A guide to outsourcing your Accounting and Payroll

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There is a saying that “Behind every good businessperson there is a great (outsourced) Accountant.”  

As companies strive for greater efficiency and more effective working practices, there is an opportunity to divest in-house functions that are not areas of core expertise and that can be fulfilled at a lower cost and with less commitment of internal resources. Outsourcing is an obvious way of reducing costs, reducing resource investment, reducing management distractions, and maintaining focus on core business objectives.

An area where outsourcing is a clear solution for many businesses is the accounting and payroll function. Financial accounting is at the heart of any company’s success and the key to navigating a business towards success is by effectively managing income and expenses and to do that a company needs a great finance and accounting team.

To be sure of a great finance and accounting team, many businesses are divesting themselves of their in-house resource and transitioning to Outsourced Accounting Services. Outsourced expertise has huge advantages as remote working becomes more and more a way of business life and as companies move towards digital solutions in all functions of their business.



What is Outsourced Accounting?

When a third-party company fulfills the accounting and financial functions for a business. This would include bookkeeping, payroll, financial reports, management accounting, tax, accounts payable, accounts receivable, following up debtors, and any other accounting related matters.



8 Reasons why Outsourcing accounting and payroll is a great idea!

  • Save Money and reduce overheads
    Recruiting, training, salary, benefits, software and hardware, office supplies and costs of employment will be saved. Less chance of mistakes and errors, which can have a significant cost attached.
  • Save time and be more efficient
    Company owners and managers will spend less time overseeing accounting staff, the bills and the company payroll and will be able to spend more time concentrating on running and growing the business. Business owners and managers are the experts in their fields, and they will have more time to concentrate on using their expertise to achieve business goals, company growth and managing the day-to-day business.
  • Access to financial, accounting and payroll experts
    Outsourcing provides even the smallest company with a team of expert accountants with a wide range of knowledge and skills. This ensures all financial tasks are performed on-time and accurately and your business won’t be liable for penalties for late filing, under payments or inaccurate reporting.
  • Save on Technology costs
    By outsourcing there will be no need to buy hardware or software for any financial or accounting activity. Your outsourced accountancy team will have all the necessary software and hardware and be experts at using it.
  • Improve processes
    By outsourcing the accounting and payroll functions, companies will receive the most up-to-date processes. Outsourcing professional services will give companies access to the latest technology, software, knowledge and thinking. This will lead to improved financial accounting processes, which in turn will mean an improvement in efficiency and timelines for reporting, meeting regulatory deadlines and data. By using the latest software and improving financial accounting processes, companies can expect improved payroll processes, improved service levels, reduced costs, and better cash flow.
  • Reduce risk
    Outsourcing the financial and accounting processes will provide companies with a third party to audit the money trail within the business. This will significantly reduce the possibility of internal fraud and theft.
  • Resource when needed
    Outsourcing the accounting and payroll function provides flexibility in a company’s resources. When companies are busy, more external resource can be used and when less busy, a reduced level of external accounting and payroll service may be required.
  • Confidence and peace of mind
    Outsourcing to the right company of accounting and payroll professionals will ensure that accurate accounting records and reporting are always available, and companies will have a clear view of their financial position, which will give peace of mind and importantly, the ability to make accurate and informed decisions. By outsourcing, companies can be totally confident that their financial information is correct and there is a team of experienced accounting professionals available to support them.


Who is outsourced accounting for?

The world of outsourced accounting has changed. It used to be viewed as a resource for only the largest corporate companies. But advancement in technology and a more fragmented and remote workforce has meant that outsourcing now makes sense for smaller businesses and organisations.

An outsourced accounting and payroll service would be suited to:

  • Small to medium businesses who do not need a full-time accountant and a chief Financial Officer (CFO) but require more skills than the current office manager, bookkeeper, or administrator.
  • Growing companies that want to scale up their accounting and financial abilities
  • Companies that are struggling to recruit suitable staff, who will need training and ongoing support and may not work out. Outsourcing is the perfect solution.
  • Not-for-profits and Charities who find accessing experienced financial professionals difficult for their specific accounting and payroll needs.
  • Business owners who need temporary help because of staff replacement issues, an accounting audit or possibly, end of year reporting etc.
  • Any business! because outsourcing the accounting and payroll functions is a great option. Whether a company has 5 employees or 500, all companies have compliance, payroll and reporting requirements as well as the need to concentrate on their core business.

Related: How to transition from In-house Accounting to Outsourced Accounting?



Why use Azure Group as your outsourced service provider

If you’re thinking of making the switch from in-house to outsourced accounting, seek advice, and get in touch with us. We are here to help and to make this process as smooth and comfortable as possible. You’re outsourcing to save money, not to save on quality – we guarantee both.

Azure Group have a specialist Business Accounting team, all located in Australia who manage the outsourced accounting function for a myriad of businesses. Our team consists of highly talented and experienced accountants led by senior finance executives who each have substantial commercial background and have worked with various sizes businesses across a wide range of industries. Our team will become highly knowledgeable about your business and will feel like part of your company. We measure our success by yours.
Get in touch >

Have you noticed our Friday Expert Tips... here's one that relates to Accounting

“Running payroll can be complicated and time-consuming. There are a lot of legal requirements, which means there are serious risks to getting things wrong. Many business owners prefer to leave it to the experts and outsource their payroll."

Related: Your Weekly Accounting must Do's and Dont's

 

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Azure Group
Azure Group

Azure Group is the leading Chartered Accounting, Business Advisory and Strategic Advisory firm supporting the growth & success of fast growing entrepreneurial businesses.

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