Agilience Asia

27 February 2023

4 min read

Why Business Owners Should Consider Outsourcing its Accounting & Finance Function

"By outsourcing your accounting and bookkeeping needs, you can focus on growing your business while leaving the number crunching to the experts"

Managing the financial aspect of a business can be a formidable task, particularly for small and medium-sized enterprises (SMEs). Hiring a finance team to handle bookkeeping, financial reporting, bank account activities, and data analysis can be a challenge, both in terms of finding the right person/ team and staying within budget.

Contrary to popular belief, Accounting and Bookkeeping functions do not necessarily have to be performed in-house. Each business is unique and business owners must first evaluate their own resources, capability, and capacity before deciding what works well for them.

Here are some key benefits:

Cost-Effective and Efficient

Outsourcing tends to be more cost-effective than having an in-house team as this eliminates the need for recurring costs, such as salaries, benefits, on-going training, and other employment related expenses.

Separately, there are also often hidden costs that can be saved in the longer run, particularly on-going management time required to oversee the function and much more when there are staff retention issues, which are common these days. Imagine the pain of recruiting to replace, train them, and then potentially having to repeat this process again 6 months later.

Businesses can tap into such provider’s expertise and resources at a lower cost without compromising on quality. Outsourcing such functions can also provide businesses with increased efficiency and productivity as business owners can then focus on core business activities.

Adoption of Best Practices & Meeting Deadlines

By partnering with an outsourced provider, other than supporting you in meeting all the necessary reporting/ regulatory deadlines, businesses can leverage on the expertise of a team of professionals on their input to make cognizant financial decisions. Such providers are exposed to a broad range of clients and industries, allowing them to suggest best practices while ensuring the business remains compliant to any changes in regulations and minimise the risk of any penalties.

Financial Automation & Adaptability to Change

In recent years, the financial reporting process has undergone significant improvements with the adoption of technology and automation tools. Other than being able to provide real-time financial data and reduce manual work, these tools also help to streamline accounting functions, digitalise and reduce the risk of errors, freeing up time for more critical tasks and hence providing a competitive advantage over in-house accounting.

As these tools are now more mainstream and economical, businesses are encouraged to adopt cloud-based accounting software enhanced with data security to produce accurate and reliable real-time reports tailored to their specific needs, – allowing them to be nimble and agile, particularly in light of the constantly changing business environment.

Financial Intelligence

Tax planning, financial forecasting, cash flow management, and other financial-related tasks can be intimidating to some business owners. Availing outsourcing services can offer business owners the access to a diverse range of skills and knowledge that might be challenging to find in-house.

Such professional advice and financial guidance go a long way in providing a fresh perspective to business owners to make informed decision to capitalise on future business opportunities and materialise the true potential of their business.

Though outsourcing the Accounting and Bookkeeping functions has numerous benefits for businesses to be more efficient and future-ready, typically we see such a move is only considered by business owners when there is a problem, such as unreliable and not fit for purpose financial data, problems with recruiting people with the right expertise, etc.

It is important to carefully research and compare the reputation and capability of potential outsourcing providers.

At Agilience Asia, we have aided businesses of various sizes and demands in their accounting & advisory needs, to achieve a peace of mind, efficiency, and access to valuable insights and solutions for their success. We embed sustainability practices into our operations (us and our clients) by being 100% paperless.

We will be happy to have a chat on how we can be a valuable partner for your growth journey.

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