In the face of massive uncertainty and the digitization of core business operations, organizations, particularly small and mid-sized, have realized the importance of Accounting technology. They know that in order to be resilient and agile, they must adopt technology-driven processes and review their operating model through a technological lens.
Moreover, organizations need to simultaneously develop their digital capabilities to support remote work. In fact, amidst the move away from brick and mortar, the use of artificial intelligence (AI), robotic process automation (RPA), and other digital technologies in the bookkeeping and accounting services has already advanced five years within a couple of years of the pandemic.
The Need for Outsourced Accounting Services
Today, as organizations struggle to stay afloat, outsourcing mundane, day-to-day tasks to sustain and grow the organization becomes crucial. One such function is accounting and bookkeeping. Indeed, managing the organization’s finances through careful bookkeeping requires ample time to complete paperwork, collect dues, and make pending payments. In fact, the global finance and accounting outsourcing market is estimated to reach $US51.5 billion by 2027.
Outsourcing bookkeeping services can help small businesses focus on activities that add business value and save costs and investment in setting up the technological infrastructure, hiring full-time employees, and training the staff in-house. Additionally, organizations can take advantage of the latest tech advancements in the field.
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Outsourced Services for Bookkeeping Management
With the advent of bookkeeping and accounting service providers, organizations can outsource one of the most repetitive, time-consuming, yet vital business activities – bookkeeping.
Outsourcing bookkeeping management to a future-focused bookkeeping service can help eliminate the risk of operational inefficiencies caused by high employee turnover and overhead costs. In addition, by outsourcing bookkeeping services, business owners can increase financial data visibility and free up valuable time that can be spent on the following tasks –
- Employee expense processing
- Order to cash management
- Balancing of ledgers
- Handling of e-payments
- Invoice processing and payments
- Bookkeeping software setup
- Subscription/renewals management
6 Advantages Client Bookkeeping Services Can Offer
Outsourcing bookkeeping services are especially beneficial for small businesses that want access to a team of highly trained professionals and the latest bookkeeping technology while keeping costs low and data secure.
1) Lower costs
Hiring a full-time employee requires business owners to spend on monthly salaries, benefits, and overheads like paid holidays, health insurance, child support, training, office space, IT systems, fringe tax, etc. Moreover, as the business grows, hiring and providing training and benefits for an in-house team of bookkeeping professionals proves expensive.
Outsourcing bookkeeping services nullifies these costs. It provides professional bookkeeping and accounting expertise at a fixed hourly rate or an all-in-one fee structure that is lower than the costs of hiring an in-house team.
2) Helps you stay organized
Amidst the everyday hustle of juggling multiple business tasks, business owners may often see their organization fall behind on one of the most crucial business requirements: ensuring up-to-date and accurate financial records. Outsourced bookkeeping services help you stay organized by keeping your records up-to-date and eliminating errors, oversights, and omissions in financial documents.
Moreover, the business can easily access comprehensive reports that improve operations’ transparency and enable strategic decision-making.
3) Improves compliance with latest accounting requirements
Bookkeeping and accounting come with several rules, regulations, and compliance requirements. Non-adherence to such requirements can lead to hefty fines and penalties – not to mention reputational damage.
An outsourced bookkeeping service provider offers you a team of accounting professionals who are abreast with the latest standards and regulations to keep your records up-to-date to avoid any run-ins with the law.
4) Enjoy the latest technologies at lower costs
Outsourced service providers offer specialized bookkeeping services to multiple clients and allow companies to keep up with the latest technologies, accounting software, and solutions.
If companies were to spend on the latest software individually, they would have to invest a lot more money in acquiring the newest software and ensuring it remains upgraded always.
5) Access bookkeeping data on-the-go
In today’s highly digitized and remote business environment, executives are now distributed. This means data accessibility beyond the traditional “physical office spaces” is the needs of the hour.
Outsourced bookkeeping solutions, by virtue of their offshore operations, allow organizations to access their business’ bookkeeping data virtually on-demand, regardless of their location.
6) Flexible hours of service
An in-house bookkeeping team generally follows a 9-5, 40-hour workweek. If urgent matters need to be attended to beyond this timeframe, or an employee goes on leave, work may get pushed back to a later date.
Outsourcing accounting companies cater to businesses in different time zones and offer extended operating hours and 24X7 services to meet urgent demands.
Sentient Solutions – Future-focused outsourced bookkeeping services for your needs!
At Sentient, we provide scalable Client Accounting Services for businesses of all sizes.
To improve accuracy, speed, quality, and transparency in accounting activities, we leverage a highly-qualified workforce blending onshore and offshore resources, including Chartered Accountants (CAs), MBAs, and CPAs.
Moreover, with 25+ years of experience in the industry, we use accounting technologies powered by AI, machine learning, and robotic process automation (RPA) to perform mundane, time-consuming bookkeeping tasks, eliminate the risk of errors, and drive efficiencies.
To know more about the technologies and services at Sentient, please feel free to schedule a personalized consultation with our experts.