Accounting tasks to a non-financial person can be a mammoth task. Wading through invoices, bank statements amongst others duties can be quite tasking especially for small business owners who have a lot of other things to do. Even businesses that have an in-house business team still need to manage the functions of the team to ensure they meet the business objectives at a minimal cost.
Benefits of Outsourcing. Outsourcing accounting functions to an external organisation has many benefits such as:
Cost reduction: The most apparent benefit of outsourcing accounting services to an accounting firm is the reduction in personnel related costs – recruitment, salaries, benefits, office space and other costs synonymous with staff. A number of businesses who outsource their business functions reported at least a 30% reduction in business costs without a decrease in productivity.
Quality of Work: Outsource companies thrive on reputation and to build their business they must offer a quality service. Businesses that outsource their accounting services benefit from a competitive market where firms must provide exceptional services to retain their clients.
Focus on core areas: Outsourcing allows a business to focus on the core business functions which can boost productivity by at least 32% according to a recent survey.
Access to innovation: To maintain a competitive edge, accounting firms endeavour to stay at the cutting edge by investing in advanced accounting systems and techniques for the benefit of their clients. Rather than invest heavily on a new accounting system and staff training, organisations now prefer to outsource these services to benefit from these new technology developments.
Article Source: http://ezinearticles.com/?The-Benefits-of-Outsourcing-Accounting-Functions&id=4149752
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