When should I think about delegating accounting? The following analysis and recommendations are for small businesses since if we talk about large companies, it is not possible due to their volume and complexity.
Accounting is the technique used to record operations that economically affect a company or person and result in financial information in a systematic and structured manner.
Every operation affects the company, whether they are transactions, expenses, investments, income, etc.
You should continually assess whether it is profitable to outsource accounting or if the area of your company must be reinforced to be more efficient.
Outsource accounting should be clear about the following:
The process is systematic and structured, and to analyze the possibility of outsourcing the accounting activity, it is first necessary to record the transactions.
Automate the process, train the staff well and verify the policies and controls that we have in place for the system.
We must clarify when the cost-benefit is clear and easily detectable.
It’s just that there are times in companies when certain activities threaten to overwhelm the company’s ability to deal with them.
When it is not possible to face the activities, it is when you think about subcontracting.
In the hands of senior management is the decision to outsource accounting.
However, they will always want the same company to do everything.
They don’t realize that these tasks only steal time and resources, and of course, they limit profits.
Entrepreneurs who do not outsource accounting should be clear about the following:
Have sufficient knowledge of the technology used in financial information processes.
Know each internal operation in depth to know what policies to apply and procedures to authorize.
Be technically trained to understand the external regulations involving accounting concerning tax laws.
Experience that allows you to do all the required paperwork without omissions.
Preparation to determine areas of risk, strategies, and possible fraud.
Increasing efficiency and productivity is why companies delegate accounting services to third parties.
One more benefit of accounting in external hands is that it becomes an option to satisfy the temporary needs of the company without spending the entire budget; that is, third parties offer services with feasibility studies or technical assistance in audits.
The points that you should analyze to decide if you outsource accounting are:
Monthly accounting cost, including technological equipment and training.
The level of delivery service.
If the information is complete and accurate.
Policies and procedures are followed.
Timely delivery of accounting information.
Now take into account that you should only outsource services that are not directly related to the main economic activity of the company.
If you are a software developer, you can outsource cleaning, security, and accounting, but do not outsource the software development tasks since it is supposed to be your core business.
It’s obvious, but it usually happens.
Remember to maintain control of the company or at least be clear about the limits and responsibilities of outsourcing since they may reach limits of nonconformity.
Maintain communication with the outsourcing provider
Communication between parties is critical, closeness must be maintained from the beginning, and this guarantees a good service.
Evaluate if your contact is available when you need it, if the information is timely, etc.
Take into account the information security issue; you must ensure that the company you hire is in order and that it will be willing to sign a confidentiality agreement.
And check that the systems they use are highly secure.
Now if you do outsourcing you must do it for evident reasons.
Do not do it just for the money, do it to have growth possibilities in your company, to be able to dedicate more time to what is relevant, invest in your staff, improve technology and train your team.
A Reliable Outsourcing Provider
If you’re looking for a dependable outsourcing service provider, look no further than Succor Center.
They have a highly trained staff with the ability to take care of all your accounting, sales, and customer service needs. Plus, their prices are very reasonable.