A case for delegating
Delegating the flow of finances to professionals in a cost-efficient way may be the best thing you can do for your growing business because, as an owner or manager, you know that business is composed of a set of interrelated systems that will ensure the smooth flow of transactional processes and efficiently convert capital into revenue. It is therefore important for a business owner to consider each component as if it is just an existing process inside the controlling system.
Of utmost importance and consideration is the attention and care which must be given to each process component; this includes the accounting process. That is why we have tax lawyers; and it is also why we have public accountants and financial managers.
The accounting process
It is the measurement and disclosure of essential financial information that will help public accountants, financial managers, tax authorities, investors, and other decision-makers to effectively allocate their financial resources to each business process, thus maximizing the conversion of a business’ working capital to substantial revenue.
Accounting involves processes in which important financial information of a particular business is recorded, summarized, evaluated, and interpreted. Furthermore, since money is one of the biggest factors that may affect the existence of a business in a certain market, accounting is given the utmost attention and consideration at all times.
In accounting alone, there are several aspects that a business owner must consider. As such s/he must be attentive to the cost accounting, the cash-basis accounting, the financial accounting, the internal fund accounting, the management accounting and the project accounting, as well as a few other aspects of the business.
And the list expands more
In other words, one might conclude that accounting is a serious and critical matter that must be handled by a group of people who have the technical expertise in dealing with the accounting as well as financial issues. Understanding this reality, more and more business organizations hand the accounting aspects of their business process to third-party organizations, most commonly known as accounting outsourcing.
Accounting outsourcing is considered to be one of the more effective management tool, which is why many companies often incorporate outsourcing as one of their strategies in business planning. As a matter of fact, the Outsourcing Institute reported that the concept of a CRO (Chief Resource Officer), a professional outsourcing executive manager, is widely-acceptable in larger corporate organizations.
For businesses large and small
However, you need not to be a large corporation to benefit from accounting outsourcing, because even small and medium-sized enterprises can provide better service and produce high-quality products in a more cost-efficient way if they will outsource their non-core business processes, including the accounting aspect. By decreasing the demands on your administrative personnel, you will be able to free them from additional responsibilities and they will better be able to support areas directly impacting your sales and clients, as well as to the marketing tasks of your business.
Accounting outsourcing firms can execute your accounting and bookkeeping tasks in all frequencies (monthly, quarterly, and annually) or can supplement your present administrative staff to lessen the responsibility. Following is a summary of the services you can expect by outsourcing your company’s accounting process.
- Preparing cash disbursement checks;
- Preparing input credits and bank deposits;
- Preparing company payroll;
- Preparing tax deposits and bank reconciliation;
- Preparing financial statements;
- Preparing payroll tax returns; and
- Evaluation and review of financial results on different frequencies.
With accounting outsourcing, you will be able to reap the benefits of having a cost-efficient business operation. And with your accounting process at the hands of outsourcing professionals, you can direct your focus to the core functions of your business and convert every cent of your working capital into thousands of dollars in generated revenues and profits.
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