One of the many trends that have swept across America’s workforce is outsourcing. Outsourcing can be beneficial to small businesses by reducing overhead and increasing profit margins on services offered by experts outside the company. This article will explore what types of accounting services are commonly outsourced or shared through shared service centers, how they can help the company, and the benefits to an owner or manager.
Payroll Processing
The commonly outsourced accounting service is payroll processing. When hiring new employees, many companies need to pay them and withhold taxes from their paychecks and submit that money to the government on their behalf. Outsourcing can help eliminate financial strain on company resources.
With the services of a payroll processing company, your small business can dedicate more time towards its mission statement instead of worrying about details like calculating every paycheck by hand. There are many ways in which outsourcing payroll services can be beneficial. It frees up both time and money. A company can hire an outside service for a relatively low price compared to the hourly wage of an in-house accountant.
Accounts Receivable
Small business owners who have grown their company past the startup stage are often bogged down by administrative duties; sending out invoices, collecting payments on overdue accounts, and writing checks for reimbursement can take up a considerable amount of time.
Outsourcing tasks like these to an accounting service frees up the company’s time to focus on its primary mission statement. Instead of hiring additional employees to handle such details, companies can hire a third party for a fee, giving themselves more time and money to devote to their business.
Accounts Payable
Business owners and administrators are often bogged down with administrative tasks, such as writing checks for suppliers. By outsourcing accounts payable to an outsourced services company, the business can save money on third-party fees and postage and bookkeeping costs that would have been spent during the process of paying invoices themselves.
Outsourcing accounting services has its benefits. Accounting services are commonly outsourced or shared through shared service centers. Many of the most tedious tasks for small businesses owners are now handled by outsourced services companies, freeing up the business’ time and money to focus on what is important: their mission statement.