Startups are often challenged to streamline their back-office processes, eliminating their focus from product development and growth. Many startups businesses have turned to the latest technologies such as accounting software to perform day to day business functions. But without the right personnel and processes, these can be extremely complicated.
Moreover, not paying peculiar attention to finance and accounting arises complications for entrepreneurs later on. It can hinder business growth. Instead of handling accounting and finance operations, on your own, you must look for an in-house accountant or hiring outsourced finance and accounting services.
For companies that don’t have much accounting work at their disposal, outsourcing is the idle option. Some of the indications that your startup demands accounting services are increased expenses. When the expenditure increases for a business, it’s time to prepare financial reporting.
For a startup, the accounting and finance processing such as business licensing, expense tracking, monetary planning, revenue accounting, cash flow analysis, and tax preparation are crucial. So, if you opt for outsourcing these requirements you can embrace advantages that will boost your business growth. Go through this blog to explore more details on why startups should outsource accounting and finance services.
#1. Focus on core business
By outsourcing the accounting and finance requirements to another firm, you can consume all the time and energy on the significant functions of your organization. This will help in improving the sales and profitability of your business. In fact, as a startup, it is imperative for you to focus on gaining customer retention and profitability to sustain market competition. Hence, outsourcing accounting and finance services will be a great option for you, where you can entirely converge on strengthening your business.
#2. Access to skilled professionals
By employing the services of outsourcing firms, you can get access to a proficient team of accountants without having to actually recruit them. Besides, you have the opportunity to interview the candidates and select them from the pool of the experts. Thus, only experts and highly proficients will work on your project, which assures you the high-quality end results.
#3. Save on costs and time
You need to only pay for the number of hours the outsourcing company has worked for you while you hire third party resources for the requirement. When you hire an outsourcing service provider, you save employment costs such as salaries, payroll taxes, benefits, training, and recruitment expenses. Only hire staff that will focus on your main business goals rather than auxiliary services.
With outsourcing, you will be able to exclude unneeded overhead expenses in those areas. Startups need to concentrate on the return of every dollar they spend and be willing to deploy resources where they can maximize their ROI quickly.
#4. Offers easier option
If you hire in-house staff, you have to perform functions such as recruitment, training, and retention of employees. Whereas while outsourcing finance and accounting services, you have to only remain by the contractual obligations.
#5. Quick turnaround solutions
If you are a startup based in a nation like the US, UK, etc. then hiring the outsourcing services of an Indian company can be an advantage. The finance and accounting tasks assigned in the evening can be accomplished by the start of the next day’s working hours due to the time zone difference. With quick solutions, you can expand your business quickly and efficiently.
#6. Minimize Risk
Handling accounting and finance is a painstaking task, And, reporting errors can be costly as the fines and interest charges for payroll and income tax errors are huge. Litigation costs and judgments levied against an entity can place it out of business overnight. Putting the responsibility for these types of expenses on trained professionals will exceedingly reduce the risk of losses to your organization.
In addition, although internal accounting software supports basic accounting needs, in the beginning, the accounting, finance, and tax processes will become more complex as your business expands. Ultimately, more complex needs will come into play, such as financial modelling and budgeting (requires specialized skills). If you opt for an outsourced accounting provider, you will be assured with the right foundation in place when these requirements arise.
Besides, outsourcing enables you to concentrate limited yet skilled resources on your core business so you can be more profitable. You will be able to contribute more time with your customers so that your business can offer them a higher level of service.
Hence, more and more startups are looking for finance and accounting services outsourcing India to empower their business growth. Outsource accounting or finance requirements brings enormous benefits for a newly established business. As mentioned earlier, they need to focus on acquiring and retaining customers to maintain the stability of their business. In this case, the auxiliary tasks should be given to vendors so they can offer ultimate customer services to their target audience.
Are you looking for finance and accounting outsourcing services?
ScaleUpYourTeam can offer you standardized accounting and finance services while you remain focused on your core business. The seasoned professional will handle your task and deliver you the most accurate results that will help to grow your business. From payroll processing to fetching financial reports, we can efficiently deliver you the services.