What you need to know about Choosing Outsourced Accounting Services
Owning a business entails numerous responsibilities concerning the different operations found in its structure. One way to alleviate such pressure is by outsourcing some functions, such as QuickBooks accounting services to an independent firm.
Whether you’re starting a business or in need of a way to enhance the operations of your current venture, outsourcing service solutions can be a great help. Outsourcing is the process of hiring an independent firm to handle some of the internal responsibilities of your organization. It’s done when a company doesn’t have the needed workforce to handle certain tasks, or when the work involved is too much to be entirely managed by the department concerned.
Gaining more information about outsourcing practices can help you make a better decision when considering this option. One of the more common departments that many companies outsource is the finance and accounting division. This is one of the most crucial sectors of an organization – thus choosing to transfer the various duties and responsibilities of that area to an external party is not a decision that can be taken lightly.
Some of the things you should be aware of when thinking about outsourcing your company’s QuickBooks accounting services include:
Choosing the Specific Functions to be outsourced
If you happen to run a significantly large enterprise, then the accounting department could be divided into further sectors according to the finances they manage. You can choose to transfer all of the responsibilities involved with an accounting department to an independent firm. If you would rather maintain control of certain areas such as internal expenses, then you can shift a small portion of your accounting activities to the outsourcing firm – such as the finances of your sales department.
Hidden Costs and Scope Creep
The initial cost of outsourcing accounting services may rise as a result of an increased scope of responsibilities. If you simply wanted the firm to take care of your payroll concerns, for example, the initial cost of such a service could rise with the discovery of additional requirements. In this scenario, the accounting firm can discover that they are not only responsible for paying your employees, but they have to calculate the hourly rates of the different personnel as well. This could increase the overall cost due to the additional responsibility.
The independent firm hired will have to report to somebody within the organization, and this can influence the current hierarchy set in place. You can either have the accounting firm report directly to you to avoid any confusion or select a department or individual to take charge. The person chosen should have the needed expertise and experience to adequately handle any responsibilities that might come with the reports they receive.
If you already have an internal finance department, then directing the reports developed by an outsourced firm to this sector is the best way to go. This ensures that both internal and external teams work together to achieve their primary objectives. An existing finance division will also know what to do with the various reports that are submitted, allowing them to react quickly and appropriately under different circumstances.