Thu Jul 29, 2021 | Alan Lefkowitz | Accounting, Financial Reporting
Financial Insights With An Outsourced Accounting Team
Do you own a small business? If so, hiring an accountant is key to truly understanding your business’s financial health.
Historically, many businesses hired bookkeepers and accountants from several firms, outsourcing some and keeping some in-house. While hiring accountants through various firms worked for companies in the past, this method has since become outdated, expensive, and inefficient to own a business’s finances in order.
However, as remote technology has improved, many businesses have begun transitioning their financial management to an outsourced, integrated accounting team. Outsourced accounting teams are more affordable, work more consistently and effectively, tailor their services based on your company’s specific needs, and can provide valuable accounting insights to help your business succeed.
Hiring an outsourced financial management team can provide several benefits for your business. Read on to learn five ways an integrated outsourced accounting team can provide crucial financial insights to your company.
1. They Work as One Team
Many businesses fulfill some accounting roles in-house and outsource other tasks to CFOs or outside firms. As a result, several different people and sometimes companies may handle a company’s finances daily, which can create confusion and poor communication.
However, taking an integrated approach to accounting keeps your finances within a unified team rather than several different entities. All of the members of an outsourced accounting team have experience working together, communicate with each other effectively, and know their roles within a tiered financial management system.
Imagine that your business does not take a team-based approach to accounting and instead hires an in-house bookkeeper, an outsourced financial controller, and an outsourced CFO. None of these accountants work in the same building, and their roles within your organization feel separated.
These three accountants have probably never worked together in the past and do not work together on other projects. As a result, they may have poor communication, personality conflicts, and varying workstyles that prevent them from creating intelligent financial insights for your organization.
In contrast, the members of accounting teamwork as a team rather than as individuals. This team-based approach allows the group to produce financial insights that help your organization grow instead of remaining stagnant.
2. They Take a Consistent, Objective Approach
Hiring a mixture of in-house and outsourced accountants means that each member of your accounting team has different levels and types of experience. They may also take different approaches to their work and utilize other procedures to accomplish tasks.
As a result, these individuals may have trouble working together to meet the goals you have set for your organization.
When multiple people approach a task with varying mindsets and procedures, there may be tension or frustration as they attempt to combine their efforts toward a single goal.
For example, the bookkeeper may be rooted in manual, paper-based practices, while the CFO uses an automated information management system. Often, these two processes do not combine smoothly.
In contrast, an outsourced accounting team undergoes the same training, uses the same procedures, and takes a single-minded approach to your company’s finances. Often, such teams use the best practices in the industry and update their systems regularly to deliver the best accounting services to their clients.
Additionally, taking a consistent approach to your business’s accounting reduces the room for error. While an in-house bookkeeper’s manual practices may not translate well to the CFO’s automated system, an accounting team’s consistent methods flow together and create a small risk of error.
3. They Use the Best Tools and Technologies
Outsourced accounting services specialize in making the accounting process more efficient. They also focus on delivering the most accurate services and using their unique skills and experiences to increase each client’s profits.
To accomplish these goals, accounting teams use the best tools and technologies to optimize their accounting services.
Using automated software is the future of efficient, professional accounting. Specifically, firms that use modern technology in their accounting services give the following benefits to their businesses:
- Automate activities to save time
- Reduce the risk of human error
- Gain insights from their reporting
- Provide clear reports to the companies they serve
- Have access to accurate, real-time accounting data
You can trust outsourced accounting teams to utilize the best, most efficient technology and tools to help your business better understand your finances.
4. They Follow a Cost-Effective Workflow
Hiring a mixture of in-house and outsourced accountants can get messy and expensive quickly. Some of their duties may overlap, wasting their time and your money.
However, because an outsourced accounting team utilizes effective communication and an efficient division of duties, you can be sure that their workflow is cost-effective and sensible.
The best accounting teams give most of the routine, day-to-day tasks to the bookkeeper, the remaining functions to the financial controller, and advanced duties to the CFO. Each team member spends time on tasks they are qualified for, creating an efficient workflow.
Using this cost-effective workflow allows each accounting member to excel within their field, providing valuable financial insights to benefit your organization’s future without wasting your money.
5. They Improve Financial Visibility
Finally, outsourced accounting teams improve the visibility of your accounting processes. In other words, they give you and your high-ranking employees a clearer picture of your business’s finances.
Using technology-based accounting services, you and your employees can access the real-time data and simplified reports you need to stay on top of your finances and make any necessary changes. Viewing these reports allows you to:
- Quickly find the accounting data you need
- Review cash flows regularly
- Notice errors faster
- Prove your performance to investors
- Create accurate forecasts
- Adjust your strategy as your needs change
If you are looking for a skilled accounting team to provide insightful guidance to grow your organization, we can help.
At CFO Strategies, our team offers the best strategies customized for your business to help boost profits and cut excess costs. In addition, CFO Strategies help management understand how their business is performing financially.
Contact CFO Strategies at (855) 732-7861 to schedule a consultation with our team or learn more about our integrated accounting services.