Starting a Business
Accounting might not be the most thrilling aspect of a business. You would perhaps prefer to babble about the products you manufacture and how you will market them rather than tackle your accounting responsibilities. Managing cash flow is one of the core principles of any business. The accounting department takes the center stage when finance is concerned. For one, it helps in evaluating the business status with the financial reports they present. It says a lot on the resource utilization, budgeting, and projections. A company also needs to worry about legal business compliances as well as filing for financial statements. All these functions handled by the accounting department are paramount to the survival of any business.
That is why, it would be best if you acknowledge that accounting is crucial to managing your finances efficiently. It is one of the central forces in your business. It is not just one of the business aspects. It is valuable to make the business unsinkable. So, the next thing you do is to work on the bookkeeping tasks.
Bookkeepers are insightful in managing A/R, collections, A/P, deposits, bank account reconciliation, payroll, basic financial statements, and sales taxes. As they make sure that your financial books are updated and managed properly as they do you will still find yourself engaged in the accounting department. Also, in an unforeseen business challenges such as health crisis (i.e. COVID-19 pandemic) and natural calamities, having a solid bookkeeping team will secure your assets and inventory while overcoming any economic wounds.
Why? Because there is a need for management accounting. Management accounting requires a higher level of responsibility as it prepares management and fiscal reports for business conformities. Management reporting is utilized to make business decisions clearly supported by real-time data and other indispensable indicators of performance.
But time will come that you are no longer capable of being too engaged in every facet of the business. Or when your business expands, you will realize that your time and effort will be more substantial if you concentrate on the core business management than dealing with the accounting responsibilities.
This is where you will find outsourcing to be the best thing to do next. Here are some reasons that outsourcing your accounting would aid you to reduce the hassle and allow you to maximize resources to more critical business aspects.
Hiring a regular employee is a high investment in your operational cost. While these employees are vital in making the business thrive, your investment to make the business ball rolling must substantiate their efforts. Plus, the fact the regular employees are the cream of the crop, this means you also give them the cream of the crop benefits like bonuses, medical insurance, and even their retirement package which your company should contribute to. All these equate to an expensive investment.
Whereas, if you outsource, you will deal with your partner company. Your partner will take charge of all employee relations, compensations, and benefits. Another strength that you can bank on with a quality outsourcing partner is that they already have established domain expertise, so you can trust that they know what they’re doing.
Reduce Potential Business Vulnerability
In essence, it is critical to delegate tasks to your employees; even so, the back-and-forth needed to manage bookkeeping and accounting could result in some security concerns. A professional accounting company would seriously take your fiscal safety, and there is no need to turn over the invaluable tasks to an unqualified apprentice.
Outsourcing accounting firms could cover payroll, bookkeeping, and invoicing requirements, along with comprehensive accounting services. They generally guarantee commitment to flexibility, visibility, and transparency to skip out on extended contracts in the event the services do not work well for you. They can also be your saving grace as a business continuity team during an emergency or disaster by overcoming financial threats.
Another two key factors that will fuel you in avoiding the risks are the ISO certification and SOX compliance. Being certified will help you align your business goals to the demands of your business partners and consumers. An ISO certified company has high regard to excellent customer experience by reducing errors and leveraging efficiency. A SOX compliant company meanwhile ensures that there is a strong financial reporting landscape by maintaining data integrity and credibility of financial disclosures.
Be at Peace as you Avoid Accuracy Issues
Although you may be adept at tracking the finances of the firm, it is reasonable to feel distressed when it is not your field of expertise. So, do not allow constant hesitation or jitters for a huge accounting mistake to dwell inside your head. Get rid of that fear by merely paying a professional and well-experienced firm that could successfully handle your fiscal record keeping. With the right team, you are allowing your business to breathe seamlessly by not worrying about your financial concerns.
Incorporate Global Best Practices
When you have to point out how to arrange and track the business finances more efficiently, you may opt for counting on established processes and practices. And an outsourced accounting company would already have those processes figured out. So, you could imagine how much more composed your workers would be realizing that they would be compensated in time, all because you employed an outsourced firm to cater to everything, including the payroll.
And when it comes to the financial aspect of the business, the next thing you’ll consider is perfection. It is not impossible to attain this if you have the right policies and processes that will be the organization’s lamp as you journey to success. However, establishing that is taxing that it may drain your analytical juices. So instead, let the right outsource company handle that for you.
So now, why would you consider outsourcing your Accounting Department?
Not to mention, one of the most excellent perks of outsourced support is personalizing a superiorly functioning staff with additional resources and know-how. Outsourced specialists who have a deeper grasp of industry-specific outstanding practices could generally improve processes and productivity and, most importantly, integrate the current staff.
Substantially, their fiscal reporting capabilities are commonly updated with industry standards and utilize the most advanced technology. Many a time, this concentration could assist in underscoring the needs of the business and its opportunities for growth.
The bottom line is that through outsourcing your business’ accounting requirements, you are able to concentrate on what you do best – operating a business that you genuinely love, and at the same time, saving yourself a considerable amount of money, time, frustration and potential distress.
Now is the Best Time
The best time to look for a partner company is before it becomes urgent. If you only sought financial assistance during the occurrence of a crisis, say a pandemic, the tendency of work is recovery from a financial loss rather than preventing it. Having a team of finance professionals will help your company identify these unforeseen events and create financial mitigation measures that suit best for your business.
Of course, you wouldn’t want to end with a company that is just good at babbling their accomplishments. Instead, you want a track record that stands out. While many outsourcing companies are excellent in the field of Finance and Accounting (as they claim), very few are bona fide.
Infinit-O is a trusted F&A outsourcing partner and we can help you save upto 70% on operational cost. We have collaboratively built high performance teams performing to excellent results over the past 15 years. Our teams comprise competent F&A professionals such as certified public accountants in the field of internal auditing, bookkeeping, and other critical accounting functions. We endeavor to enable our clients to meet their goals in terms of business growth, better productivity, and most importantly, cost efficiency.
At Infinit-O, we build great teams. Our goal is to create long lasting partnerships with our clients; rendering a strong combination of business consultancy, process optimization, and outsourced services; all utilizing the latest technology to provide excellent value for our clients. We are ISO-certified, GDPR and Sarbanes-Oxley compliant, so your company and data are safe with us because information security is also our priority. All these applied, your financial growth and continued profitability are sealed.
Let’s Build a Great Team for you – starting with Finance & Accounting.
Start small. Exceed expectations. Think infinitely. Think Infinit-O.
Thinking it’s time to partner up? Go and make the call.