing accounting functions is exactly this—a streamlined, smoother running finance function.
Reduce the Risk of Mistakes
Often, the most pressing need of a startup looking into help through outsourced accounting is the introduction of an accelerated monthly close process. Without it, a company is often stuck with outdated and inaccurate financial information that could lead to poorly informed decision-making. This also leaves the finance team in a cycle of stress and a higher likelihood of errors. More up-to-date, accurate information gives more senior leaders more confidence in the team.
Another of the benefits of outsourcing accounting is the creation of a full tech stack, to get the finance function away from manual processes and reduce the errors that come from that.
Free Up Valuable Resources to Focus on More Strategic Matters
Being a part of a startup is wonderful and exciting when everyone has multiple roles to play—however, that practice can take away from a growing business if one person is pulled away too often to focus on areas beyond their core job or expertise. To break the CEO or ther senior leaders from getting bogged down by financial challenges, a multilayered approach to the finance function, through an outsourced accounting service—which can include senior-level financial expertise—can ensure that everyone sticks to what they know best.
Benefits of Outsourcing Accounting Services When Choosing One Firm to Help Your Business
What are the advantages of outsourcing accounting services? If you are looking for the benefits of outsourcing accounting functions, you likely have an immediate need for support and expertise. As you consider your options for an outsourced accounting service, give considerations to the potential needs of your company over the long term. By choosing a finance and accounting consulting firm that can fulfill various needs over time, you will not have to go through this process again. These consultants, when the time is right, can help you streamline your accounting processes, build up your finance function, and also advise you and support you as you grow your business.
After all, accounting is about more than recording how your business has performed. It’s also the start of understanding the why’s behind that business performance and what past numbers can tell you about the company’s future, and guide you toward understanding what’s possible for your company and what your options are. If those options are not palatable, what needs to change to turn your hopes or vision into reality? A fully layered finance function can help you understand the many possibilities and the ways to achieve them.
How do I outsource accounting work? Companies have a multitude of options today when it comes to outsourcing accounting. Consulting companies like RoseRyan make it possible to start out slowly while ensuring that you will have access to the breadth of expertise you will need exactly when you need it. Ready to outsource your accounting and to learn how RoseRyan can help you? Reach out to us today.