An Introduction to Outsourced Accounting: A Win-Win Proposition for Small and Growing Businesses

Recently, outsourcing has become a popular option for several businesses and companies seeking to increase their operational efficiency and profitability. Also, it has become more common for teams to work remotely with digital solutions and become more involved in day-to-day business affairs. The same can be said about accounting and bookkeeping. As organizations face an increasing shortage of accountants and other essential accounting professionals in the USA, outsourced bookkeeping and accounting services have become a popular option that is here to stay. This blog breaks down what outsourced accounting is, who it is best suited for, and its benefits. 

Outsourced Accounting: An Introduction 

Outsourced accounting involves hiring a third-party agency or organization (outside your company) to look after your accounting and finance function. A breakdown of this function includes bookkeeping, payroll, financial reports, accounts receivable, accounts payable, and other accounts-related services.  

Some Benefits of Outsourced Accounting 

Hiring an outsourcing firm for outsourced bookkeeping and accounting services brings several benefits. Some of the benefits of an outsourcing firm include the following: 

Saves Money: Outsourcing accounting over an internal hire is generally more cost-effective. The latter option can be more expensive when you factor in payroll taxes, infrastructure, training costs etc. With KMK, you can save as much as 50% on your outsourced accounting tasks. You need not worry about hiring, training staff, or employee turnover. 

Expertise:  When you outsource your accounting, you can help access professionals such as a CPA specialist or an accounting expert with a wide range of knowledge. This ensures your books are always accurate, closed and finalized consistently on a monthly basis. Rest assured that you are not at risk of regulation mistakes or penalties. KMK’s team of knowledgeable accounting and tax professionals have vast industry knowledge and expertise to manage all your accounting needs, from bookkeeping to tax and compliance. 

Saves Time: Overseeing the finance function in your organization can take up a lot of constructive time. Contrarily, outsourcing accounting enables you to focus better on your vision and purpose. Since you may struggle immensely to cope with regulation and compliance issues, outsourcing accounting companies such as KMK assist you in reducing complexities. This helps you reduce the time and effort required to conform with various regulatory bodies. 

Improve Productivity: Outsourced accounting also improves productivity because you get peace of mind knowing that all your accounting responsibilities are taken care of. Additionally, outsourced accounting companies such as KMK provide valuable financial reporting insights that give you an indication of your business performance, budgeting, cash flow, and more.  

Easier to Scale Up:  Outsourcing makes life easier for growing organizations as you might find managing accounting operations on your own difficult and cumbersome. Also, you can feel easily overwhelmed and caught up while scaling up. By hiring a distinguished outsourcing firm like KMK, you can work with an experienced organization with the required capabilities. 

Who Can Opt for Outsourced Accounting Services? 

Outsourced Bookkeeping and accounting services were once the domain of large corporations. However, these have become increasingly accessible to smaller businesses and organizations due to technological advancements and the growing acceptance of remote work.  

• Small businesses find it ideal when they need specialized expertise beyond their current administrative staff.  

• For companies struggling to hire full-time accountants, outsourcing offers a cost-effective solution without the recruitment and training hassles.  

• Growing businesses benefit by scaling their financial capabilities seamlessly.  

• Not-for-profits and charities gain access to experienced financial professionals, easing the complexities of donation management and regulatory reporting.  

• Businesses needing temporary help also find outsourcing valuable for short-term projects and audits.  

Ultimately, outsourcing suits organizations of all sizes, democratizing access to professional financial management and enhancing operational efficiency. 

Common Mistakes People Make When Outsourcing 

People make common mistakes when outsourcing their accounting department. Some of these are mentioned below: 

Choosing a firm that doesn’t align with your values: Choosing a partner firm that does not align with your values: As you will understand, your firm’s values must align with those of your partner. If your vision and values aren’t shared and valued by your partner, you cannot just grow beyond a certain level. Regarding KMK, you will work with a like-minded organization to help you experience the best services and results.  

Choosing a firm that cannot understand your business: Choosing someone who cannot understand your business could ultimately lead your business partnership to failure. Sometimes, the lack of understanding can be frustrating and cause several issues. Choosing a firm that can understand your business is better in the long run. 

Choosing someone that doesn’t match your needs:  Even if you hire a reputed outsourced accounting firm, they may not match your needs due to issues such as a lack of industry-specific experience or mismatched service offerings. It’s crucial to thoroughly vet potential firms to ensure they align with your business requirements and can provide the specialized support you need. 

Why Choose KMK for Outsourced Accounting Services 

At KMK, we recognize that outsourcing is a powerful business strategy involving hiring external service providers to manage non-core business processes. Businesses can concentrate on their core competencies and reduce operational costs by doing so. This method enhances shareholder value by streamlining operations, improving efficiency, and allowing for more effective resource allocation. Outsourcing also grants access to specialized expertise, advanced technology, and infrastructure that may be too expensive or time-consuming to develop internally. Key reasons to consider outsourced accounting services include: 

• Allowing businesses to focus on core activities. 

• Providing access to skilled professionals. 

• Reducing the risk of errors and non-compliance. 

• Saving time and money. 

• Offering valuable insights and recommendations. 

• Enabling strategic decision-making and driving growth 

Closing Thoughts: 

In conclusion, outsourced accounting has emerged as a crucial strategy for businesses seeking to enhance operational efficiency and focus on core activities. By leveraging external expertise, companies can navigate the complexities of financial management with ease and precision. Outsourced accounting saves time and money and provides access to specialized skills and technologies that might otherwise be unattainable. Outsourcing offers a flexible and cost-effective solution, whether you’re a small business, a growing company, a non-profit, or simply need temporary financial assistance. Choosing the right partner, like KMK, ensures alignment with your business values and needs, driving growth and ensuring compliance. As you consider your options, remember that an exemplary outsourced accounting service can transform your financial operations and contribute significantly to your overall success.