It’s heartening to see businesses reopening and expanding, a testament to the world’s gradual recovery. However, those who navigated supply chain problems and the worst of the COVID-19 pandemic now face a new obstacle—rising costs caused by record inflation.
In July 2021 and July 2022, business revenues grew by 87%, but in contradiction, profits were almost stagnant, dropping by 4%. These numbers underscore the importance of financial management as the cornerstone of any business during a crisis.
Accounting and bookkeeping, while often perceived as mundane tasks, are the unsung heroes that keep every enterprise afloat, especially during today’s massive inflation. Yet, when managed in-house, they can become formidable challenges.
Importance of Strategic Accounting and Bookkeeping
Accounting systematically analyses and interprets financial transactions while bookkeeping logs them. Together, they ensure accurate financial records, tax compliance, informed decision-making, and updated income and expense tracking, particularly in turbulent economic times.
Recent studies show that recession causes many businesses to grapple with mounting costs, time constraints, and the constant pursuit of specialised expertise to navigate intricate financial landscapes.
Introducing a key player: outsourcing accounting and bookkeeping services. These services unlock various benefits, from cost savings to enhanced financial accuracy. Discover more about effective financial management, and find out how outsourcing can revolutionise your approach to accounting and bookkeeping, propelling your business toward unprecedented growth.
Benefits of Outsourcing Accounting and Bookkeeping Services
Now that you understand the power of outsourcing accounting and bookkeeping services, let’s explore the benefits of this strategic move. Here’s a clear picture of how it can transform your financial landscape.
1. Cost savings
A business is a significant investment, and expenses can rack up quickly. However, outsourced bookkeeping services can reduce overhead costs like statutory benefits, utility bills, and employee training because they’re not in-house hires.
Virtual bookkeeping has fixed costs laid out by your outsourcing partner, which takes additional expenses out of your hands.
2. Access to experts
Outsourced professionals have the skills and knowledge to handle various financial functions deftly. Their expertise provides you with an edge for your venture. Tap into expert skills for accuracy and compliance, freeing up your time to focus on business growth without constant internal evaluations.
3. Time savings
By offloading specific tasks to accounting and bookkeeping professionals, you get more time to focus on core business functions like product development and brand building. Use this free time to work on strategic goals that elevate your business performance.
4. Compliance
Only professionals handle accounting and bookkeeping services when it’s outsourced. Their business process management systems stay up-to-date with regulations, tax laws, and financial reporting standards, alleviating concerns about missed deadlines or non-compliance.
5. Accuracy
Leveraging the technology and expertise of outsourcing providers can substantially enhance the precision and reliability of your financial records and reports. This reduces errors and mistakes compared to relying solely on in-house software and tools.
Imagine the peace of mind that comes from accurate financial data. With these files on hand, you can make well-informed decisions and maintain trust with stakeholders.
6. Scalability
Whether experiencing growth or facing challenges, business needs and demands can fluctuate. Unlike maintaining an in-house team, you can adjust your financial support as needed. It’s like having a flexible financial department that aligns with your daily operational needs.
7. Business intelligence
Experienced outsourced professionals specialise in analysing industry trends, identifying cost-saving opportunities, and providing strategic financial recommendations. With their unparalleled business intelligence, especially from similar industries, they assist in making data-driven choices that drive profitability and growth.
Outsourcing goes beyond number crunching; it becomes a source of strategic guidance that empowers you to thrive in a competitive landscape.
8 Accounting and Bookkeeping Services You Can Outsource
It’s crucial to pinpoint the specific accounting and bookkeeping tasks you can seamlessly delegate to experts. Take a closer look at the array of accounting and bookkeeping responsibilities that skilled professionals can help you with and how they can redefine your financial management approach.
1. Data entry
One of the most common accounting errors is data entry lapses. Inaccurate data entry can undermine company credibility, waste resources, and compromise information reliability. Outsourced accounting and bookkeeping companies record daily financial transactions accurately, preventing costly mistakes like transposition or missed entries.
2. Bank reconciliation
You may find dealing with bank issues complicated, especially if you’re unfamiliar with the procedure. Fortunately, accounting professionals can precisely match system transactions with bank data.
They can spot inconsistencies or mistakes, assisting you in avoiding financial irregularities and preserving the accuracy of your financial records. Not only can this help you stay on top of your responsibilities, but it can also elevate your reputation in your industry.
3. Accounts receivable
How often have you experienced mismanaging funds because you failed to take note of money owed to you? Accounts receivable are funds customers owe you for products or services that have been invoiced.
Outsourcing streamlines accounts receivable management, with outsourced professionals managing the invoicing process, tracking customer payments, sending reminders, and applying discounts or penalties when necessary. This includes automated reminders to customers with overdue payments, ensuring timely cash flow.
4. Accounts payable
Managing money owed to you is tough, but so is keeping track of the money you owe your suppliers and other providers. With an outsourced financial team, you can efficiently handle accounts payable tasks and consistently stay on top of dues and deadlines.
They can process vendor bills, schedule payments, negotiate terms, and verify receipts, so you won’t have to! They can help your business maintain good relationships with suppliers and avoid late payment penalties or disputes, building a good brand image.
5. Payroll
Did you know that over 88% of businesses made payroll errors in 2022? This statistic underscores the importance of accurate payroll management. Outsourced accounting and bookkeeping services help ensure proper payroll management, including issuing paychecks, tax filing, and report preparation, reducing the risk of costly errors.
6. Financial reporting
Security is paramount in bookkeeping and accounting. Reputable outsourcing firms prioritise data security, implementing rigorous measures to protect your sensitive financial information. This ensures that your confidential data is entrusted to a provider that upholds security.
Outsourced accounting services encompass comprehensive financial reporting, including income statements, balance sheets, and cash flow statements, all derived from your accounting system. This process offers both precise financial insights and heightened data security.
7. Tax preparation
Getting bookkeeping services for a small business is necessary, as there are simply a lot of responsibilities you need to stay on top of. Without help, it can be overwhelming to address them one by one, especially regarding taxes.
Outsourced professionals can meticulously prepare and file your tax returns, ensuring compliance with complex tax laws and regulations to minimise the risk of audits or penalties. Additionally, they identify eligible deductions and credits, optimising your tax liability and increasing savings.
By combining tax expertise with streamlined bookkeeping services, outsourcing simplifies your tax responsibilities, allowing you to focus on growth.
8. Budgeting and forecasting
Forecasting is a critical process that can help you make better decisions by predicting future outsourcing trends and outcomes. However, accurate and plausible forecasts require specialised systems and skills learned through experience.
Scoring online bookkeeping services from experts can aid in accurate budget planning, performance monitoring, and informed decision-making for your business’s growth and stability.
Best Practices for Outsourcing Accounting and Bookkeeping Services
Best practices empower you to maximise your outsourcing endeavours, ensuring seamless financial management. Below are some key strategies and tips to successfully navigate this transformative process.
1. Define your needs and expectations
Before acquiring these services, you must know what you need and expect from your prospective partners. Not every company’s needs are the same. Chances are, you will need curated services to help solve your accounting challenges.
Start by identifying what accounting and bookkeeping functions you want to outsource and the level of expertise you require from them. Moreover, you must tailor the tasks according to a budget and set a timeline for the services you expect.
2. Choose a reputable provider
Thoroughly research various outsourcing providers. Consider factors such as credentials, reputation, experience, quality, and pricing, as these elements can affect the service you receive.
Identify a partner that aligns with your needs and objectives. Outsourcing companies in the Philippines, like Select VoiceCom, provide affordable, high-quality services, increasing your chances of a successful and mutually beneficial partnership.
3. Communicate clearly and regularly
Studies show that 72% of business leaders believe effective communication has increased their team’s productivity. The same could be said about outsourced partners.
Create a transparent and open channel with your provider to minimise mistakes. This effectively fosters mutual understanding and efficient collaboration. Schedule regular updates, progress reports, and feedback sessions to keep both parties in sync.
Clear and consistent communication promptly addresses issues, meets objectives, and remains productive.
4. Monitor and evaluate performance
Performance monitoring allows you to see the progress of your partner and how many of your problems they are solving. To ensure they keep their end of the bargain, establish clear, measurable goals and key performance indicators (KPIs) to track their performance and the overall effectiveness of their strategy.
Through this practice, you can make data-driven decisions, identify areas for improvement, and maintain accountability throughout your outsourcing partnership.
5. Review and improve processes
Conduct periodic assessments and take into account feedback, experience, and outcomes. Reviews allow you to identify areas where you can enhance processes to achieve better results.
Implementing quality control measures, such as accuracy and compliance checks, ensures that the outsourcing partner maintains high standards. It’s a proactive approach that keeps your outsourcing strategy agile and aligned with your evolving business needs, optimising efficiency and performance.
Revolutionise Your Financial Strategy Today
Outsourcing has invaluable advantages, from cost efficiency and time savings to expert compliance and enhanced accuracy. With the undeniable benefits of these services, the pivotal question arises: How can you harness these advantages effectively?
The answer lies in partnering with a reputable company, like Select VoiceCom. As an industry leader, we offer high-quality, cost-effective, and flexible BPO services in the Philippines tailored to your unique needs.
With a wealth of experience and a commitment to excellence, we’re your trusted ally in managing your financial operations and more!
Ready to experience the transformative power of outsourcing with Select VoiceCom? Contact us and start improving your business’s financial performance today!