Accounting and bookkeeping services for accountants
Accounting and bookkeeping for accountants refer to as the process of accumulating, organizing, storing, and accessing the financial information base of an organization, which is required for two reasons; supporting the day-to-day operations of an organization and preparing financial statements, tax returns, and internal reports.
Whereas, Accounting is a totally different process which involves functions like issuing payments, producing monthly reports, processing accounts payable and tax preparations. This process is performed by trained professionals generally referred to as Accountants. An accountant maintains and updates the different accounts for an organization. They also prepare balance sheets that help in determining an organization’s financial position.
Both the processes of Accounting and bookkeeping for accountants must not be confused to be the same. It is important to understand the basic concept of both. In brief words, Bookkeeping deals with organizing data and accounting deal with converting the same into some valuable information.
Challenges of in-house accounting business
Most organizations struggle to handle the business accounting service on their own. Therefore, they are left with two choices; hire an accounting staff or outsource the accounting business.
Having an internal accounting business requires additional resources which are not at all cheap. It may also result in high costs and low benefits at sometimes. It becomes difficult to set rules which are time-consuming. The salary of the employees, benefits, office space and accounting software also needs to be taken care of. Having said this, makes it look difficult; however, it’s not and it requires a lot of expenditure and expertise which is hard for the startups.
Benefits of Outsourcing Accounting and bookkeeping for accountants
Accounting outsourcing helps an organization to raise their bottom line. It can also help in eliminating the unnecessary steps and results in a better performance of the organization. The bookkeeping and the accounting work gets done on time. You are more able to concentrate on strengthening the core processes of your business. Outsourcing offers advantages as:
1. An organization can concentrate more on important aspects of growth.
2. Decision making and forming strategies become simple.
3. Regular reporting keeps an organization updated with its financial statements.
4. Helps in reducing expenditure on salaries, payroll taxes and other services associated with in-house staff.
5. Assistance in services like payroll processing, cash flow analysis, budget analysis, preparation of balance sheets, and profit-loss statements.
The biggest advantage of outsourcing is cost cutting and getting service from experts at very competitive rates. Whereas, hiring and selecting employees can consume a lot of your precious time. Moreover, you need to have space and a great facility for new employees. Outsourcing is just not limited to startups or small businesses. Nowadays, well-established companies also prefer outsourcing and reducing costs. With some safety steps, outsourcing can be the best option for an organization.