#4 More Scalable
The ultimate goal of most organizations is to expand and grow. Whether that includes mergers and acquisitions, adding new products, expanding into new markets, or simply selling to a larger client base, an experienced financial team ensures the growth goes smoothly. Many small businesses fall prey to the firefighting style of financial management where they don’t allocate the resources to expand their financial and accounting processes until an emergency or imminent need emerges (such as needing organized books and detailed forecasts for fundraising). Outsourcing accounting and financial management means a number of finance and accounting experts are already in the sidelines ready to seamlessly integrate into your financial team when it’s strategically most appropriate.
#5 Fraud Prevention
According to a study by the Association of Certified Fraud Examiners (ACFE) published in 2016, the most common victims of fraud are small businesses, with over 30% of fraud cases occurring in organizations with fewer than 100 employees. The median loss incurred from fraud in these small businesses was found to be around $150,000—higher than or equivalent to nearly every other size organization (but typically with a more dramatic impact due to the smaller size of the business).
“When it comes to fighting fraud, many small businesses face an uphill battle. These entities not only incur losses as large as bigger organizations, but they typically have fewer resources with which to combat this threat,” the report reads. On average, small organizations had 49.2% fewer controls in place to prevent fraud than organizations with over 100 employees.
Outsourced accounting and finance management gives small businesses access to experts in spotting and preventing fraud when the organization may otherwise not have been able to afford the expertise or resources capable of that level of security.
#6 Turnover is More Seamless
Since outsourced accounting firms typically consist of multiple experts in each role, the transition if an accountant decides to leave is usually very smooth. When the books are standardized and systems are already maintained by the outsourced accounting firm, there’s little or no additional collaboration needed from an organization to facilitate a transfer to a different accountant within the firm. It also means the transition will be handled by the outsourced accounting firm instead of an organization seeking and interviewing candidates then providing training once a candidate has been chosen.
Final Thoughts
Outsourcing accounting is becoming more and more popular among organizations interested in optimizing their business operations while reducing overhead. Outsourced accounting has become a strategic transition to elevate an organization’s financial team, streamline processes, enhance security, and to be better prepared for growth or transition.
Is outsourcing your accounting right for your company? Speak with one of our experts to discuss whether your organization would benefit from outsourced accounting services. You may also feel free to ask us a question in the comments below or by submitting a message on our contact page.