Accounting services can represent a significant expense for businesses that are already struggling in tough economic times. While many companies choose to employ an accounting professional, more businesses are realizing that outsourcing these tasks can save precious time and money.

Outsourced accounting means that a company, no matter what size, hires an independent contractor to complete their accounting functions. The contractor may be an individual or a firm that specializes in outsourcing accounting services to businesses. Companies typically decide to outsource their accounting to utilize the knowledge of an accounting expert while cutting down on the time spent on payroll, bookkeeping and other accounting services.

On The Rise

More companies are considering outsourcing their accounting because tough economic times have left business finances tight. Outsourcing accounting tasks provides a company with the opportunity to save money on accounting costs while gaining the benefit of receiving services and information from a professional who is skilled in saving company money by thoroughly reviewing accounting records.

Accounting Functions That Are Typically Outsourced

Outsourcing may not be the choice for all of a company’s accounting needs, but there are certain functions that are commonly outsourced.

Payroll and bookkeeping services can be outsourced to ensure that employees are paid correctly and that payroll complies with all tax regulations. Employing the services of an outside accounting firm for bookkeeping saves time and improves accuracy.

Companies that suspect that there may be theft or dishonesty related to the finances of the business can outsource forensic accounting services to discover fraud and receive advice on how to rectify the issue.

It is important to note that some accounting functions must stay under the control of the company. For example, bill payments, investing and check signing should all be the responsibility of direct company employees.

Benefits of hiring an Accounting service

Having an accountant in house is expensive and learning how to complete accounting tasks consumes a lot of time that could be spent on tasks that are related to the core business. While hiring a dedicated accounting professional is an option for some companies, this means paying someone a salary and taking on the responsibility of tax payments and employee benefits for this individual. Not only is this an expensive undertaking, but it is also likely that the new employee will not have the same level of expertise that a firm specializing in providing accounting services will have.

The expertise that an accounting firm offers when completing outsourced accounting functions for a company has the potential to save a business money on operating costs. Accounting professionals are able to pinpoint areas where cost savings can be realized and relay recommendations that will help companies achieve these cost savings.

Any company thinking about outsourcing accounting should complete a quick cost-benefit analysis to decide if the choice is right for them.

Digiprove sealCopyright secured by Digiprove © 2012 Mitch Mitchell