5 Surprising facts about outsourced accounting you must know

February 15, 2021by Shalaka Joshi0

All the companies, small or big, can be benefited from outsourcing their accounting services. But many still believe that there are more negatives to it than positives.

Many firms believe that their data will be at stake if they outsource their accounting needs, while some believe that small outsourcing teams cannot handle large IT data.

In this article, we plan to bust the myths regarding outsourcing accounting services, and we are here to shed light on the truth about outsourced services. You can gain more and even better if you select and verify proper outsourcing firms.

Outsourced Accounting Myths & Facts

So, explore most common myths about outsourced accounting: 

Myth 1: It isn’t easy to trust remote accounting firms with data privacy.

Fact:

This will only be true if you don’t verify the outsourcing firm before getting them on board. Nowadays, accounting firms are using cloud-based services to secure your data.

It’s completely foolproof, and you can access your data anytime you want. Most of the accounting firms will sign an agreement with you specifying that your data will be safe.

Myth 2: Only large companies require outsourced accounting and bookkeeping services

Fact:

It’s not true. It’s true that large companies can benefit from remote accounting services, but this applies to small to mid-sized firms too. For example, if you have a bookkeeping expert in the house but no one to deal with taxes, you can hand over the latter service to a remote accounting professional.

You save time and get an utterly specialized team at a low-cost. 

Myth 3: Outsourcing requires a high level of IT infrastructure

Fact:

The outsourced accounting team has its own infrastructure, and you need not worry about providing them anything. Most of the remote teams work on automated technologies that you won’t have to buy.

Your data is secured on a cloud-based platform that is impenetrable. All you have to do is introduce your outsourcing team to your company’s working style, and your work ready to go. 

Myth 4: Outsourcing and offshoring both are the same

Fact:

That isn’t true at all. Offshoring and outsourcing, even though both can be resourceful, aren’t the same. 

Offshoring means a company that’s remotely working from another country. While outsourcing means a country that isn’t a full-time part of your main organization.

While both can be beneficial, offshoring can be really good if the countries’ service rates are low.

Myth 5: Outsourcing teams only be used for the short term.

Fact:

You may have an in-house tax expert, but probably you won’t have someone to take care of your bookkeeping. 

The latter service can be given to a remote bookkeeping firm. Bookkeeping is done monthly, whereas tax returns filing is done yearly; you can bring onboard an outsourced bookkeeping firm as a yearly partner. 

So, basically …

Don’t believe in the myths that people have about outsourcing accounting processes. Instead, believe in the fact that these firms are experts at a low price and trustworthy if you verify them.

You have a lot to gain from outsourcing your accounting needs than to lose.

by Shalaka Joshi

Mrs. Shalaka Joshi is the founder of Finsmart Solutions and operates in the capacity of Managing Director. A Chartered Accountant, with passion and love for accounting and payroll. Shalaka has more than 17 years’ experience in field of Accounting, Payroll and MIS reports.

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With new technology, working as your virtual/outsourced accountant/partner has become simple. You can opt for any of the following delivery models: Remote, Visit Based Or Dedicated Resource and we would be able to customize the solution accordingly. Our team is well trained to work on the accounting software of your preference ensure deliveries are met as per the set date plans.

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However this can be done post our initial discussions about your service requirements and our proposed service offering.

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Finsmart SolutionsHQ
Electronica Finsmart Solutions Pvt. Ltd.
1, Mandakini, S.No. 64/24,
Income Tax Office Lane, Erandwane,
Pune, Maharashtra -411004 INDIA.
Get in touchFinsmart Solutions Social links
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