How does outsourced accounting services work

How does outsourced accounting services work

Outsourced accounting services – an introduction

When a company contracts a third party (from outside the organisation) to complete its accounting and financial functions, it is known as outsourced accounting. Outsourced accountants manage the company’s whole finance department, including bookkeeping, payroll, financial reports, management accounting, tax, accounts payable, accounts receivable, debtor collection, and other accounting-related activities.

If you are considering outsourcing your accounting services, rest assured that this will come with plenty of benefits, especially if you are a smaller company just starting out. Among the perks of outsourcing your accounting services are:

1. Cost saving

Hiring a third party to do your accounting work is usually less expensive than hiring someone in-house. When you consider office space, insurance, sick days, and other expenses, hiring in-house accountants can be costly. Furthermore, employing an accounting company gives you access to a team of professionals with a diverse set of talents (versus an employee who can only do one task at a time).

2. Access to expertise 

You can genuinely save money while improving performance by outsourcing your accounting. You’re probably not a master accountant if you own a company that isn’t an accounting firm. When you work with a CPA specialist, you gain access to someone (or a group of people) who is an accounting professional with a diverse set of skills. This ensures that your books are always up to date, that your payroll is compliant and done on time, and that you are not subject to penalties or regulatory violations. A good firm will complete the task correctly and efficiently.

3. Time saving 

You will spend less time supervising the organization’s financial activities and generating financial statements if you outsource your accounting, giving you more time to focus on your vision and purpose. 

The high amount of regulation and compliance is one of the most difficult challenges that many businesses confront. At PLCO, our experts will help you decrease the complexity and problems associated with complying with multiple regulatory authorities, as well as the time and effort required to do so.

4. Boost productivity

You can have peace of mind knowing that your accounting tasks are being taken care of if you have a dependable financial staff. You’ll also gain access to financial reporting insights that reveal your company’s profitability, cash flow, planning, and more.

5. Highly Scalable

Having an outsourced accounting firm will make your life much easier if you’re a growing company. Accounting operations can be challenging, and it’s easy to become overwhelmed and caught up in all the moving parts when expanding up. With an outsourced accounting service, you can work with experienced professionals in a highly scalable environment.

6. Digital automation

You’ll be able to streamline processes and automate duties if you work with an outsourced accounting team because you’ll have access to all of their accounting software (Xero/Quickbooks, for example) and systems. By adopting the digital revolution and going paperless, you’ll be able to lower your carbon footprint and influence the environment. This saves money on inventory while also saving time by minimising filing and storage requirements.

How to get started?

Our CPA-qualified accountants can help you save time, money, and develop your organisation by providing industry-leading business accounting. Peter Leow Consulting Pte Ltd (PLCO) is a professional firm based in Singapore that provides Accounting, GST, Corporate Tax, Secretary, Consultancy and Audit Services. As a client, you will benefit from the simplicity and dependability of an all-in-one accounting solution. Get in touch with us today to learn more about how we can provide the necessary accounting solution for your company.