Outsourced accounting services have expanded steadily over the years. Based on recent statistics, outsourcing in financial services in the US will continue to rise by 7.5% annually. The increase is due to businesses reorganizing their operations and recuperating from the consequences of COVID-19.Many businesses are now leaning towards outsourcing. In fact, 71% of CEOs in the financial services industry outsource or offshore parts of their services.Before you jump into outsourcing, there are a few things you need to jot down. So let's begin first with accounting outsourcing services!
What is accounting outsourcing service?
Accounting outsourcing is a service that provides small firms with comprehensive accounting department expertise. Companies outsource their day-to-day transaction coding, accounts payable, accounts receivable, payroll, management financial reporting, and many more services in this service.Outsourced accountants assist firms in staying on track with payments, financial development, bookkeeping, and other company costs. In addition, they advise small companies on the optimal investment and structure for their firm to achieve financial stability.With experience and expertise, an outsourced accountant's market value rises. In the United States alone, the typical hourly pay for accounting and bookkeeping services ranges from $12 to $25. But you can save up on costs if you outsource to the Philippines.
What are the different types of accounting services?
1. Public Accounting
Public accounting refers to services that provide accounting knowledge and services to businesses, governments, non-profit organizations, and individuals. The size of public accounting companies varies, from solitary practitioners to a few large worldwide firms with hundreds of thousands of CPAs across the world.Certified public accountants, or CPAs, are frequently engaged in public accounting. They analyze a company's financials for public disclosure as a third party. In addition, they may also prepare tax returns for individuals and businesses. Audits, consultancy services, and tax advice are some of their duties.
2. Management Accounting
All accounting aimed at informing management about operational business KPIs is referred to as management accounting. It analyzes data to assist management in making well-informed decisions that reduce risk and increase profit for the company.Management accountants analyze performance and plan to predict, budget, and measure them, then deliver them to top management to help with operational decisions. In short, they investigate and explain the "why" behind the figures reported.
3. Governmental Accounting
To simply put, this service records and manages all financial transactions incurred by the government. Also, it audits government agencies' records as well as private firms and people that pay taxes.Government accountants also conduct audits of firms that are subject to various government laws. One of which is corporations that provide government contract services or non-profit organizations that receive government funding.
4. Internal Auditing
Here, accountants conduct internal audits to evaluate a company's controls and identify fraud, waste, or abuse evidence. They also analyze risk management and verify that it is efficient, effective, secure, and compliant.An internal audit, for example, might identify hazards to the organization's reputation if it uncovers employee safety breaches or instances of unjust treatment.
Why outsource accounting services?
Having an outsourced accountant for your business can give you real-time updates on the condition of your finances. Below are some of the benefits of having outsourced accounting services.
Maintain lower costs
Hiring an outsourced bookkeeper is less expensive than employing an in-house bookkeeper. One reason for this is the absence of "hidden costs" associated with keeping a full-time workforce. These hidden costs are not limited to sick pay, vacation pay, benefits, and taxes.
Maintain lower costs
Hiring an outsourced bookkeeper is less expensive than employing an in-house bookkeeper. One reason for this is the absence of "hidden costs" associated with keeping a full-time workforce. These hidden costs are not limited to sick pay, vacation pay, benefits, and taxes.
Tap into world-class expertise
Outsourcing allows you to access world-class accounting and business solutions. The work output of outsourced accounting services follows high-quality standards. Not only does the function of accounting demand it, but the professional accounting service provider's reputation also depends on it.
Access to the latest technologies
Outsourcing companies have cloud-based technology platforms to provide you with real-time, automated reporting. Outsourced accountants use it to implement processes in your company. It is one of many ways to increase efficiency in your company.
Flexibility to scale up human resources
An outsourced solution allows you to ramp up accounting services as needed. During tax season, for example, your company may require a large volume of assistance. As a result, you may need a partner to handle half of your operation.
Improve your operational efficiency
Your business can do more in a faster turnaround time with outsourcing. For example, when you let a skilled accountant work on your finances, you save tons of time. In addition, you will have enough time to focus on your core business functions.
How to outsource accounting services?
Before you look for an accounting service provider, you need to identify first what expertise your business needs.There are a variety of specialty areas in accounting. Here at KDCI, we have the following specialists you may integrate into your company.
Bookkeeper/Accountant
Our bookkeeper/accountant can handle your entire accounting process and record financial transactions.If financial statements confuse you, that's a sign to hire accountants. They can coach you in all things financial.
Accounts Payable Specialist
If your company struggles to manage your expenses, it's time to hire an accounts payable specialist.Accounts payable specialists process payments, verify invoices, and perform account reconciliations.
Accounts Receivable Specialist
The primary duty of accounts receivable specialists is to receive payments on invoices. Therefore, you should hire these specialists to increase your accounts receivable turnover.Moreover, they oversee billing operations and processes to ensure the collection of account balances.
Financial Statement Prep
This service combines accounting data into a standardized set of financials known as financial statements. In general, financial statements reflect a company's performance, liquidity, and cash flows.Banks, for example, can use financial statements to assess the ability of your company to pay debts.
Revenue Accounting Expert
This expert's primary responsibility is to monitor accounts payable and receivable strictly. They also keep track of tax deductions and costs, provide progress and revenue reports, and keep track of all transactions.If managing revenues is challenging for you, there's no doubt you need a revenue accounting expert.
KDCI's Outsourced Accounting Services
Are you overwhelmed with numbers, invoices, and receipts? Stop trying to do more with fewer resources and outsource to a reliable service provider!Here at KDCI, we offer offshore staffing solutions for finance and accounting. In addition, we provide value-added accounting services tailored to meet your business needs.Are you ready to outsource? Then, click the button below to get your FREE consultation with our experts!Contact Us
