For some organizations, turning over vital business functions, such as accounting to a third party can be daunting. Business owners need to be well informed about outsourcing arrangements and processes in order to truly recognise the value and benefits of outsourcing.
Below are some of the benefits which can be derived from accounting outsourcing:
1. Outsourcing can provide access to highly talented professionals with various levels of accounting and non-profit expertise to perform your non-core accounting services, expertise which is normally too expensive to hire staff for.
2. You can buy professional services/expertise only for the amount of time needed by your organization. This means even a small organization can have multi-levels of accounting staff available to them at any time.
3. With proper month-end closing procedures and quality control placed on outsourced services, you will receive reliable accurate financial reports in a timely manner and make informed management decisions.
4. Outsourcing can help strengthen your organization’s internal controls, increase transparency and accountability in financial operations. Segregation of accounting duties can easily be achieved with the combination of your staff and outsourcing team members.
5. Your outsourcing team can assist with maintaining your organization in compliance with laws and regulations such as tax laws, provisions of Companies and Allied Matters Act etc.
6. Outsourcing will result in recommendations and implementations of financial process re-engineering incorporating best practices to improve efficiency and effectiveness of your accounting/reporting functions.
7. Use of outsourcing firm’s technology, accounting systems, and hardware can result in cost savings for your organization, minimizing your staff time spent on purchase, implementation and maintenance of such systems
8. Outsourcing will eliminate issues with staff turnover, management’s time and effort spent on hiring, training and managing employees. And it minimizes risks and costs associated with potential employment related litigations.
9. For annual audit of financial statements, outsourcing is an excellent way to obtain support for the preparation of the audit. Effective outsourcing teams will save their clients audit fees by being fully ready for the audit, responsive to auditors needs and effectively managing the audit process.
10. Outsourcing can be extremely flexible to meet your organization’s specific needs. You can outsource the entire accounting function or only certain positions or tasks. Outsourcing can be performed on-site, or off-site, which can result in cost savings for office space, equipment, furniture and overhead expenses.
11. Outsourcing provides built-in scalability. As your organization grows or shrinks, you can easily have your outsourced accounting service provider adjust the staffing needs and deal with resource management.
12. Outsourcing provides cost savings to many organizations, including salaries, benefits, office space, technology costs and overhead. There are intangible benefits as well including reliable and timely financial reports, eliminated frustrations related to staff turnover, recruiting, performance management, and saving management’s valuable time.
OTN Consulting is a firm of chartered accountants pioneering accounting outsourcing in Nigeria. We help our clients succeed by providing expert, timely and dependable accounting services and financial insight. Outsourcing your accounting needs to our firm allows you to achieve cost savings through reduced need for internal bookkeeping staff, helps you make informed business decisions and gives you time to focus on your core business.
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