Advantages and Disadvantages of Outsourcing Your Business Accounting Uncategorized

The outsourcing of the accounting of a company is to entrust to an external professional, all or part of the bookkeeping. What is its function ? What are the advantages ? Are there any brakes on its use?

 

Accounting outsourcing, a simple operating principle

Outsourcing accounting is a transfer of skills to a qualified professional. To do this, the entrepreneur has the choice of interlocutors: accounting firm or management association and accounting.

The realization of all or part of the accounting operations is entrusted to one of these professionals, who will ensure according to the mission entrusted to him:

 

  1. General accounting and cost accounting
  2. Accounts receivable and suppliers
  3. Tax returns
  4. Payroll Management and Social Declarations
  5. Legal assistance
  6. Support in management (dashboards …)

Accounting professionals offer a wide range of outsourced services. The operation is simple: the ” mission letter ” formalizes and contracts the relationship between the client company and the professional for the duration of the mission.

 

Why Choose Outsourcing?

 

Initiating an outsourcing accounting operation is the result of a reflection revealing several major assets:

 

Lack of internal resources and operating savings

Not all companies can have enough budget and staff to employ an in-house accountant. Delegating this function to a professional significantly reduces the level of salaries and charges. Outsourcing thus generates substantial savings.

 

The search for expertise

Accounting, taxation and social law are increasingly complex and require knowledge and skills that can not be improvised. Tasks that it is often better to entrust to experts. An error can be very expensive! A company has everything to gain from professional advice.

 

Compliance with legal obligations and the guarantee of a cover

Reporting requirements are subject to a strict timetable. An oversight amounts to exposing oneself to late penalties and fines. The use of outsourcing makes it possible to eliminate this risk.

In addition, a chartered accountant is liable for any errors or delays in declarations, a guarantee for the entrepreneur.

 

Refocusing on the core business

Getting rid of multiple accounting and administrative tasks offers a company as a major asset to keep the focus on the conduct of its business, to be able to mobilize its workforce on its core business.

 

Brakes on Outsourcing

Some companies are still reluctant to outsource. Several reasons are mentioned:

The loss of control: the commitment made on the medium / long term brings out a certain feeling of loss of control on the part of business leaders.

The loss of confidentiality: contracts, technical patents, supplier data, purchase prices, margins … are all valuable data that a company does not like to disclose, even to a chartered accountant. This fear of loss of confidentiality still blocks some companies.

The cost of the operation: With average hourly rates between 50 and 150 € ht depending on the level of the speaker within the firm, the annual budget is between 1500 and 3000 € for the establishment of the balance sheet and annual accounts. The budget of the accounting outsourcing can sometimes be substantial.

However, in use, the balance will favor outsourcing because the benefits are greater than the brakes.

Advantages and Disadvantages of Outsourcing Your Business Accounting

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