Why SMEs should outsource Accounting and Finance services
Streamline operations, reduce costs, and gain expert insights with outsourced Accounting & Finance services tailored for SMEs.
Why SMEs should outsource Accounting and Finance services
Why SMEs should outsource
Accounting and Finance Services
Why SMEs should outsource Accounting and Finance Services
An unstructured accounting and finance system is a significant contributor to the downfall of SMEs. Without outsource Accounting and Finance services, financial strategies often become disorganized and lack proficiency. SMEs may find themselves managing a complex web of confusion, leading to financial downfall, poor cash flow management, incorrect bookkeeping practices, and regulatory violations.
Financial statement management
Budget and capex planning
Tax planning & compliance
Decision making
Cost- analysis of services and products
Forecasting future growth
Performance monitoring
Growth strategy and risk management
Re-investment plans
These services are sometimes overlooked due to limited recourses and budget, this is where outsourcing plays a role; by hiring external accounting firms or FP& professionals, SMEs cannot just save money but also able to drive productive growth in the company.
The Benefits of Outsourcing
Accounting and Finance for Small
Businesses
Small and Medium Businesses struggle with limited finances, less skilled employees, market competition, fulfilling the legal tax laws, regulations and not having robust tools and technology. Therefore, outsourcing these services externally removes all these hurdles in the company’s growth. An outsourced accounting firm take a hold at over-all finance services from looking after payrolls tasks to internal auditing to mitigate frauds, they make sure to offer an advanced outcome. Some of the key benefits include,
Financial Efficiency
Cutting cost is the main objective of an SME. Outsourced accounting and finance services save the money of small businesses by cutting the cost of in-house overhead, which saves the amount of salaries, compensation and Benefits plans, reduce the employees training cost, and the extra cost of office space and supplies.
Prioritizing Core Functions
When a specialist handles the finance task entirely, the company gets the chance to focus on other core areas without getting worried about financial responsibilities. It not only saves the time of company but also lowers the burden of handling intricate tasks, such as payrolls, cashflow management, coordinate A/P and A/R functions and handling exact financial reporting.
Financial Efficiency
Cutting cost is the main objective of an SME. Outsourced accounting and finance services save the money of small businesses by cutting the cost of in-house overhead, which saves the amount of salaries, compensation and Benefits plans, reduce the employees training cost, and the extra cost of office space and supplies.
Prioritizing Core Functions
When a specialist handles the finance task entirely, the company gets the chance to focus on other core areas without getting worried about financial responsibilities. It not only saves the time of company but also lowers the burden of handling intricate tasks, such as payrolls, cashflow management, coordinate A/P and A/R functions and handling exact financial reporting.
Professional Expertise Access
Financial goals and organizational targets are integrated together with the help of FBPs, they get feedback from various branches of a firm and create a relatively effective company’s FP&A which drives growth.
Updated Information
External accountants are well-updated with the current tax and financial laws, which saves companies from penalties, they remained informed with the latest trends in market for accurate financial records and timely planning.
Professional Expertise Access
Financial goals and organizational targets are integrated together with the help of FBPs, they get feedback from various branches of a firm and create a relatively effective company’s FP&A which drives growth.
Updated Information
External accountants are well-updated with the current tax and financial laws, which saves companies from penalties, they remained informed with the latest trends in market for accurate financial records and timely planning.
Next-Generation Technology
External audit firms and finance specialists have licensed tools and Progressive Technology Solutions, which provides expediency and accuracy. They are equipped with modern software’s that deliver better data management and quicker processing. These tools can cost an arm and leg for an SME to buy them on their own.
Optimized Accuracy
For precision of financial data, bookkeeping practices and observance of laws and regulations in an accurate manner, the trained personals assist by minimizing errors, the risk of fraud by employees and clients, they also stick to strict methodologies of the management of company’s data, and result in a heightened company’s reputation
Next-Generation Technology
External audit firms and finance specialists have licensed tools and Progressive Technology Solutions, which provides expediency and accuracy. They are equipped with modern software’s that deliver better data management and quicker processing. These tools can cost an arm and leg for an SME to buy them on their own.
Optimized Accuracy
For precision of financial data, bookkeeping practices and observance of laws and regulations in an accurate manner, the trained personals assist by minimizing errors, the risk of fraud by employees and clients, they also stick to strict methodologies of the management of company’s data, and result in a heightened company’s reputation
Data Safeguarding Solutions
Outsourced consultants use the encryption methods, cloud base data storage, authorized access control and follow other security protocols and data risk mitigation strategies that keep the confidential data of the company safe from unpermitted access, viruses and attacks.
Streamlined Tax Management
External auditors operate as facilitators between the official tax supervisors and the firm, they over see the most demanding tax management duties according to the legal laws and regulations, they also deliver reliable tax filling and returns and lower the risks related to Tax.
Data Safeguarding Solutions
Outsourced consultants use the encryption methods, cloud base data storage, authorized access control and follow other security protocols and data risk mitigation strategies that keep the confidential data of the company safe from unpermitted access, viruses and attacks.
Streamlined Tax Management
External auditors operate as facilitators between the official tax supervisors and the firm, they over see the most demanding tax management duties according to the legal laws and regulations, they also deliver reliable tax filling and returns and lower the risks related to Tax.
Key Obstacles in External
Accounting and Finance
- Some external firms have hidden costs for additional services, project extension cost and high volume of work cost.
- Hiring external accountants from different regions with different language and way of communication can rise the chance of mis-understandings.
- External partners that don’t prioritize the security of data may risk the company in losing all of their confidential data.
- Outsourced firms with Low-skilled workers can end up causing more loss than benefit.
- Advanced tools and technologies are a must for any business function to survive, partners who fail to adopt new tools and technologies can’t be beneficial in the modern day.
How SMEs can overcome these
challenges by outsourcing SS&Co.
- Accounting & finance function advisory
- Tax & Compliance
- External audit & assurance services
- Business transformation
- Tax advisory
- Accounting, bookkeeping, & financial reporting
Meet the Expert
Haroon Farooq
Team Lead Accounts and FP&A • Financial Reporting
Haroon Farooq, Team Lead of Accounts & FP&A at SS&Co, driving financial insights and precision in fintech consultancy.
