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As a business owner, you’re keenly aware of the challenges accounting brings. And you also know these challenges arise from its complex, and sometimes repetitive, set of tasks.
With the amount of time you have every day — and the endless workload you need to wade through — you are probably searching for efficient ways to oversee your business’s finances. It’s a familiar struggle among business owners. But the rigor of financial work doesn’t have to fall squarely and solely into your hands.
In fact, it doesn’t have to fall into only one person’s hands. By outsourcing accounting services, you gain the advantages of having a professional team with different skill sets at a significantly lower price.
Interested to know how outsourced accountants can turn your financial clutter into systematized records? Here are the best advantages of outsourcing accounting services, particularly in the Philippines.
The Best Advantages Your Company Gains from Outsourcing Accounting Services in the Philippines
A Diverse Range of Services
Accounting involves many financial processes vital to a company’s operations and success. At its most basic, accounting requires companies to monitor their daily transactions rigorously. After tracking these changes, companies must then analyze their financial records and ensure these records comply with the standards and laws of the location in which they operate.
Of course, it doesn’t stop there. Companies also need to manage payroll, issue invoices, and follow up on unpaid ones. Many other functions contribute to the overall work of accounting, all varied and requiring unique skill sets to be accomplished. So for a company to survive, it should have several accountants managing the varying functions of its finances.
Your company can scout for talent in the market, one by one, until you build a full team that meets your accounting requirements. This is a viable option if you have the time and resources to go through the recruitment process for each candidate or if you’re building your accounting firm. But if you’re engaged in a completely different industry, you can go for a more optimal route — outsourcing.
Outsourcing accounting services to trusted companies like NarraSoft continues to be practiced by SMEs until today because it offers a variety of solutions. For example, NarraSoft readily provides a team of accountants who are experts at bookkeeping, general accounting, processing invoices, processing payroll, analyzing finances, and more. It’s a smart strategy for businesses that want to maximize their resources and focus on the core activities that enable their growth.
Significantly Lower Accounting Costs
For many companies, hiring a full team of accountants is daunting — especially after checking the figures. Not only will there be individual salaries to consider, but there will also be a number of overhead costs enough to compel SMEs to weigh their options.
Here’s a quick look at the figures. If you’re a company operating in the US, bear in mind the average annual salary of an accountant is $71,000, according to the U.S. News & World Report. This number changes in every state, going as high as $102,000 per year.
Moreover, a 2017 article in the Journal of Accountancy says a US-based accountant with less than a year’s worth of work experience has an average salary of $66,000. With work experience, they can earn 55% more, averaging at $119,000. All these figures pertain to an accounting team of one.
For an SME, the costs to take in one US-based accountant are too exorbitant to accommodate. And if your company is in the small- to medium- range, your response would probably be to find alternatives options. Fortunately, you know by now that a tried-and-tested strategy is outsourcing.
In fact, one of the key drivers of outsourcing is cost reduction, which becomes more significant when you’re offshoring. Often, American and European companies offshore to countries with a much lower cost of living.
Professionally Trained CPAs With Specializations
Price and wide-ranging services are two of the best advantages of outsourcing accounting services. But several SMEs wonder whether these advantages are worth it, considering the accountants’ capabilities.
Two issues often arise from outsourcing or offshoring accounting services. The first is the lack of expertise. And the second is the lack of knowledge of other countries’ accounting standards and laws. This is a common worry among SMEs, which is unfortunate given how competitive outsourcing companies are today.
Because today, there are accountants in the market who can perform specific accounting functions and who have a working knowledge of the other areas as well. Moreover, there are Philippines-based CPAs trained to serve companies based in the US, Australia, Canada, Singapore, and others. They’re tax experts of foreign countries living in a country with more affordable rates.
Since the BPO industry is continuously growing in some countries like the Philippines, you will be hard-pressed to find an outsourced accounting firm with zero specializations. So don’t miss out on the advantages of outsourcing accounting services. Learn what an outsourcing company can offer you and simply tell them your accounting needs.
Quicker Turnaround Times Due to 24/7 Availability
With all the tasks involved in accounting, a company has to juggle so much on top of its core activities. For example, it can be particularly worrying for payroll due to the sheer volume of data it needs to process on a tight deadline. As for bookkeeping, a company needs to continuously update its record of transactions to ensure its financial statements are accurate.
If your company is having trouble meeting the time-sensitive demands of accounting, you need a team that’s available 24/7. An accounting partner with flexible hours will help you achieve quicker turnaround times. And in the offshore outsourcing industry, graveyard shifts are common, which means outsourcing companies can work during your preferred hours.
For example, NarraSoft has been operating 24/7 for years. We have morning shift, night shift, and graveyard shift workers, all of whom work in the digital art, software development, or accounting department. In addition, we have been providing services to clients in the US and European countries. And it’s all thanks to our talent and round-the-clock availability.
Extra Advantages of Outsourcing Accounting Services in the Philippines
In the 2020 EF English Proficiency Index, the Philippines maintains its position as one of the top countries most proficient in the English language. This makes it easy for foreign clients to communicate and collaborate with Filipino workers. Plus, Filipinos and Americans have substantial cultural similarities.
How are similarities in language and culture beneficial to your company’s accounting needs? For one, Filipino accountants and CPAs can fluently communicate their findings to you. It minimizes communication and gives you better insight into your company’s finances.
Another advantage is the great working relationship you gain with the people who manage your finances. It’s easy to be on the same page and work toward one goal when you and your partner company can easily see eye to eye.
Access to Proper Accounting Tools
As with any relevant work process nowadays, companies need to keep their financial records organized in the digital space. Going digital requires technical know-how, even for the most user-friendly software. And when it comes to handling your company’s finances, you have to know the tools you use well. Simply downloading QuickBooks, Xero, Oracle, and other accounting software just won’t cut it.
Outsourcing accounting services doesn’t only provide you with experts who have had years and years of training. Along with this are the software applications they need to record, organize, and analyze your company’s financial data. So there’s no need for you to stress over the best tools for your business. Instead, your outsourcing partner will manage these details for you.
You Focus on Your Core Business
Accounting is taxing work better delegated to professionals. When a business owner starts a company, their main goal is to find ways to expand it, not to juggle their company’s numbers in a professional capacity. If you add accounting to your daily work, your business growth will inevitably slow down.
So what if you had a complete team of accountants who can take the work from your hands so that you can focus on big-picture plans? With an outsourced accounting team, you can invest your time and energy into exploring more opportunities for your business, thereby creating a growth strategy that will ensure long-term success.
The best advantages you get out of outsourcing accounting services, especially to a Philippines-based company like NarraSoft, are:
- Wide-ranging services
- Significantly reduced costs
- CPAs with key specializations
- Flexible working hours
- Easy communication
- Access to accounting tools
- Better focus on your core business
Looking for professional CPAs and accountants at a much lower price? At NarraSoft, we treat your business as though it were ours, so we make sure its financial health is constantly in good shape.
Partner with our accountants today to accelerate your business growth!
For a free consultation or for any inquiries, send us an email at email@example.com or send us a message on our chat box or contact form.
Sources: Business Wire | EF | Journal of Research in Personality