What Is Provided by an Outsourced Service in Accounting?

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Accounting is an integral part of a business. Accounting in small business helps in determining how well the company is doing. It tracks the money coming in and going out. The accounting department records the daily transactions, analyzes patterns, dealing with the payroll and taxes directly. A number of US businesses are outsourcing their accounting practice to a third party provider. They are experts who help minimize the cost and provide superior results. Therefore, businesses can focus on their core objectives and increase productivity. 

What is outsourcing:

Outsourcing is a business practice where one party hires the other party to perform business functions or handle operations. The third party arranges for its workers to perform the task either on site or at external locations. 

What is Outsourced accounting?

Outsourced Accounting is a service which provides a full accounting department experience for all businesses. The accounting department handles day to day transactions like accounts payable, receivables, payroll, managing financial reporting and many other services. 

Following are the services provided by the outsourced accounting firms:

• Real-time transaction processing
• Sales invoicing
• Vendor bill payment
• Payroll processing
• Management reporting
• Budgeting, forecasting, KPI trending

1.      Financial Accounting Services:

This department keeps track of the company's financial transactions. The transactions are recorded, summarized and presented in a financial report such as Income statement and balance sheet or as requested by the company.

2.      Payroll Accounting Services:

Outsourced accounting services provide a complete peace of mind and help achieve your business goals. This service involves recording of employees compensation such as bonus, wages, salaries, commission etc.

3.      E-accounting services:

This is the online and internet technologies for business accounting functions. It includes electronic embedment of law and a traceable accounting process which helps companies to speed up the latest regulations while maintaining the records clean and organized.

4.      Forensic Accounting Services:

As the name suggests, the companies specializing in this accounting services use their accounting skills to investigate fraud while analyzing the financial information uncovered from a legal perspective. Forensic accounting services not just eliminates and detects fraud but also helps plan the processes to prevent future references.

5.      Tax Accounting Services:

This type of accounting services focus on tax planning, preparation of tax returns and filing taxes. Companies must be well-versed with US accounting laws as the USA has a comprehensive set of accounting principles for tax purposes.

6.      Financial Statement Preparation:

Financial Statement Preparation involves preparation of balance sheet, income statement, cash flow statement etc. It involves pure accounting work .

7.      Bookkeeping:

Outsourced bookkeeping services includes billing of goods and services, recording receipts from customers, recording invoices from suppliers, paying suppliers, entering bank details etc.

Outsourcing Accounting services are applicable if any one of these applies to you:

• You are spending too much time managing your books while neglecting other aspects of your business
• You are cutting corners because you don't really understand how to do bookkeeping properly
• You want professional-grade accounting, but it's either too costly or you don't need full-time accounting services
• You need "at a glance" financial reports to stay informed about your business
• You aren't afraid to ask questions about financial data you don't understand
• You want the flexibility to examine your accounts whenever and wherever you’d like, combined with the peace of mind that your books are being maintained by dedicated professionals

Benefits of outsourced accounting services:

Many companies outsource their accounting services in the USA. Outsourced accounting has following benefits:

1.      FREEDOM 

Work on your business while we handle your accounting through the use of secured cloud-based accounting software; which enables you to have access to your accounting records from anywhere in the world at any time.

2.      REAL-TIME INFORMATION

Your accounting is processed as it comes in. You work with the companies  on what you want to do next. We can work on the same data at the same time, ensuring it is current and up-to-date; which puts actionable and current data at your fingertips.

3.      ELIMINATE HIRING COSTS

It’s merely clear that when a company outsources its accounting practice, it saves  a lot of money. It’s expensive to hire, train, and maintain an accounting department. Outsourcing the accounting function eliminates hiring and training costs. Company can focus on its core competence of the business and can streamline operations to reach its goals faster. 

4.      ENHANCE BUSINESS CONTINUITY

Valuable knowledge walks out the door when a key accounting personnel leaves your company. The risk of knowledge loss and enhanced business continuity with outsourced accounting.

5.      SECURITY

Your accounting data is stored on secured servers in the cloud protecting against physical data loss, and to enhance business continuity and disaster recovery. Every third party has security policies. They also sign confidentiality agreements to ensure clients that their data is safe and secured.

Conclusion:

Before you think about outsourcing your accounting practice, consider the above mentioned points, scrutinize, research and take the decision.

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Created on Jun 1st 2020 07:19. Viewed 299 times.

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