Whether you’re a startup company as a “solopreneur” or a team of between five and ten, you need to keep track of your financial status. Large companies or multinationals are not spared from doing this because all business organizations are required to report their financial statements in compliance with government regulations.
But the real reason for keeping tabs of finance is for you to monitor how your business is doing, and how it profits from its assets and how it handles its obligations to stakeholders, owners, investors, and financiers. An accounting system takes care of this. It is advisable for a young company or a startup to outsource your accounting needs to allow you to focus on your business operations. Other SMBs are likewise doing the same.
But why outsource? Outsourcing accounting to professional providers will help you focus on your core business processes and lessen the stress on worrying how to go about managing your business finance, what accounting system to use, complying with the Internal Revenue agency, and how to record and accurately report your financial standing correctly. Why remote? Nowadays, many businesses utilize third-party providers of Outsourced Accounting Services for Startups and SMBs | tempCFO which may be holding offices outside yours. A remote one is a good idea.
Let’s first distinguish the meaning of outsourcing and remote. Outsourcing is the delegation of functions to another party that is not connected to the company. Usually, an outsourced provider is remote in the sense that the party operates outside the business premises or holds office elsewhere. Remote, however, as in the case of remote workers, are not necessarily outsources. Remote workers could be employees or contractual workers of the company operating from their offices or their homes.
Flexible working spaces
Innovations in office spaces have made outsourcing much easier nowadays, such as with shared working spaces. This is particularly practical especially when your business is still on the lookout for the best location in terms of accessibility, size, or ambiance. It could also be a solution or alternative to expensive office rentals or when the construction of offices entails a lot of expenses, and your budget is limited.
Changing accounting trends
Innovation and current trends in information technology including cloud technology and accounting software have made life easier. It applies to every industry regardless of size and location. Innovation includes outsourcing activities like accounting outsourcing made more accessible and within reach. Accounting software such as Netsuite, Quickbooks, and the like have all evolved and have the capability to gather real-time financial data from different offices or locations. Thus, outsourcing has become within reach and more efficient. Outsourcing works in synergy with your business, plus you get to familiarize yourself with the latest in accounting software which your provider may allow you to use at a lower cost, if not for free. It gives you an overview of the software without having to purchase it outright, and waste money spending on training your team needs to learn it.
Outsourced accounting providers operate at a lesser cost for the company because there is no overhead cost. The company spends only on the specific professional services or functions and not on the operational cost such as electricity and business space. Moreover, outsourced accounting service providers have a high degree of professionalism since they manage various clients. They have to maintain their integrity otherwise they will lose their clients. Also, the burden of getting a lousy hire employee is lessened.
If local talents are not available
In cases where there are insufficient or non-qualified workers from the same region where your business operates, you can employ the services of remote workers who have expert knowledge of your industry or have specialist familiarity with your business culture. There are likewise providers of human resources that you may also opt for. They can lessen the burden of selecting the right candidate for your company as they have years of experience in handling various workers who may or may not be working remotely.
Better efficiency and professionalism
Certain tasks, such as check processing or payroll processing, eat so much time. Outsourcing takes away the headache and the hassles associated with this. Outsourced providers have a more efficient system that on-time payments of salaries reduce your workers’ stress and keep them motivated. Also, there are decreased chances of fraud or illegal activities since the providers are accountable for each transaction that they are responsible for.
There are many benefits to hiring remote workers and outsourcing your accounting to third-party professional providers. Moreover, your accounting provider could give you better advice regarding updates on business laws or the latest trend. Instead of thinking of it as a burden, try to see it as an efficient solution to your business woes. Various companies and organizations have outsourced their business needs and are working harmoniously without hurting their business pocket.