Some of the facts which business owners face when accounting and bookkeeping services are not outsourced often go ignored. Have a look at some basic facts stated below.
Problems faced with in house accounting department:
- Poor selection of candidates for accounting section that results in poor accounting practices at organization
- In smaller organizations it results in higher accounting errors and omissions because of absence of competent professionals overseeing team which would otherwise add to costs
- High wages of in house accounting department personnel
- It takes more cost to go online besides maintaining a full-fledged physical accounting setup in case management wants to review reports remotely/virtually.
- Routine tasks take more time for processing in absence of sophisticated tools
- Poor working capital management
- Employer taxes
- Disproportionate and varying cost of utilities
- Cost of accounting department office space
- Software & hardware for accounting personnel
- Month end closing is taking more than 1 month
- Accounts not being reconciled properly
- Missing payments due to revenue leakages
Solutions to the stated problems:
- By outsourcing bookkeeping services, you will save most of your accounting costs by reducing/eliminating the followings:
- Cost of hiring and retaining competent professionals
- High wages of other accounting staff
- Additional costs/losses because of errors/omissions
- Employment related taxes
- Cost of office space
- Cost of utilities
- Software amortization
- Depreciation of computers
- Learning curve
- Employee absentee and turnovers
- Only chartered accountants close the period within minimum stated time
- Your accounts are reconciled on weekly basis and with due care using cloud accounting solutions
- The revenue cycle is also audited to ensure no revenue transaction is omitted
Benefits at Escrow Consulting Group:
- If not all then most of your costs reduced related to accounting department
- Satisfaction and peace of mind with accurate reports and financial results
- Timely monthly closing to review financials
- Weekly reconciliation of accounts results with weekly financial insights for better decision making by the qualified accountants
- Complete revenue cycle audit to spot revenue leakages resulting in increased revenue
- Access to broad range of services including business planning, financial KPI dashboard and financial statements
- Additional reports/services available at minimum costs
