Bookkeeping is one of the central types of business that companies decided to outsource to third parties. This continues to be the trend with more businesses deciding to outsource in 2012, compared to the number of businesses who decided the same in 2011. Many companies have decided to outsource in order to be more efficient.
This surge in the market has caused bookkeeping companies to provide more support for new areas of accounting and represent a different range of companies. More companies are curious to know how outsources can make their systems and technology more efficient, which ultimately results in costs savings for the business.
Some of the most common services that are provided via outsourcing include payroll accounting and accounts payable and receivable. However, more companies are looking for more complex services, such as the creation of forecasts, internal audits and budget creation. About a third of business respondents who use outsourced bookkeeping say that they have outsourced their internal auditing, a higher level function.
One reason for the increase is to provide one central hub for information. Larger companies often have their accounting, procurement of investments and finances prepared by different subsidiaries who work independently. However, this strategy can result in duplicating certain work and making decisions based on limited information. By having an outsourced bookkeeping process, all of this work can be completed at one time and the process can be simplified. This results in less time to close books and the creation of better processes.
Another benefit of outsourcing benefits is that outsourced bookkeepers often have greater technology and tools than companies have in-house. Additionally, these individuals will be accustomed to using this technology on a daily basis and likely be more efficient with it than a person who performs bookkeeping on a part-time basis, such as a business owner.
Bookkeepers who are outsourced may be able to help on additional fronts. For example, they may be able to prioritize accounts receivable and target specific accounts to increase cash collections. They may also be able to help transition a small business from a purely cash basis to one that can accept electronic payments.
Small businesses in particular can benefit from outsourcing their bookkeeping needs. They can decide how much assistance they want and pay for it accordingly. Additionally, they can have these individuals perform important forecasting processes in order to make better informed decisions as their business grows. Outsourced bookkeepers have established solutions specifically for vertical industries.
If you would like to learn more information about outsourcing your bookkeeping needs, a QuickBooks ProAdvisor in your area can provide you with more information.