70% of small and medium businesses outsource some portion of accounting needs to third party – Source
Outsourcing has been a buzzword for a while; the emerging outsourcing accounting trends in small and medium businesses reveal a notable upward trend in interest and adoption.
Traditionally, SMB owners relied on in-house accounting teams to handle financial responsibilities. However, of late, there has been a noticeable shift towards outsourced accounting services. Even the businesses that overlooked the benefits of outsourcing accounting have embraced its full potential.
37% of small and medium businesses have outsourced complete accounting processes. – Source
This transformation has been steadily gaining momentum, and it’s not merely a trend – it’s a conscious move with multiple driving factors behind it.
60% of businesses look for outsourced accounting firms that are proficient with their choice of accounting software.
50% of SMBs shift to outsourced accounting firms that deliver output on time.
45% of organizations want to partner with outsourced accounting firms that ensure seamless communication. – Source
Do you find yourself drawn to the allure of these compelling facts? If not, let us spell it out for you: Successful SMBs have uncovered a secret weapon that is outsourced accounting. Let’s delve deep into the reasons why outsourcing accounting adoption is on the rise among SMBs, examining the key drivers of this transformation.
Discovering the Key Drivers of Outsourcing Accounting
In this dynamic landscape, harnessing the power of strategic outsourcing emerges as a transformative force. This comprehensive exploration dissects the intricacies driving the paradigm shift, from cost optimization to specialized expertise acquisition. The narrative unravels how this strategic choice amplifies financial transparency, regulatory adherence, and scalability—fundamentally reshaping the trajectory of SMBs.
Embrace Efficiency, Embrace Excellence
58% of small and medium business owners working 60 or more hours a week agree that bookkeeping tasks are draining. – Source
Time is money, and every second counts when you’re running a tight ship. Apart from being an owner, you are also a conductor orchestrating growth, resilience, and industry impact. And toggling between emails and a quick review of financial reports is like clockwork.
Balancing books is just the beginning; you also need to steer your business through unpredictable market tides. However, there’s always the hope of delegating some tasks to your team or third party without compromising efficiency.
Fortunately, by outsourcing accounting operations, you can embrace the power of efficiency and excellence. Experts handle tasks with precision, leaving you with more time to focus on what truly matters – growing your business, leading your team, and making strategic decisions for sustainable growth.
24% of small businesses outsource accounting processes to improve efficiency. – Source
The Advantage of Accounting Expertise
60% of small business owners felt like they were not very knowledgeable about accounting. – Source
You may not have the accounting prowess to navigate the complexities. Indeed, you could hire an in-house accountant, but finding the right talent can be daunting. Outsourcing gives you access to a team of accounting experts who eliminate your woes! These certified professionals have deep domain expertise and experience, making them the ideal team for handling your accounting needs with finesse.
Cost-Effective Solution
According to Deloitte survey reports, 57% of businesses cited cost-cutting as the primary reason for outsourcing.
What if I say outsourcing accounting can result in cost savings between 30-50%?
Now you’re intrigued, right?
Here’s the catch: Hiring an in-house bookkeeper and accountant can break the bank. Experienced professionals come at a premium, and to maintain a robust back office, you’ll need at least three staff at all times.
According to salary.com, the average annual salaries of:
Bookkeeper – $40,000
Staff Accountant – $57,000
Accounting Manager – $105,000
That is why outsourcing accounting is less expensive than hiring in-house as the full-stack team is $30 – 60k a year. Obviously, you eliminate the cost of hiring, managing, retaining, and training staff, giving you more bang for your buck.
Cutting-Edge Technology
Technological advancements have drastically changed accounting operations, from 13-columned, manually prepared documents to in-house accounting software, and finally the unprecedented shift to outsourced accounting.
Staying up to date with the latest accounting software is crucial for maintaining accuracy and efficiency. You may find it challenging to keep pace with rapidly evolving accounting technologies on your own, but outsourcing firms thrive on embracing cutting-edge solutions.
Outsourced Accounting service providers work on your choice of accounting software, project management software, POS, document-storage platforms, and automation tools and analytics, allowing you to streamline processes, gain real-time insights, and make data-driven decisions with ease.
Accounting Software – QuickBooks, Sage, Xero, MYOB, PathQuest BI, PathQuest AP, Epicor, FreshBooks, Kashoo, Lacerte, Lightspeed, Drake, Netsuite, Oneup, Abila, AccountEdge, Canopy, Wave, CCH, ZipBooks, ZOHO Books
Project Management Software – Appfolio, Asana, ClickUp, Redtail
POS – Dealertrack, M.Key, Revel, Rowriter, Tekmetric, Tire Guru, Toast, TouchBistro
Document Storage – Dropbox, Google Drive, OneDrive, SharePoint, SmartVault
Finding Order Amid Chaos
78% of businesses all over the world feel positive about their outsourcing partners. – Source
You’re no stranger to the workload. The last thing you need is the juggle of managing complex accounting tasks on your plate. Handing over accounting responsibilities to third-party experts, you can finally breathe easy and focus on what truly matters – growth, innovation, and maintaining relationships with customers, vendors, and staff. You not only ensure accuracy and compliance but also soar beyond limitations and embrace new opportunities.
Outsourcing Accounting process is the path to triumph for SMBs! This revolution is not just a trend; it’s a transformation that will shape the future of your business growth. So, what are you waiting for? Step into the world of limitless possibilities with outsourced accounting. Embrace the influence of accounting excellence and elevate your business to soaring heights. The future is now, and it’s yours for the taking!
