Outsourcing financial needs to a professional accounting company have several benefits. Outsourcing financial services is an extensive business practice. Yet, some companies are not certain about outsourcing their financial requirements. Many companies choose to have in-house finance and accounting operations. However, they do not realize that having an in-house finance team can be expensive and difficult to maintain.
So, if you are also contemplating whether to outsource financial services, we are here to guide you! In this comprehensive article, we will debunk 5 common outsourcing myths in finance and discuss why you should consider outsourcing your financial services.
HERE ARE THE 5 COMMON OUTSOURCING MYTHS IN FINANCE
Myth 1 – Company’s information & security will be jeopardized.
There is no doubt that the company’s financial information is sensitive. Few companies feel that disclosure of such information to an outsourced accounting service provider may jeopardize the company’s data and security. Financial statements and related documents are constantly at the risk of a data breach. It is the responsibility of the person handling the sensitive information to ensure that these documents are secured at all times. Outsource the financial requirements to a reliable, trustworthy, experienced, and renowned accounting service provider like Diligen where data security is given top priority.
Myth 2 – Only large companies find outsourcing financial services helpful.
A common misconception, especially among small businessmen is that only large companies need to outsourced financial services. Large companies indeed intensify their efficiency by outsourcing accounting services. Nevertheless, even SME’s (small or mid-sized enterprises) find outsourcing financial services helpful. SME’s can concentrate on their core competencies rather than juggling with accounting, taxation, bookkeeping, etc. They can also reduce expenses related to infrastructure and hiring specialized staff. As a result, a huge number of SME’s and start-up firms are now opting to outsource their financial duties.
Myth 3 –Outsourcing financial services can be expensive.
Initially maintaining accounts in-house might seem like an affordable decision for companies. But there are several hidden costs that companies in a preliminary phase may not take into consideration. The cost of outsourcing financial services does vary depending on the type of company structure and the range of services required. But they are surely not expensive!
Outsourced accounting service providers offer specialized packages that are ideal for all levels of businesses. For example, at Diligen –outsourced accounting services are structured in a way to meet the needs of both multinational companies, large establishments as well as start-up firms across the globe.
Myth 4 – Company will lack control if they outsource financial services.
Businessmen will want complete control of their financial activities within the company. They feel that outsourcing financial services will reduce their control over the regular proceedings of the financial transactions. On the contrary, companies must know that with a dedicated accounting service provider the financial books can be maintained to offer more clarity and control. Furthermore, with the expertise and technological advancement used by the outsourced accounting service providers – companies can have real-time access to the dedicated staff and data. Outsource your financial services with Diligen to have a systematized and clear picture of your financial standings.
Myth 5 – Correspondence with the outsourced service provider is time-consuming.
With technological solutions and software offering real-time updates, there is minimum correspondence required. Companies can rely on outsourcing because of centralization that has been used to improve the financial function’s productivity and reduce correspondence. Through the use of real-time accounting systems, be assured that communication between the company and the service provider is done almost instantly. Real-time accounting does not only reduce the time taken to correspond, but also provides accurate accounting information available as soon as possible. This also supports speedy and quality decision making.
SO, WHY YOU SHOULD CONSIDER OUTSOURCING YOUR FINANCIAL SERVICES?
The financial procedures of a company are a core function. For the long-term success and sustainability of the business professionally maintaining the finances is a must. However, these are not the only reason you must consider outsourcing your financial services. Various scenarios may arise such as you may need to fund or sell the business. You may need to derive the valuation of the company, manage the cash flow, create reports to financially leverage the company, tackle taxation policies, etc.
With an outsourced accounting service provider, you can access a range of financial experts and deal with any type of financial issue almost instantly. If you are still not sure, here are some of the top reasons why you must consider outsourcing your financial services:
- Having an outsourced accounting service provider offers companies to make proactive decisions. They also offer innovative solutions and analytical insight.
- Companies do not need to maintain the high costs of salaried accounting staff and can make fractional use of finance and accounting professionals allowing the business to scale.
- With an outsourced accounting service provider, the company’s staff does not need to do waste time over mundane financial tasks and can be more productive.
- Outsourced accounting service offers wide access to a range of talent pool and technologically advanced tools.
- Outsourced accounting and bookkeeping service providers manage overall costs and increase the profitability and financial stability of the company.
- An outsourced accountant integrates accounting solutions into the company’s existing infrastructure.
SPEAK WITH AN EXPERT FROM DILIGEN
Speak to an expert from Diligen to experience our professional intelligence on financial matters. We understand that every business is different and may have compelling requirements. This is why we follow the best accounting practices and the latest industry standards. Our team consists of highly skilled, experienced, and well-informed financial professionals.
We specialize in offering bespoke financial accounting and bookkeeping services. As your outsourced accounting service provider, we also customize your solutions based on your needs, in-house team structure, and company goals.
Follow this link to get in touch with us.