Regrettably, outsourced accountants have frequently been viewed as resources exclusively available to major accounting firms and massive multinational corporations. Fortunately, an increasing number of small and medium enterprises are discovering that they can also reap significant advantages by employing an international accounting team.
What kinds of savings are these large corporations and accounting firms benefiting from? What savings might you be able to leverage to grow your own business?
✅Training Duration – To begin with, here’s a clever way to save time. When you onboard a new employee in-house, significant hours will be dedicated to their training. This time could be better spent acquiring new clients or enhancing current projects. In contrast, your outsourced accountants are already proficient in all matters related to accounting that you may require assistance with. The only “training” needed from your end would involve sending an email or setting up a brief Skype call for any specific instructions you might have regarding using your own procedures (once your outsourced accountant understands how to follow your procedures you’re done on training). All future accountant training for keeping them up to date on all tax changes are performed by BOSS with their BOSS Tax Training Program™.
✅No sick leave (or any leave costs) – You won’t be responsible for covering the wages of employees who are unable to work because of illness, or any other leave costs you would normally be accountable for.
✅No additional software (and you won’t waste time familiarising yourself with new updates and patches) – You can avoid the hassle of keeping up with the latest accounting programs. BOSS outsourced accountants are knowledgeable on the top accounting software packages, meaning you won’t incur expenses for training in-house personnel… a significant cost reduction if your company is large enough to necessitate multiple individuals managing your financials.
See: https://boz.com.au/remote-bookkeeping-software/
✅No HR required – The recruitment process can be quite costly, especially when you take into account expenses related to advertising, time spent on interviews, and the time invested in training as previously noted. However, these costs are eliminated when partnering with outsourced accountants.
✅Infrastructure – Your outsourced accountants costs as far as furnishings, parking areas, additional office space, or computers for which you would normally be responsible for paying are all taken care of by
✅Government deductions – Naturally, you will not need to handle aspects such as superannuation, payroll taxes, and workers’ compensation.
✅Time saved on 1st work review – BOSS reviews all work by senior accounting staff before being handed back to you.
✅Fixed fees – On certain accounting outsourcing options, clients have the choice of having all of their work done on a fixed fee basis. All jobs are agreed up before work starts eliminating any budget overruns and nasty costly surprises.
So what savings are these accounting firms and big businesses enjoying? What savings could you be using to expand your own business?
- Training time – Let’s start with a sneaky saving. Any time you hire someone new in-house you’re going to have to spend time training them. You could be using that time to bring in new clients, or work on existing work. However your virtual accountants are already up to speed on any accounting-related tasks you can throw their way. The only “training” you’ll have to do is to send out an email or hop on a quick Skype call if you have any special requests.
- No sick-leave – You won’t have to pay the salaries for people who aren’t able to work due to illness.
- No additional software (plus no time lost to learning new upgrades and patches) – You won’t have to lose time trying to keep up with the hottest new accounting software. Your virtual accountants are conversant on pretty much any accounting software out there so you won’t be spending money training up any in-house staff… an especially huge savings if your business is big enough to require more than one person working on your finances.
- No HR required – The hiring process can be an expensive endeavour in and of itself when you factor in advertising, time lost to interviews, and as mentioned above, time lost to training. None of these costs come into play when you work with virtual accountants.
- Infrastructure – Your overseas team doesn’t require furniture, parking spaces, a bigger office, or computers that you pay for.
- Benefits – There’s a good chance that you’re going to have to make your company look sexier than your competition if you want to lure a superstar candidate into your camp. That can mean anything from health benefits to gym memberships, wine-tasting Fridays, paid meals, you name it. Again, none of these apply when you go with an overseas team.
- Government deductions – Of course, you won’t have to deal with various things like superannuation, payroll tax and worker’s comp.
- Penalties – Since you’re going to have trained professional virtual accountants keeping your books up to date you’re going to cut right down on penalties, be they from the government (e.g. late tax returns) or banks (e.g. bounced checks).
- Thumb-twiddling – Depending on your business, an in-house tax or bookkeeping team might have very little work to do throughout the year, outside of the tax season. If you hire people on full-time, then you’re potentially paying for people to do very little or no work for at least a portion of their paid hours. But with virtual accountants you’re only paying for actual effort done on your behalf.
- Money mistakes – With someone dedicated to keeping your books in tip top shape you’ll have a much clearer idea of where your business is sitting financially at all times. That means you’re much less likely to make a blunder (e.g. buying inventory you can’t afford, hiring when you can’t afford a new person, missing an expansion opportunity because you think you don’t have enough capital) that could cost your business a significant chunk of change.
