December 8, 2022

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Reasons to Use an Outsourced Bookkeeping and Accounting Services

3 min read

Outsourced accounting and accounting services are a rapidly growing trend nationally. The market has shifted over the past several years and businesses are searching for methods to get rid of expensive administrative overhead expenses. 

Business owners are downsizing their offices to decrease rental fees; more and more employees are being hired to a part-time foundation. Firms are currently trying to utilize outsourced companies which can offer professional services at half to a third of the price it charges a company to employ workers in-house.

One among those outsourced services includes the outsourcing of bookkeeping and accounting solutions. There’s a significant reason for this shift, overhead costs.

If a company pays $15 per hour, times 40 hours per week, it is going to cost that business $600.00 per week. Take $600.00 per week times 52 weeks in a year that equals $31,200 annually. Divide $31,200 per year by 12 months in a year and you will find that it costs the organization $2,600 per month to pay that employee.

The list goes on and it often increases overhead costs appreciably.

By outsourcing accounting and accounting services with a professional accounting and bookkeeping firm, you will eliminate these costs and cut hourly prices in half. Instead of paying $31,200 per year, your prices might be cut by as much as $15,600 each year on just the hourly prices alone. When you add an employee’s total overhead costs and matching taxes, outsourcing the accounting functions might wind up saving a company an additional $800 to over 1,000 dollars per month.

As you can see, outsourcing the bookkeeping and accounting functions plays a major role in eliminating overhead costs. Yet many small companies still require the support of a secretary who can answer the telephones professionally and manage administrative duties. To be able to keep the secretary busy, many businesses may decide to have their secretaries care of all of the bookkeeping and accounting functions.

Unfortunately, turning a secretary into a bookkeeper is a big mistake; it causes difficulties, mistakes, and creates inaccuracies. The accounting and accounting functions need to be accurate for management and reporting functions. The expense of coaching a secretary for a bookkeeper is just another extra cost a little company may not have the ability to take care of.

Frequently, when the secretary is educated they will then seek employment elsewhere.

They’re also legally accountable to behave by the laws governing the handling of businesses’ financials.

What about outsourcing these services to some third-world nation? Even though this might seem like a fantastic idea at first, companies repeatedly encounter several issues surrounding the transfer of information and the security of their financials. Communication is also a contributing element that leads to additional strains on the business.

Outsourcing bookkeeping and accounting purposes to third world countries may save businesses money initially; however, businesses take a much higher risk and it might wind up costing them more later on. When errors are made and also a company needs an accurate set of books fast and a person they can talk to right away, outsourcing those services to some other nation becomes a real issue.

Hiring an outsourced bookkeeping and accounting service provider within the USA eliminates these problems. Companies can still work online remotely but with higher degrees of security, that if compromised, can be retrieved inside the authorized boundaries of our U.S. Government. Communication, timeliness, and accuracy of information will also improve dramatically.

If your business is searching for ways to decrease costs without losing the professional services you trust and expect, look at using qualified bookkeeping and accounting services as an alternative strategy in today’s market.

Learn how to reduce overhead costs by outsourcing the bookkeeping and accounting functions today. Provided that you’ve got access to the internet, we can support businesses from any location in the world.

Accounting and Bookkeeping for Guelph Businesses

Whether you are a large corporation, a small family business, or a growing startup, your own accounting — and ensuring it’s all correct, on-time, and protected — matters. Irrespective of your business’s size or your own industry, if you are looking for business accounting in Guelph, our Dedicated Solutions Guelph expert team will help, visit our website for more information.