Research from Chief Financial Officer (CFO) Magazine Australia reports increased reliance of small and medium-sized enterprises (SMEs) and multinational companies on outsourced finance and accounting services. Some of these services are tax planning, financial reporting, auditing, strategic planning, and succession planning, to name a few.
A different study by Dr Egiyi Modesta Amaka and Florence Alio, PhD, highlights how cost reduction brings more opportunities for profitability and growth by utilising external resources. However, making an informed decision begins with analysing the benefits and risks of outsourcing accounting services; here’s why:
Advantages of Outsourced Accounting Services
Access to Latest Technology
Technological advancements in accounting allow firms to embrace cloud-based accounting, resulting in higher efficiency, mobility, and effectiveness. In addition, it also enables accounting firms to provide a more efficient way of monitoring their businesses’ performance.
World-class software an excellent accounting service provider should have:
- When an accounting firm is a Xero partner, it’s a green flag because it’s Australia’s number 1 cloud-based accounting software.
- Branch General Ledger (BGL), which is the world’s leading self-managed super funds (SMSF) and Australian Securities and Investments Commission (ASIC) corporate compliance software.
- Mind Your Own Business (MYOB), a cloud-based accounting system.
Reliability and Flexibility
Outsourcing a reliable accounting service ensures providing professionals with relevant certifications, such as Certified Public Accountant (CPA) and Certified Financial Analyst (CFA). These licensures ensure that vital fields like accounting are only practised by qualified professionals updated with the latest standards and requirements.
Working with a team of flexible accountants,cater to the needs of your business, regardless of the size and industry.They provide high-quality services like bookkeeping, corporate compliance, and strategic planning to help save taxes and mitigate risks. They will also integrate these services with valuable experience, accounting expertise, and technological systems to craft a solution well-suited to your company’s needs.
Cost-Effectiveness
Outsourcing accounting services removes the costly need to hire and support employees. Hiring the best accounting and business advisory firm provides productive tools, services, and opportunities for growth at a reasonable price.
Disadvantages of Outsourced Accounting Services
Less Control
Hiring accounting firms means you authorise them to take over the financial and accounting functions of the firm. Choose the right accounting service provider who will define roles and procedures to set expectations and boundaries communicatively.
Exposed Sensitive Financial Data
For accounting firms to work for you, you must give them access to your company’s sensitive financial data. Working with the right accounting service provider minimises the risk of compromising and breaching confidential business information.
Conclusion
Outsourcing accounting services benefits businesses but entails risks, highlighting the importance of choosing the best service provider.
Enjoy the advantages of outsourcing accounting services, like access to the latest technology, reliability, flexibility, and cost-effectiveness, and contact DFK Laurence Varnay today!Easily submit your company’s accounting reports, taxes, financial statements, and compliance requirements. In DFK Laurence Varnay, your accounts are in the hands of certified accounting professionals proficient in modern technology.
