Why You Might Be Wasting Time Employing Accounting Staff!
You may be in a position where your business is expanding and therefore additional resources are required within your accounting department.
The first actionable port of call will be to create the new position and write the Job specification. Then you know how it works, the search begins! You put an advert out for the role, you speak to recruiters regarding the new opportunity within your business, you receive a host of CV’s to go through and check, then you start the interview process, etc etc…..
The cost, time and resources invested into the recruiting process alone are not only high but exhausting. Then for that person to potentially not be the correct candidate or they leave after 6 months training, resulting in you having to start all over again doesn’t bare thinking about. It can potentially cripple a start up or small business.
What many businesses don’t do is to give sufficient time and consideration in fully investigating the alternatives. The one’s that do often reap the benefits and the business develops and grows at a much quicker and more efficient rate. Outsourcing accounting functions has rapidly become the popular choice for many business large and small.
Here are just a few reasons that highlight why you may be wasting your time when looking to employ someone internally to manage an accounting function.
1 You’re Losing Out Financially!
Outsourcing reduces overall costs, enables departmental savings and is proven to increase a business’s profitability. If this isn’t a good enough reason alone to consider outsourcing over employing additional staff then we don’t what is. Outsourcing accounting functions such as bookkeeping, payroll management, sales and purchase ledger roles saves paying full or part time salaries and employee benefits whilst eliminating any areas of poor employee productivity.
2 Risks Are Much Higher
You are always in danger of losing employees, not being able to sustain a high quality service to your customers or keep up to date with accounting principles, compliance, tax processing etc. Businesses that offer account managed services do not suffer any of these risks as they utilise a pool of internal qualified staff who are fully trained on compliance and accounting practices.
3 Lower Efficiency And Standards Of Accuracy
Financial process outsourcing (FPO) companies have trained, qualified and experienced experts that reliably check and then double-check work before its processed they give you complete peace of mind that work is being completed professionally, accurately and on time.
4 Not Able To Take Full Advantage Of Current Technologies
Businesses that offer accounting services and solutions use many tried and tested solutions. They take advantage of the latest technology and ever changing system processes. With the market regularly developing new technologies and online services it can be difficult for any business to keep up to date. Here you can lean on the knowledge and testing capabilities of account services businesses using it to your advantage.
5 Unable To Assist With Scalability Planning
With FPO’s helping businesses to make minimum cost commitments on staff, an experienced outsourcing provider will perform resource management planning and ensure a lower per-unit resource cost. Scalability will be accounted for in the project scope.
6 Negatively Impacts Company Valuation
When businesses are bought and sold, all parties carefully determine the value and profitability of the business being bought. When a business outsources various functions such as accounting and bookkeeping they are considered to be more profitable than other firms who don’t outsource. FPO will increase a business’s valuation and can help in other situations such as trying to raise borrowed funds from banks.
There are many more benefits to having a specialised and qualified business look after and manage accounting functions but we’ve only listed a few. Put simply, you will become more profitable by cutting back expenses and overheads and your business will enjoy efficient development and growth by utilising the time and expertise of a complete team.
Once a business has started to outsource accounting functions they very rarely revert back so stop wasting your time on the recruitment merry go round and start considering more effective ways to run your business and obtain profitable and efficient results.
Don’t just take our word for it!
We have helped many business in the past to become leaner and more efficient, you can see what we have achieved with them by checking out our case studies.
If you want to contact us for a discussion on how we can help your business feel free to call us on 0800 955 3350 or complete the below form and we will be in touch.