For some organizations, turning over vital business functions, such as accounting, to a third party can seem daunting. Executives need to be well informed about outsourcing arrangements and processes in order to truly recognize the value and benefits of hiring third party experts to manage day-to-day functions.
Here are some examples of why accounting outsourcing is a smart and efficient solution:
- Outsourcing can provide access to highly talented professionals with various levels of accounting and nonprofit expertise to perform your non-core accounting services, expertise normally too expensive to hire staff for.
- 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 from CFO to accounts payable specialist available to them at any time.
- 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.
- 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.
- Your outsourcing team can assist with maintaining your organization in compliance with laws and regulations such as lobbying, political activities and OMB Circulars for federal grant requirements.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
Elhur-Accounting’s services range from providing selected accounting services to providing entire back office support.
Your need for Managed Accounting Services may be as simple as interim staff support and processing vendor invoices, or as complex as a compete outsourcing of all your organization’s accounting functions with high-level support and oversight by experts.
We tailor our services to each of our client’s needs and become an extension of their organization’s team – regardless of the service level.