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Myths about Outsourcing Accounting Services

October 1, 2022by MAS Editorial Team0

Why are there still many doubts about outsourcing when the world is opting it out as a reliable resource? What are some of the most common myths about outsourcing accounting services that stop you from hiring experts across the world?

 

Let’s begin

Are you a new in Start-up CPA firm with big hopes, dreams and attempting to establish your accounting firm in the competitive markets like the US, UK, or Australia? Do you wish to continue providing perfect service to your clients?

Then, you must have to compete with a vast market filed with various accounting firms. All this can be done if you engage skilled employees at lower rates, lower overhead costs, and increase productivity. This can help you in investing the savings towards attracting more clients to your newly accounting firm. One such solution to save the costs is outsourcing your accounting work to the market.

Now, starting with a very small introduction of Myth.

Myth: – A myth is a traditionally, historically story that is constituted. The purpose of myths would have been to explain natural phenomena. However, there are no proofs or facts which can justify such myths and thus, they are often concluded as false claims.

Let us bust some of the common myths about outsourcing accounting services.

 

1. Outsourcing Will Lead to Job Losses

Many employees are scared by the word “outsourcing” as they usually believe it to indicate that their positions are being eliminated. But it’s not 100% true. Here are a few examples of how an accounting function in a business might function. And how that might change if you outsource:

Example: Everything is managed by one accountant. Now, let us assume your company has an accountant on staff who is in charge of all financial matters.

That person is interested in developing new accounting frameworks to estimate future cash flow and would love to take care of your company’s statutory compliance. However, they are too busy with day-to-day activities like paying bills and reconciling credit card statements to do so. If you outsource your accounting to a specialist firm, your accountant can concentrate on the higher-level accounting duties. This can affect the success of your business while the outsourced firm handles the details.

 

2. Outsource is very Expensive

While some people frequently associate outsourced accounting businesses with costly consultants zooming all around country, the truth is that outsourcing can really lead to significant cost benefits.

Without sacrificing quality, you’ll have much cheaper access to experienced bookkeepers, accountants, and finance professionals. You save on infrastructure costs, employment taxes, and other unexpected costs because these professionals won’t be on your payroll but rather the payroll of the outsourcing company. You can pay for the services and time you require. And later, you can adjust that as your firm expands.

 

3. Lack of Security

Whenever it comes to cyber security, many people believe that outsourcing is unsafe. However, outsourcing accounting firms take considerable steps to ensure data protection. They regularly audit their systems and make sure there are no breaches.

 

4. Lose control of accounting business

Accounting firms that think about outsourcing some of their tasks become frustrated and worry that they might end up losing control of their company.

This myth typically arises from the idea that it is much more difficult to supervise and manage work that is being done in a different country. If you choose a trustworthy professional outsourcing provider, it should not be a major problem.

 

5. Time Management becomes difficult

Although you might imagine spending hours on the phone with an outsourcing company to teach them, outsourcing will free up a lot of your time. With reliable back-office support, you can concentrate on duties that add value and generate income, like business development and strategic decision-making. You can focus on the tasks more crucial to expanding your firm while the outsourced company takes care of your financial needs.

Many companies say that when they start outsourcing, their sales rise because their internal employees could focus on tasks apart from handling the accounting functions.

 

Hey, just wait!!! Don’t go to the next tab of your browser just yet.

 

Here are some key-points that you must not forget.

It is possible that some business owners have had bad experiences at the initial stages of their business. However, it doesn’t mean that every experience is the bad experience. You should try it for yourself and understand the benefits. There is no need to hold onto other individuals’ stories.

Also, if you are struggling from work stress and need to boost your productivity, then check out 5 Ways to Improve Productivity at Workplace.

 

Written by – Tushar Khurana

 

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