It is an important decision to outsource the bookkeeping to an accounting firm especially when you don’t have the in-house accounting expertise for your business who can professionally handle bookkeeping issues for your business. For any organization, it is important to assess as to what extent the bookkeeping services can be outsourced.
In order to enable you to assess the proposed benefits of outsourcing your bookkeeping activity; we have mentioned some of the top reasons why you should think of outsourcing your bookkeeping.
1) Focus on core strengths of your business
By outsourcing the bookkeeping function to a professional accounting firm, you may focus on ways through which you can grow your business in a competitive world more efficiently. There are lot of other things that you can do for your business which can bring sustainability in business operations. So, trust your bookkeeping service provider and let them do the bookkeeping functions for you as they have been professionally trained for this activity.
2) Deploy your internal resource on other value added tasks
As the bookkeeping is a time consuming activity. It is, therefore, always recommended to deploy your internal resource on some other value added tasks and outsource this task to someone who knows better than your staff. You can always find the best bookkeeping talent with an industry experience at a fraction of the costs.
3) You just can’t hire a team of bookkeepers on a payroll
It is not possible for you to hire a team of bookkeepers on a company’s payroll. Also, it is not just the matter of payroll expense, your profits will be compromised when you have to arrange a big office on a rent. An outsourced bookkeeping provider can easily scale with your business as it grows.
4) Avoid tax penalties of the CRA
Tax filing on wrong accounting information and non-compliance with the CRA may result in facing you with CRA penalties. At least, outsourcing will ensure that there is someone who has an eye on changing tax landscape. Bookkeepers may also protect you from tax penalties of the CRA by keeping your accounting records up to date.
5) Impact on financial information & profitability
Securing financial information has become a challenge for most of the companies. Protecting financial information requires you to add a layer of complexity to your business operations. That is the reason why most of the businessmen want to hire accounting firms to make all data security arrangements. This can save businesses money and a source of increase in profitability.
6) Transition period is too long; Perception Vs. Reality
Even if there are so many reasons that we have discussed above, still business leaders raise their voices for long-awaited transition period. They always ask the question from the bookkeeping service providers that how you are going to migrate my data and how long will it take to complete the bookkeeping for a period. There has been a tech revolution in the bookkeeping & accounting industry. In the past, bookkeepers used to visit different offices for the collection of documents and their work was largely paper based. But now technology is automating endless repetitive tasks and as a result, human error and transition time has reduced greatly.
GTA Accounting is the right place for your business’s requirement for outsourcing the bookkeeping activity. As a CPA firm, we not only do professional Bookkeeping for our clients but also handle their corporate taxes, give time-to-time tax advisory services and facilitate in preparing financial statements as well.
Sohail Afzal, CPA, CMA, MBA
Sohail Afzal, (CPA, CMA, MBA) is the founder & CEO of GTA Accounting Professional Corporation. He is a highly experienced Chartered Professional Accountant and businessman himself and understands the challenges that many businesses face when it comes to cash flow management. As an experienced business consultant & tax advisor, he is helping companies grow by providing the technical, financial, and contractual information necessary for strategic decision-making.