Why outsourcing your financial services might be the right call

Benefits of outsourcing your financial services

Here are some of the most common benefits of outsourcing your financial services:

Save money

While it might initially seem as though hiring outside help could be pricier than handling finances with an in-house team, outsourced financial services are quite cost-effective. This is especially true if the business would otherwise need to hire their own accountants, which takes time and effort better spent elsewhere. Bringing on new employees also leads to other costs such as payroll taxes, benefits, insurance, salary, and time off, all of which can be quite expensive. 

Outsourced financial services, on the other hand, require payment for their services only, without the need to add on a fixed salary with benefits and insurance packages.

Save time

Time is money, and every second spent wrestling through financial statements is a second that could be spent on more important matters. This is true of most organizations, but it is perhaps particularly apparent in smaller businesses with fewer people on staff. When there is only a handful of workers able to cover business tasks, the loss of even one person can negatively impact productivity and ultimately impact the organization’s income. 

This isn’t to say that there is nothing you can do on your own to ensure you keep your finances on track. Accounts payable software can make the process much easier and quicker, especially when you invest in quality software. 

In addition to managing your own accounts payable with software as described above, working with outsourced financial services makes it easy to have detailed accounting without sacrificing time perhaps better spent on other things.

Receive more detailed care

Businesses can generate a surprising number of financial statements. From keeping track of payroll to balancing insurance costs and taxes due, maintaining accurate records can be a challenge in businesses of any size. Once again, this is especially the case when employees have other responsibilities to attend to besides scouring financial paperwork. 

An outsourced team of finance professionals can provide detailed care without requiring anyone in-house to shift their focus off their work.

Avoid costly fees and fines

Financial services refer to much more than simply calculating money in and money out. In fact, there are often numerous regulations and requirements governing business finances that require attention. Missing a filing deadline, for example, could be an expensive mistake to make, especially as fines pile up when the error isn’t immediately noticed. On top of that, taxes are a large part of running a business and it is critical to maintaining good financial records to ensure that everything which needs to be paid is addressed. 

Outsourced accountants and bookkeepers have a more in-depth understanding of financial regulations which must be met, saving businesses money on potential audits and fines. They might also be able to save even more money for businesses by understanding the expenses which can be written off or otherwise reimbursed.

Scalable care

Financial services can be expensive to handle in-house for a few different reasons. We’ve already discussed the time and effort it takes to maintain accurate records with an in-house team, but there are also other factors to consider. What happens when the business begins to grow and its finances follow suit? Small businesses may be able to handle their own records at first, but what seemed manageable at the beginning quickly becomes overwhelming as demands increase. 

Out-of-house financial services providers can typically scale their packages to match a business’ needs. When they only need the basics, they can receive simple and straightforward care. As the business grows, particularly with quick and sustained growth, they can scale up their offerings to match the increased demand.

Improved peace of mind

Financial mistakes can seriously damage business growth. Whether the error means that profits are miscalculated (and, by extension, inaccurately reported to invested parties) or invites an IRS audit, mistakes with money at their core can be incredibly costly. This kind of error can impact a company’s reputation with both the public and potential investors too, which can have a long-lasting impact on a business’ long-term growth.