3 Advantages of Outsourcing Accounting Function

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3 Advantages of Outsourcing Accounting Function

Sarah Dawson, CFO Tech Outlook | Tuesday, January 05, 2021

Accounting outsourcing provides the ability to promote onshore staff to assist with higher-level work, local staff who are happier, savings on infrastructure and technology, and business continuity.

FREMONT, CA: There are many good reasons to outsource bookkeeping and accounting services. Some of the more known ones include increasing capacity at the firm, growing business and cash flow instead of carrying out the day-to-day work on-site, and a better work-life balance. The benefits don’t end there. Outsourcing provides other advantages that don’t get as much credit. Here is more about the lesser-known advantages of outsourcing accounting functions.

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• Promoting Local Staff

When firms first began their outsourcing journey, they may have asked their staff to list the tasks they perform that can be delegated to a global team. If the global team is now completing those tasks, the local team has received valuable time back. This is when firms can use to train and promote local staff to help with higher-level work, such as strategies to attract new customers or manage junior local staff. Promoting also shows newer employees; there are opportunities for growth at the firm.

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• Making Staff Happier

By assigning tasks, firms free up their local staff to complete their work at a manageable speed, minimize errors, stay on top of their responsibilities, and enjoy an improved work-life balance. This can result in less staff turnover, and employees just might be happier. If firms choose to train and promote one or two onshore staff members to help firms scale their business, this can also increase their job satisfaction.

• Save Money on Infrastructure

When firms hire local staff, they have to provide them with a place to work, a desk, and computer equipment. Even if they work from home, firms may still need to offer them a laptop and business mobile phone. Firms won’t have to worry about fulfilling these demands cost-effectively when firms outsource the bookkeeping and accounting since the outsourced accounting service provider will offer the global team space and equipment they require to get the work done. This means firms save on space and costs.

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