Bookkeeping services are essential for all businesses to guarantee correct operational / financial information. Today, almost every business organization is facing a tough time reducing its operational costs and maintaining its bookkeeping and accounting services to the best possible level. This is important information as required by Regulators, Management, and Investors. Also, it is a legal prerequisite for any business to manage an appropriate book of accounts to guarantee that all relevant taxes are paid and tax filings are made on time.
A recent survey was published in “Small Business Accounting Report”. This survey with 393 small organizations was conducted to create the thoughts of small business owners regarding accounting and bookkeeping. Find below the data to have a better understanding of the business accounting and bookkeeping landscape:
Do you feel you pay too much in taxes?
52%- feel they pay too much in taxes, or are undecided
Do you feel your accountant could do more to reduce your taxes?
62%- of SMBs don’t blame accountants for the tax amount they pay
Percent of companies that outsource these accounting and bookkeeping services
Top accounting challenges facing your business
Accounts receivable collection- 51%
Closing the books each month-28%
Simplify Accounting and Bookkeeping with Outsourcing
“As per Doing business report 40% of small businesses say that accounting and bookkeeping are the worst aspects of running a business. 47% say that the cost of paperwork is the worst, for 23% complexity of compliance and changes in regulations are the biggest headache, while for 13% administrative issues and the waste of time are the most significant pain points.”
It has been seen that businesses fail to understand the need of outsourcing accounting and bookkeeping, which sometimes turn to be a disastrous mistake. As your business grows, you need some sort of help to improve accounting and bookkeeping processes. This is where, one must take a help from accounting and bookkeeping outsourcing company. These companies simplify the complete taxation calculating, computing and return filing process for you.
Simplified Tax Returns
“As per latest SCORE’S report 40% of small businesses spend over 80 hours per year on taxes. Besides this, 28% of businesses spend at least $10,000 a year on tax preparation annually.”
There a number of personal and professional taxes one has to look after every financial year. You need to be updated with latest taxation laws and policies to avoid any mistake while filing the tax returns. This is where, an outsourcing company will help you in calculating and computing your tax returns.
These companies have skilled professionals who will help you in timely computation of tax, hassle free return filing and expert help on all taxation rules and policies. Once you have outsourced your accounting and bookkeeping works, you don’t have to spend your time and money to keep updated with new economic policies, taxation laws, policies and other procedures. You won’t have to waste time in acquiring latest financial information, which may delay your critical decisions.
No Need of Hiring Staff
“Only 40% of small business owners feel they are extremely or very knowledgeable about accounting and finance.
When you outsource accounting, you hire a company who does the job of a regular employee. This means that you don’t have to depend on an individual person for the accounting and bookkeeping works. Also, you don’t have to look after hiring someone or look after his/her health insurance, leaves, payroll taxes or retirement benefits. Outsourcing will automate the complete accounting cycle and will reduce dependency on staff.
Time & Cost Saving
“As per Statista, there were 1.23 million accountants and auditors employed in the U.K. as of 2018. In China, there were 14 million accountants as of 2017.”
One of the major advantages of outsourcing accounting and bookkeeping is the cost-effectiveness of such services. It has been seen that one can save up to 30% to 40% by outsourcing these work. Not only this, but outsourcing accounting and bookkeeping will give ample of time in your hands to enhance your business efficiency, expand business operations and ensure maximum return on investments (ROI). You can use this time to work on improving your marketing strategies and customer services. You’ll be able to focus on new market for business expansion and hit new business opportunities.
Advantages of Outsourcing Accounts and bookkeeping firm
Gain High Level of Accuracy
Outsourcing accounting is a wise step when it comes to ensuring accurate results as high as 99.95%. A professional company will take care of all your business accounting data, which will be handled by experts who will ensure that high level of accuracy is maintained at each and every step. All experts working in such companies are highly skilled and experienced.
Focus on New Clients
When you outsource accounting and bookkeeping, you don’t lose new clients. You have a dedicated team of experts looking after financial operations and accounting works round the clock. You don’t have to always worry looking after for these works. You don’t lose big projects and new opportunities just because you were stuck with previous accounting works.
All renowned outsourcing accounting or bookkeeping firms and staffing agencies pre-screen their employees before hiring to ensure that only skilled minds work on your business accounts. After an extensive testing process, these companies hire people who later undergo training sessions. Hiring an individual with such high level skills, experience and capabilities is quite expensive, and your business might not afford his/her salary.
Mobility & Remote Access
Gone are the days when you need to visit the office of an outsourcing company to have a look on your business accounts. Today, you can access your business’ accounting and bookkeeping data remotely on a laptop, iPad or smartphone from any part of the globe that too in real time. You can access all your business data on the go.
Outsourcing companies use latest online security tools to protect your business accounts and data from unauthorized access. You don’t have to worry about privacy and protection of your crucial and secret financial data. These companies store your sensitive business data in highly protected and advanced computer systems, which can’t be hacked. Such computer systems and protected hardware devices are expensive to buy and maintain.
All thanks to the accounting and bookkeeping firms, you can have an access to latest technology and software solutions. The outsourcing companies are always at the forefront of technology and adopt latest software solutions without giving it a second thought. Your business accounts will be handled using latest accounting software solutions.