A few months ago, several professionals in the accounting field got together to conduct a large-scale study on the value of outsourced accounting and bookkeeping services for businesses. The result was the 2018 Client Accounting Services study—a survey collecting feedback from over 1,700 companies which had used outsourced accounting services to improve their business operation.
We weren’t surprised by the results (Though it’s always nice to have our viewpoints affirmed by data!):
- 68 percent stated their accounting was easier and more efficient across the board
- 80 percent agreed that outsourced accounting gave them more time to focus on their core business operations
- 30 percent agreed the advice of their service providers helped them increase profits
- 30 percent reported feeling more prepared to make business decisions
That last point is important—maybe even more so than increased profits or business efficiency (nice fringe benefits though they may be). One of the biggest value propositions of outsourced financial services is the business intelligence it provides.
Outsourcing Isn’t Always About Saving Money
Let us clarify. Outsourcing can certainly save you money when you compare the flat cost of recurring services against the costs of staffing your own bookkeepers—payroll, HR, insurance, etc.
Yes, outsourcing might help you save money, but you really shouldn’t go into it focused on the financial aspect. The real benefit of outsourced bookkeeping services is the expertise you get by tapping into the collective minds of industry professionals capable of reining in your finances and giving you the insights you need to move forward.
Expertise Means Better Decisions
Just think of everything that goes into bookkeeping. Managing transactions. Preparing financial statements. Monitoring for trends. All of these provide data; where you can trim expenses, which services contribute the most to your profit margins, and how you can structure your services for long-term growth and sustainability.
DIY (do-it-yourself) accounting platforms and in-house bookkeepers can give you part of this insight, but outsourced teams take it a step further. They aren’t just generating numbers, they’re reviewing data from plenty of other clients, businesses, and industry sources. Combined with their dedicated training in financial services, this gives them a broad perspective on micro-trends within your company as well as broader industry trends with bigger economic impacts. Of course, all of this is backed by the financial services, audits, and the kind of reporting you’d expect from an outsourced provider.
Scalable Financial Solutions for Growing Business
It’s no secret that SMBs are seeing more pressure than ever to provide financial transparency in their enterprises. Accounting rules are changing, and companies with fast-evolving business models (like SaaS companies) are facing the biggest scrutiny. It might be time to consider whether outsourced bookkeeping services can provide the reporting security you need.
It’s not just about costs or even better business intelligence—it’s about establishing an efficient financial system that sets you up for success, now, and in the future.