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How Outsourced Bookkeeping and Accounting Saves Your Business Money

07-May-2024

Outsourced bookkeeping and accounting can be highly productive and cost-effective operation when done right!  

The key lies in identifying which tasks can be assigned to an outsourced bookkeeping and accounting services firm. Whether to outsource end-to-end or selectively as well needs careful deliberation.  

Both strategies can effectively help business expense management and cost control.  

So, whichever path you take, ensure it aligns with and serves your business needs, budget, goals, and purpose.

Outsourced Bookkeeping and Accounting: Cost Reduction vs Cost Savings  

Picture your accountants and bookkeepers busy creating lists of expenses for buying new equipment and machinery for a new manufacturing unit.  

Or your accounting team preparing quarterly revenue reports when your service business has achieved double-digit growth. 

Remarkable, right?  

Of course, it’s not a good idea to randomly fire your good employees or ignore investing in the best accounting software, which can improve accuracy and speed. 

However, you should not hesitate to eliminate unnecessary expenses from your accounting department. They may comprise: 

  • Unused software licenses 
  • Excess office supplies 
  • Redundant equipment 
  • Inefficient workflows 
  • Overstaffing 

Simply put, you are cutting off wasteful and unproductive expenditure, which outsourcing can also help you accomplish with minimum effort.  

Further, cost saving as well is an important decision for any business. It means using resources optimally and effectively. 

accounting-outsourcing-saves-business-costs

Let’s take an example. 

You can skip capex on building an internal accounting department or its expansion when you use outsourced services. It can save you money that you can use for other strategic initiatives, like growing your business or paying back your bank loan. 

Every business wants to keep its expenses in check.  

And outsourcing bookkeeping or accounting can save your precious dollars in one important area of your business. 

The Types of Costs You Can Save with Outsourced Bookkeeping and Accounting 

Now, let’s dive into the types of costs you can eliminate or reduce when you outsource your accounting-related tasks. 

As of May 2022, bookkeeping, accounting, and auditing clerks earned a median annual wage of $45,860, according to information from the US Bureau of Labor Statistics. 

As per the UK’s National Careers Service, an experienced bookkeeper’s salary in the country is about £35,000.  

 Notably, you can get the work done at a much lower cost using expert outsourced accounting services.  The same workload processed at a much lower cost while maintaining the quality!  

But labour costs are just one part.  

 Also, consider the capital expenditure saved on infrastructure and the operating expenses saved on employee salaries, training, office rentals, equipment, supplies, and other errands associated with maintaining an internal accounting department. 

So, you can see why outsourcing provides an excellent gateway to cost reduction and cost savings.  

Additionally, outsourcing with offshore services located in a country with lower labor costs can save you even more.  

You can save up to 35-65% when you outsource your bookkeeping and accounting with Centelli.  With our hourly package, you’ll only be billed for the hours consumed, whereas our fixed-cost plan gives you a dedicated resource for 160 hours a month. Choose the option which best fits your business needs.  

Know more about our range of bookkeeping services and accounting services here. Contact us now to claim your free consultation! 

Outsource for Cost-efficient, Scalable Accounting and Bookkeeping Ops 

Suppose your company is breaking into new markets rolling out new branches. You will expand your supplier network and obviously the customer base. 

Which means your accounting operations will also scale up and become more complex.  

As such, you will have to hire more accountants and bookkeepers. You may also need to create more office space and buy new computers and devices. Upgrade your accounting software subscription to accommodate more team members as well? 

So, you might end up spending a significant amount of upfront costs even before you’ve started

centelli-cost-saving-bookeeping-accounting

Well, you can save all that money to fund your marketing and sales activities or product innovation and improvement – outsourcing provides a cost-effective alternative to an in-house operation.  

However, a sole focus on cost-cutting can be detrimental to the productivity, quality, and outcomes of your in-house or outsourced processes. 

  Unless your business is in a state of extreme difficulty caused by unfortunate events such as loss of revenue, failure of a product or project, or economic decline, consider carefully which costs are productive and which are not.  

When you’re in a tough spot, you have no choice but to cut costs.  

 Additionally, you might also need to reduce expenses during the lean or off-season.  

Laying off your staff or temporary hires or stalling infrastructure spendings becomes inevitable in that case, too. 

However, the “hire and fire” strategy may not always be the best approach. It can disturb your accounting department processes and budgets. It can also harm your brand image in the long run. 

Re-hiring can be challenging, furthermore! Likewise, the costs of infrastructure expansion may rise in the future, adding to the overall cost burden. 

Accounting and bookkeeping services outsourcing helps with a flexible and adjustable process that can meet your changing business needs. 

stressfree-business-owner-with-outsourced-accounting

It’s more cost-effective and flexible to outsource a department instead of managing it in-house, since restructuring is difficult and infrequent in the latter.  

But you must look for the best outsourced accounting services or outsourced bookkeeping services out there for optimal results!  

Remember, you can always build a hybrid accounting or bookkeeping operation blending in-house and outsourced accounting teams if you want. That’s another significant advantage outsourcing provides. 

Closing Note 

No matter which industry you operate in, all businesses want to control their unwarranted expenses. And it has nothing to do with frugality and stringency. 

Every dollar saved or spent strategically can contribute to your business growth! 

One potent method of streamlining your operations is to outsource non-core processes like accounting and bookkeeping. This approach provides a noticeable cost benefit and delivers numerous intangible advantages. 

However, if you’re thinking about signing up with an outsourced accounting and bookkeeping services, select a trustworthy service provider with relevant industry expertise.  

  

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