In today’s world of continual cost cutting and innovation businesses are trying to determine how they can successfully reduce overheads, increase profits and deliver a better product or service than last year to stay ahead of the competition. One way businesses are achieving this successfully is through the principle of outsourcing.
has penetrated nearly every major identifiable business department in
the western world whether it be sales, customer service, advertising,
production and even bookkeeping, accounting and financial management.
This trend in itself proves that the expertise is there so why not seek
it out and take advantage of it? Well, the reason that businesses often
do not consider this as an option is management do not want to risk
compromising the products or services that they deliver to customers.
outsourcing can be achieved successfully at a basic level without
compromising the quality of a business’s products or services can this
be done across all business units? Time has proven that outsourcing can
be achieved with a level of success as everyone will have experienced
the product of outsourced sales or customer service when engaging multi-national and international companies. But What if a business considered
outsourcing the bookkeeping and accounting functions in its operations?
Could a business unit that is so critical to everyday operations and
carries a high level of information sensitivity be successfully
When somebody thinks of the term “outsource” they
generally think overseas but this is not always necessary to achieve the
results that are sought after. This is true especially if someone were
looking to outsource a business function which requires a greater level
of knowledge and expertise of national law and customs they would feel
more comfortable outsourcing domestically to a business which
specialises in that particular need. In today’s marketplace in Australia
the domestic market is very competitive in the industry of accounting
and bookkeeping services.
Today if a business requires personnel
to execute bookkeeping or accounting functions that business would
typically first look to employ somebody internally to fulfill this need.
However there are a number of factors that should be considered if a
business is seriously evaluating whether to hire internally or engage an
external accounting or bookkeeping firm to fulfill the immediate and
foreseeable financial needs of the business.
Overheads are one of
the greatest considerations of taking on extra staff. Beyond what the
basic wage and entitlements are of employing somebody you also need to
consider other employment costs. Other employment costs which a business
takes on generally with a new employee are the recruitment and training
costs, staff amenities (tea and coffee etc.), additional office space,
cleaning costs for the additional office space. The list could continue
on but these are some of the main costs incurred when taking on new
staff. But what if a business could engage someone to take care of the
businesses bookkeeping and accounting requirements without having to
introduce any of the overheads?
Engaging an external domestic
bookkeeping or accounting firm could be a game changer for many small
and medium sized businesses. Having a professional bookkeeper or
accountant that can pick up the workload of a business without
introducing the overheads listed above is probably something that many
businesses have not even considered and have just come to expect
holistic employee costs a bi-product of doing business. This does not
need to be the case though as we will now explore the advantages of
outsourcing the bookkeeping and accounting functions of a business.
advantages of engaging an external or public bookkeeper or accountant
for the financial requirements of a business are as follows. A public
accountant or bookkeeper must keep up professional development
requirements in order to maintain their registration with the tax
Practitioners Board. Both accountants and bookkeepers are required to
have specific qualifications in order to practice in the industry this
ensures that the service which is delivered is generally of a high
standard. In comparison to this internal bookkeepers or accountants
require neither in order to execute their job function.
If you are considering outsourcing your bookkeeping follow the link for more information.