The early years for a startup may be extremely difficult and crucial. They have to struggle to keep the funding processed, they have to compete with established firms and keep the business-operation costs controlled. They are more focused on core business activities like increasing brand awareness and team productivity for better quality, and cut costs wherever necessary.
I have seen many startups that choose to handle the finances themselves and hire teams of finance executives, resulting in a greater cost for the company than what they would spend if they had outsourced accounting services. Outsourcing to an individual or a company allows you to pay for day-to-day transactional work and the support you get from their accounting department.
What is Accounting Outsourcing?
For many, outsourcing is related to only IT services, but the trend has changed in a past few years. Now, more business operations are being outsourced to India as the experts in India offer services at affordable pricing. Global businesses are now outsourcing administrative tasks, customer service, human resources and marketing needs to the service providers. Bookkeeping and accounting is no exception.
It is the process of hiring an individual or a firm, specializing in offering accounting services in India, to take care of all your accounting service needs at affordable pricing. The hired professional will manage your financial activities while working from his (or her) remote location.
Outsourcing is now a growing trend that enables small firms and start-ups to get the required accounting services and skills to grow in the cut-throat marketplace, without any significant investment of hiring the in-house finance teams. So, if your business is growing and you need someone to take care of your bookkeeping needs, but you do not want to invest in your own or extra equipment, outsource accounting to a trusted firm.
How outsourced accounting services can help shine amongst others that are not prepared?
Not just it saves a lot of your time and cost that you would spend on handling the finances yourself, but also plays an important part in your brand growth. There are many key ways the decision can give you major advantages as you grow:
You’ll Maintain Good Business Habits From The Start
It’s true that most start-ups and small companies initially ignore the importance of bookkeeping, and then panic when they have to deal with the tax-related issues. Various legal problems may be faced if you are not ready with proper “bookkeeping files”. Dealing with a professional outsource bookkeeping company from the start helps you develop maintain good business habits that support your growth. You have better control over your expenses and know where your business stands financially.
Additionally, your outsourced accounting partner may also teach you about the “Ins” and “Outs” of bookkeeping so you know everything about the financial matters of your company and its growth.
You’ll Make Better Financial Decisions
In the beginning, you have to handle everything and invest on various business operations. Instead of spending like crazy, your offshore partner firm will be your support to prioritize everything related to finances. They don’t make financial decisions that are based on assumptions, but prepare plans and craft solid strategies, based on facts.
You Can Scale With Your Company’s Needs
Who knows your startup turns out to be among the fortune 1000 companies in the following few years. With the growth, changes your bookkeeping needs as well. You may just need monthly accounting services today, but you may seek comprehensive daily accounting services as your company grows.
Instead of handling a major transfer from a small part-time in-house finance executive to an accounting firm later, you can stay stick to your outsourcing accounting service provider who can handle your needs now and in future.
You’ll Have Access to Pool of Talent
Over 70% of businesses that outsource their accounting services admit that they opt to outsource because it offers an entire team of accounting experts on their side. And with access to pool of specialists, outsourcing to India is gaining more popularity at global level. These experts have worked with various businesses, which means they can support your business growth with comparative and critical analysis.
They know the insights of the industry and are familiar with what your company should prepare for, what financial solutions may be better, how to make better spending choice, etc. For your growing business.
Can It Work for Your Company?
Outsourcing your company accounting needs to a professional firm may be a great way to deal with increasing expenses and to reduce costs on operational process. If you think whether or not it will work for your company, it probably will! Not just the startups, but the established firms are also considering to transfer their accounting management to the outsourcing service companies to grow their businesses and make smarter decisions.
Starting at the early stage will support your company’s financial health and serve as a strong foundation for your business growth.
I’m currently working as Finance Executive with Fintax Experts. I am passionate about driving high growth metrics while also improving operating efficiency. I have worked in a number of business-facing finance roles firms. I have the keen interest in supporting a complete Finance systems implementation project. In addition, I have managed both retail and commercial lending officers and oversees the credit department. Apart from financial services, I have keen interest in BPO services, Tax outsourcing services, Tax handling etc.