Many companies in the United States and Europe are now outsourcing many of their secondary functions. Aside from customer care, services such as information technology, public relations, and administrative functions are now offshore. One of the functions outsourced by companies is accountant services.
While there is some controversy with outsourcing, companies are still sending their administrative, IT, and customer care needs increasingly to specialists abroad. The advantages of accounting outsourcing services are just too good to pass up.
Lower Overhead
Companies outsource their accountant services because of the much lower cost, compared to if such functions remained in-house. Through outsourcing, companies can reduce their overhead while maintaining the quality of work.
Salaries in other countries are more competitive than with their Western counterparts. The fact that it is possible to get the same quality work for a much lower price, it is harder to justify keeping an in-house team to do accountant services.
Additionally, outsourcing cuts down on many infrastructure costs. An in-house service requires their own office space, their own computers, and a share in the office supplies. This unit can use up electricity and water. Outsourcing greatly minimizes these costs, if not eliminating them.
Increased Flexibility
A common description for today’s economy is it is globalized. The core of a business might be in New York while its IT department may be in India and the administrative services are in the Philippines.
A global economy also means globalized time. With the Internet, globalized companies now have an efficient way to coordinate their actions even if the employees are spread all over the globe.
This global time gives companies the flexibility to meet the needs of clients. As most of the clients of a core business are local (meaning from the same time zone), their concerns are now handled 24 hours a day, 7 days a week.
As most accounting outsourcing services maintain 24-hour work shifts, this allows them to complete tasks in less time. While individual teams handle specific clients, an all-day, all-night workforce means your company does not have to wait for the next day to have your needs addressed.
Focused On What Is Important
Finally, companies that outsource functions like accountant services can focus more on their core products and services. A business can leave secondary functions to people whose core services are the secondary activities. This ensures more productivity in the long run.
This way, you do not have to hire and train people for those functions. The time and energy your human resources division may spend looking for these specialists could be better spent looking for more talent for your core business.
With your focus on your core products and services, those can be made better and thus, further increase your edge over the competition. This high level of efficiency and feasible approach is why it is attractive for many companies to get accounting outsourcing services.