Outsourcing crucial yet non-core activity like Bookkeeping & Accounting is extremely important for every Small and Medium Business looking to thrive in this global economy.
If you are a start-up founder and entrepreneur who is looking to ramp up your business growth there surely comes a point where outsourcing can help you improve your overall accounting performance. Given Accounting is a broad term with many key functions it helps to have prior information about outsourced accounting services. So in this blog here, we are going to list out most accounting process that you are better off outsourcing to reap maximum benefits form a back-office accounting firms.
If you are a start-up or Small and Medium Business then here are 4 accounting processes that every small & medium business must consider outsourcing:
Bookkeeping Services: Yes, we get it Bookkeeping is a mundane task that demands a significant amount of your time and accuracy, but it’s fundamental for any business to flourish with the help of efficient accounting. In a way it is like exercise, it is exhausting but healthy and mandatory for optimized living.
While you can outsource exercise you can certainly Outsource Bookkeeping for better accounting performance, because not every business is blessed with a dedicated bookkeeper with all-around expertise and experience. By Outsourcing Bookkeeping, a business can drastically improve their bookkeeping performance, save time, cost and are better positioned to focus on their business better if not focus on other important and complex accounting activities. The fact that the most successful business that can afford their dedicated bookkeeper choosing to outsource bookkeeping functions indicates the importance of outsourced bookkeeping service.
Bank & Credit Card Reconciliation: If you are a growing business with ramped up business transactions then you might have already experienced the wrath of the tedious, time-consuming and complicated bank and credit card reconciliation which is natural. Matching and balancing the bank and credit card transactions with that of internal financial records is a crucial step in transparency, financial control by avoiding unusual financial transactions, prevent administrative problems and other financial discrepancies. And a business without regular and accurate reconciliation is ripe ground for all the above problems.
Bank and credit card reconciliation is a crucial bookkeeping and accounting function that requires your team to spend dedicated time on the reconciliation process. In most cases, the reconciliation sucks in more time and efforts from the team and most businesses do not factor in enough tough or resources for reconciliation making it perfect to outsource to competent back-office accounting firms. By taking the assistance of certified analysts who are guided by standard procedures business can have their records verified accurately while freeing up their resources, saving time and can recording better ROI.
Accounts Receivable: The life-blood of every business is Accounts Receivable which has to be perfectly managed whether to get by the day to day operations or invest in growth. However, most businesses falter in Accounts Receivable collection and management leading to a poor cash flow cycle followed by a cash crunch. As unpaid invoices pile up, the business is forced to take up traditional bank loans or even Accounts Receivable financing which further increases the risk.
Understandably, Accounts Receivable management is a tough job for small businesses which has ramped up their sales and revenue. From order management and invoicing to remittance processing, cash application and posting, customer collection management, refunds and settlements, crafting an efficient Accounts Receivable strategy according to your cash requirements need expertise, experience and also technical assistance. So if you are a small and medium business looking to ramp up your operations, outsourcing Accounts Receivable is the best thing you can do to improve your cash flow – cash is king, isn’t it?
Accounts Payable : It is estimated that around 82% of businesses fail due to poor cash flow management. While Accounts Receivable takes care of the revenue, the core of the total cash flow of the business is Accounts Payable. The process of strategically managing your bill payment is essential to control the cash flow and this has to be performed in close coordination which most businesses commonly fall short of.
From negotiating payment terms with vendors to reconciling payments, capturing early payment discounts, handling exceptions Accounts Payable must be perfectly streamlined and executed which requires top-of-the-line expertise, experience and also technology which costs a lot for businesses. Without guaranteeing any results. At the same time, back-office accounting firms come with a fully-equipped technology stack, years of industry experience, skill and all the tools needed to set up an efficient Accounts Payable process. If your business is booming and a dedicated Accounts Payable department is not practical for you, outsourcing Accounts Payable is the best step your business can take in this economy.
Choosing the Right Back-Office Accounting Firm is the Key:
Outsourcing improves your accounting performance, save time you time and money, frees up your resources to improve their productivity to help you focus on your core business activity and also this only possible when you partner with the right accounting firm with expertise, experience and track record, like us folks at Outsourced Bookkeeping.
Equipped with a team of industry experts in Accounts Payable, Accounts Receivable, Tax preparation, Bookkeeping & Accounting Services & QuickBooks Services, Outsourced Bookkeeping has been offering Outsourced Accounting Services to types of business for years now. If you are looking for a best back-office accounting firm, to outsource your accounting functions you can find more information about our services here: https://outsourcedbookeeping.com