Benefits of an Outsourced Accounting Department

With recent advancements in technology over the past few years with things such as Zoom, Google Drive, Dropbox, Office 365, Hubdoc, and the list goes on, organizations are starting to realize the benefits of using an outsourced accounting department.

In the past it was nearly impossible and at the very least, inefficient for an organization to consider using an outsourced accounting department.

Barriers to communication, document access and flow, filing and file storage made it necessary for bookkeepers, controllers and CFOs to be onsite, at least on a part-time basis.

Why Outsource?

Talent

According to a recent article from Glassdoor…

Working from home is one of the most highly-coveted perks there is — and it’s no wonder. If you could skip the morning commute, spend more time with your family and friends and work in your pajamas, wouldn’t you?

https://www.glassdoor.com/blog/best-companies-working-from-home/
More and more companies are offering opportunities to work from home these days, and employees are eating up the chance to do so. Click To Tweet

Work from home opportunities mean people are no longer tied to a geographic area in terms of landing a job. What that could mean for employers is one of 2 things:

  1. Local talent is leaving the area giving organizations less qualified workers to choose from
  2. Organizations are no longer tied to hiring from their local area and can expand their job search nationally or even internationally

This trend presents an opportunity for organizations to broaden their search for talent, as long as they are not tied to the concept of employees needing to be on-site in order to do their jobs. As I mentioned above, the need to have employees physically working in the office is a thing of the past as long as the organization is willing to put the proper processes and technology in place.

Money

In a recent live chat in the Accountant’s Coffee House group on Facebook, we discussed the ideal makeup of an accounting department. The general consensus was that accounting department should have the following things to operate effectively and ensure proper internal controls:

  • One or more bookkeepers
  • a Controller
  • a CFO or Finance Director

How much does all that cost? If you want top quality people to fill each of those positions, you need to pay top quality dollars. You may be looking at an annual salary for all 3 of those positions that totals somewhere in the neighborhood of $200,000 or more, and that doesn’t include benefits. Therefore, many organizations are finding themselves in the position of having to settle for under-qualified workers to fill each position, or only having the finances to support 1 or 2 of the positions, but not all 3.

Outsourced Accounting Department to the Rescue

Talent

Finding the best talent when choosing an outsourced accounting department is no longer a problem because you have removed the geographic barriers associated with local talent. Click To Tweet

Organizations can broaden their search nationally or even internationally to find the best possible talent to fill the positions truly needed in their accounting department which include all 3 levels of service.

Money

When considering an outsourced accounting department, money is no longer an issue, and organizations can have their cake and eat it too. The $200,000+ price tag to fill the required positions of bookkeeper, Controller and CFO is now cut in half or in some cases even 2/3 that price. It’s not out of the question to hire an entire outsourced accounting department for $60,000 to $70,000 per year, and don’t forget the organization doesn’t have to pay employee benefits on top of that. 

Conclusion

To put it simply, the end result of outsourcing your accounting department is the ability to acquire top-notch talent at an affordable price. If you have been on the fence, perhaps it’s time to consider this option.

To Your Success,

Bob Swetz

P.S. If you would like to dig deeper into this topic you have a few options:

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  1. Pingback: Internal Controls Cost Too Much Money - Bob Swetz Online

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