Analyzing the needs of your business and identifying your solution options is the most intelligent course of action you will take towards steering your way to growth and potential success of your company.
Navigating today’s globalized business environment can be overwhelming. The need to answer the demands of technologically empowered consumers — who have tons of options at their fingertips to replace your product or service, is a challenge.
For this reason, companies are constantly on the lookout for strategies to increase efficiency while minimizing cost, optimizing resource allocation, and outsourcing experts in their respective fields to solve several business blockers and outgrow the competition.
Over the years, the Business Process Outsourcing (BPO) industry has been where these companies are leaning for assistance in their operations, getting their hands on infrastructure and experts in their industries for less than what otherwise would cost them a lot of money.
In this blog, we will flesh out the reasons why Outsourced Accounting is now a popular service in the BPO industry, which is reported to be a staggering $50 billion dollar business. Hopefully, this will also help you assess its potential benefits and impact on your business; and ultimately guide you into an informed decision whether this will be an option for you or not.
It offers affordable, expert-handled solutions
A primary driver of the shift towards an Outsourced Accounting team is cost-efficiency. Compared to their onshore counterparts, a remote Accounting unit offers an affordable solution for you.
Engaging a third-party provider can be significantly less expensive than maintaining an in-house team, especially for small to medium-sized businesses (SMBs). This is due to reduced overhead costs such as salaries, benefits, recruitment, training, and office space.
On the other hand, these remote Accounting experts are trained and experienced for their roles with Certified Public Accountant status from their respective countries, which guarantees competency.
Accounting is a complex and highly specialized field in which companies are constantly required to comply with the latest financial regulations, which are constantly evolving. Outsourcing allows companies to leverage the knowledge and expertise of accounting professionals to keep up with these policies.
It promotes technology-based innovation
Remote accounting services often go hand-in-hand with the latest technology, providing companies with access to advanced accounting software and tools. Partnered with professionals that are proficient in using these cloud-based accounting platforms.
Some of these cloud-based accounting platforms are Xero, Intuit QuickBooks, Oracle Netsuite, MYOB, Freshbooks, and Saasu. Outsourcing companies regularly conduct continuous training for their roster of accountants to assure expert-level aptitude for such platforms.
Similarly, the emergence of Artificial Intelligence usage in the workplace is also being integrated into the work process. This technological edge allows businesses to automate tedious tasks, reduce human error, and gain real-time financial insights, leading to more informed decision-making.
Through outsourced accounting, you will be able to be free from the hassle of integrating such technologies into your business, which also requires up-to-date knowledge every now and then to keep up with emerging trends, translating to more expenses in the long-run.
It presents scalability and customization
Accounting needs can fluctuate depending on the business cycle and Outsourcing offers the flexibility to scale accounting resources up or down as needed, without the long-term commitment of full-time staff. This is useful for businesses experiencing rapid growth or seasonal fluctuations.
Whether you need a full-sized Accounting team or specific service needs, Accounting Outsourcing has different offerings tailored to your business endeavor.
Some of the services and roles offered in Outsourced Accounting are:
- Accounts Payable specialists
- Accounts Receivable specialists
- Collection specialists
- Payroll and benefits specialists
- Tax accountants/tax preparers
- External Auditing
- Internal Auditing
- General Accounting
With the state-of-the-art recruitment process of BPO companies, only the qualified candidates will be hired to fill these roles and provide services to clients in need. In the Philippines, for example, there is an abundance of highly-skilled accountants with great English communication skills joining the Outsourcing industry.
Outsourced Accounting is gaining momentum due to the array of benefits it offers: cost savings, access to expertise, technological advancement, scalability, and a sharper focus on core business functions.
In the face of an increasingly competitive business landscape, it’s easy to see why more and more companies are jumping on the outsourcing bandwagon.
Although Outsourcing has gained a bad reputation among some hyper-nationalists who are against businesses looking to offshore their business operations to save money. It cannot be denied that it is now a necessity driven by globalization.
Why? It encourages a win-win situation for businesses aiming for growth and expansion; and more economic opportunities for countries offering Outsourcing services. More jobs for people around the world, and increased global competitiveness are also being realized.
As always, businesses should evaluate their specific needs and circumstances before jumping headlong into Outsourcing. It’s essential to partner with a reputable BPO company that aligns with your business goals, culture, and operational needs to fully reap the benefits of this growing trend.