What Is the Actual Cost Of Account Outsourcing Services?
What Are Outsourced Accounting Services
Accounting departments of accounting firms and practices conduct day-to-day accounting services for their clients, such as payrolling, invoices, bill payment, and transaction processing, to name a few. However, accounting practices like yours must deal with additional loads as your client’s business expands. If you expand your in-house accounting team, such a situation will be easier, but that will strain your budget.. In that case, you can get a helping hand from service providers who offer outsourced accounting services.
Outsourced accounting services are actually offered by accounting service providers. Under them work highly skilled and professional accountants, bookkeepers, and tax consultants who will handle all your accounting tasks on your behalf, thus reducing the load on your in-house team.
Apart from that, you will only gain multiple benefits by availing of outsourced accounting services offered by service providers, which we will detail in this blog.
6 Benefits of Outsourced Accounting Services
The benefits offered by outsourced accounting services are so numerous that they are hard to summarise. Still, we have narrowed it down to 6 significant benefits to save you time. Let’s understand these benefits in detail.
Access to High-Level Experts
Many accountants have slogged for years to gain practical experience, and getting such experience in your in-house team will not go light on your budget. However, you can get access to experienced accountants once you outsource accounting to an accounting service provider.
With access to experts through outsourcing, you will not be required to hire and train new resources. With expert advice and the proper support at the right time, you are helping your clients in business growth and expansion at a fraction of the cost.
Elimination of Inaccuracies
Any inaccuracy in accounting, such as miscalculations in tax calculations, can lead to costly mistakes, which will lead to clients making bad investment decisions. While human errors cannot be eliminated, your clients may incur costs and your accounting practice’s reputation can suffer due to such mistakes.
Once you have outsourced accounting to a specialist service provider, an experienced accounting specialist will work on your behalf using advanced tools and accounting software. Thus, they will reduce the chance of human error and perform complex accounting tasks without burdening your resources.
Reduction of Cost
When we talk about staff expenses, we include hiring and training expenses, salaries, benefits, and supporting infrastructure. Outsourcing can help avoid or reduce these expenses. One of the significant benefits of outsourced accounting is that it removes the requirement for hiring additional staff, thus reducing staff-related expenditures. Additionally, outsourcing allows you to pay solely for the services you need, thus cutting down on expenses that would arise from hiring a full-time or part-time employee.
Saves Time
While handling multiple small clients, a considerable amount of time goes into their accounting, such as bookkeeping accounting. It keeps your in-house team occupied and does not allow them the time to look into other important work. Instead, you can outsource accounting to a service provider. This way, your in-house team will save considerable time, and you will be handing the tasks to experienced professionals. On the one hand, your in-house team saves time; on the other, they can utilise the time saved to improve and expand accounting services.
Improved Tax Compliance
Keeping your clients’ taxes up-to-date and complying with HMRC regulations must be your top priority to avoid legal hassle and penalties. However, it also has the potential to keep your in-house team completely occupied, which you will try to avoid at all costs. If you’ve hired a professional service provider for accounting outsourcing, specialized professionals will manage your payroll, VAT, and corporation tax responsibilities. Plus, they will ensure full compliance with making tax digital (MTD) requirements.
Once you have outsourced, you are reducing the stress of your in-house team regarding meeting tax deadlines, thus reducing the instance of rushed tax submissions and removing the chances of penalties, legal issues, and disrepute.
Get Accurate Financial Reports
Suppose you have already outsourced accounting to a professional accounting service provider. In that case, you must have experienced getting all the financial reports from them with a click of a button via the portal. You will get access to detailed profit and loss statements, historical monetary data, and cash flow history. In this way, you’ll receive a detailed report of your client’s income and expenses, which you can then forward to your client. Providing accurate and detailed reports to your clients enables them to make informed and right decisions at the right time.
We hope that these benefits have helped you in understanding outsourcing better.
How Much Cost of Account Outsourcing Services?
This question must have come to your mind, and the answer is that it depends on what kind of package is on the table and how many tasks you want to outsource. Also, each outsourcing service provider has its own customised package that includes services you may like. We will discuss in detail some models offered by service providers.
Full-Time Employee Model
One of the most popular outsourcing models is where you obtain experienced employees from a service provider at a fixed monthly price. Under this model, your clients have much control because they can decide on the plan and work for the full-time employees. The outsourcing service provider will verify the monthly completion hours actively. If you have a high volume of work, choosing hourly rates is preferable, as it enables better budgeting and reduces the likelihood of cost escalation in outsourcing accounting services. Multiple professional accounting outsourcing service providers, such as Corient Business Solutions, offer this model.
Onshoring Model
In most cases, outsourcing involves offshoring, but certain situations necessitate onshoring for meetings, addressing specific queries, and quick discussions. Many leading accounting service providers offer this model, and the cost will depend on your client’s requirements. Also, there are multiple accounting service providers who are open to price customisation.
Practice Outsourcing Model
This model is a perfect blend of offshoring and onshoring, thus providing you with a seamless experience. Under it, you can find dedicated individuals who will work exclusively for you, delivering the necessary support to your clients. Moreover, specialized assistance will enhance your credibility among clients by effectively managing complex accounting matters.
Conclusion
Through this blog, we are helping you understand the cost you might incur, which is negligible when compared with hiring and training a big in-house team. So don’t hesitate to outsource your important accounting tasks to an accounting service provider. Now that you know about the cost advantages of outsourcing, it is important to choose a professional and experienced service provider such as Corient.
We specialise in offering tailored accounting services for accounting practices. Our teams have vast experience in multiple payroll applications, such as Sage, Brightpay, Xero, Moneysoft, Earnie, Star Payroll, and several others. Our bookkeeping, payroll, year-end, and VAT outsourcing services are designed to give your practice an edge in the market, thus saving you time to invest in other important tasks. We can connect at your convenience on a call or online meeting to discuss our services in detail.