Hiring an outsourced accountant: for whom it is suitable and why it is profitable

Blog

26 July 2022

Organizations that sell, buy, pay salaries and report to the tax authorities will need an accountant. But the specialist is not always needed as a member of the staff. You need to pay taxes and take social responsibility for a permanent employee. Outsourced accountants, that is, third-party specialists, perform the same accounting processes for finances and allow business owners to focus on scaling and strategizing.

Advantages of an accountant on outsourcing

In Europe, 86% of small and medium-sized businesses outsource accounting, in the US - 92%, in Israel - 96%. Owners see it as the benefit:

The service is provided by a team of specialists. Service providers involve a group of experts: accountant, calculator, internal auditor, treasurer. Provided that the internal control is well established the risk of errors is minimal.	An accountant who is always available. A staff member may get sick, go on maternity leave or on vacation. The outsourcing team stays in touch and is ready to work.	Automated process. Third-party accountant works in Quickbooks, Sage, Visma, Xero, Microsoft Dynamics, SAP and others, which systematize inventory, audit, expense accounting, taxes and charges. Errors are minimized by automation.
Payment only for the accounting service. The customer understands the amount of work and the end result.	Guarantee of the result. The accountant on outsourcing pays his reputation for errors. Major outsourcing companies insure their professional responsibility

Who is an outsourced accountant suitable for

Outsourced accounting services are suitable for almost all companies: small and medium-sized businesses, newly created organizations, NGOs, companies with different types of ownership.

Startups. The team is dedicated to setting up business processes, so it is essential not to be spread out over other functions. Bookkeeping is delegated to an expert who will help organize the work and create a base for the future.
Small and medium-sized businesses. Outsourced accounting support optimizes costs: staffing is not necessary, there are no questions about overtime, bonuses, and the like. Outsourced accountant is interested in a large number of assignments.
Companies and organizations with specific activities that require a narrow-profile specialist They know the nuances of legislation and taxation in a particular area. Such staff member is difficult and expensive to be found .
Seasonal or short-term business. Services are ordered to an accountant when a firm or company is active, makes a profit and commits financial turnovers.
Companies with two or more founders. Independent accounting and bookkeeping is needed in this situation. An independent expert will provide transparency and equal access to information.

How to choose an outsourced accountant

This is a strategic decision to start working with an outsourcing accountant, as the company passes information and information to a third party. Outsourcing specialist should understand the specifics of the company, the scale of business and the complexity of processes in the industry.

Organizations that provide accounting services must license their activities. They are members of specialized boards and associations. Their transparency can be verified easily on special sites that have information security and data privacy certificates. It is important to know how long the firm exists in the market and the information about its customers. The accounting company draws up a liability insurance policy with a valid term, which protects the client in case of errors and penalties due to the fault of the service provider. The list of services and expected results: accounting, taxes, declarations are discussed before the beginning of cooperation.

Outsourcing accounting performs work at a high-tech level and takes care of a whole range of services. This can be difficult for a regular accountant - a member of the staff. The company that outsources part of the work is more focused on key business processes that increase its competitiveness.