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For major companies, it is vital to have an in-house accounting department, while one-person startups and home-based businesses tend to handle their finances on their own. Still, what about those stuck in the middle? The greatest majority of businesses fall under the category of small and medium enterprises (SMEs) and it is often debated which of these two afore-mentioned business models they resemble more. With this in mind, we’ve decided to do a quick rundown of both benefits and downsides to outsourcing your SMEs’ accounting.

Expertise of Services

The first massive benefit of outsourcing your SMEs accounting lies in the expertise of services. In order to get employed in an accounting agency, an accountant needs to have a solid education and satisfactory work-history. For your company to hold such an accountant on a retainer (let alone several of them), it would cost a small fortune. Therefore, it is safe to assume that people employed by a company you would like to outsource to have a higher level of expertise than those who would work in an average SME’s accounting department.

Less Control

It goes without saying that having an in-house team gives you more control and more input into what your team is doing. For instance, you have no way of knowing if the company you’re outsourcing to takes your finances seriously enough, especially if you don’t do enough research on their portfolio before hiring them. On the other hand, having less control can sometimes be a good thing, no matter how ironic this may seem. You see, by having one less department to micro-manage, you will free up your schedule and be able to focus elsewhere.

Saving Money

Going with outsourcing is a trend that stands to save you a small fortune in the long-run. Sure, you still have to pay for people who are going to handle your finances, but you are no longer obligated to worry about their insurances, benefits or paid time-off. In other words, you get a fixed price you need to pay, which also makes your expenses much easier to calculate. In this way, outsourcing your accounting also makes the process of accounting much easier – yet another irony to your benefit. Apart from this, you also wouldn’t be obligated to invest in industry-specific, premium financial apps, that these companies use. In other words, you’re saving money on more than one front.

Security Risks

Perhaps the greatest issue that medium enterprises have with outsourcing is the fact that it involves bringing in additional people to sensitive, even confidential, projects. This is especially problematic, seeing as how your financial information often reveals much that you would prefer to keep hidden from your competitors. Nonetheless, by going with a reliable company, the one with outstanding reviews, ratings and testimonials, this risk can be minimized by quite a bit.

Distance and Language Barriers

Finally, there’s one problem, the impact of which is often misinterpreted or completely blown out of proportion. A lot of SME owners worry that their business could suffer due to the different time-zone between them and the company they outsource to, the distance between two countries or even language and cultural barriers. This, however, implies that you have to offshore your accounting and there is literally no reason for you to do so. Why would an SME owner from NSW, outsource to China or India, when there are so many local tax accountant Sydney agencies willing to offer these services? Therefore, it’s all just a matter of perspective.

At the end of the day, while it is clear that there are both benefits and downsides to the trend of outsourcing, in most cases, for SMEs, outsourcing is a better choice. While the long-term investment in your in-house department may turn out to be cost-effective in several years, temporary results in both services provided and financial savings are too significant to be underestimated. Nonetheless, no one knows your business like you do, so the choice is yours and yours alone to make.

   

Making business decisions can be extremely stressful. However, it’s an important part of running your own business and if you’ll simply have to do it. Therefore, doing everything you can in order to get better at it is a good idea. And there’s hardly a better way to do this than to follow tips that have proven to do the trick for other rookie entrepreneurs out there. Here are 4 of them you’ll definitely want to take a closer look at.
Give It Time
One of the most important things to have in mind when making business decisions is that things like […] Continue Reading…

   

As of relatively recently (the past decade or so), small businesses have proven themselves to be a modern trend that is here to stay; the unprecedented coziness of a company ran by a relatively small team of people has made the whole idea extremely lucrative for most up-and-coming entrepreneurs. Although innovation is perhaps the most treasured trait of a startup-oriented entrepreneur, small businesses are, for the most part, essentially based on improved existing business ideas. With this in mind, here are 4 startup ideas that should get you going in the right direction in the coming year of 2018.
Bike […] Continue Reading…

   

We take it for granted, but the internet has completely changed how the world works. A mere decade ago, a real online profession was a rare sight – there were ways to earn money online, but no one considered this something of a profession. Nowadays, one can not only earn money on the internet, but actually get rich, seeing as how there are vast amounts of jobs that require nothing but a functional PC. With this in mind, we present you with four awesome ways to make money online.

Writing

When the internet world started picking up pace, most experts successfully […] Continue Reading…

   

Running a food business can be awesome and fun, especially owing to the fact that these ventures are rarely a result of anything but passion and dedication. That being said, the vast majority of these tend to fail within the first year – the restaurant business market is hard to predict, even with a ton of research, planning and capital. With this in mind, it’s the perseverance that pays off here, along with business acumen and, perhaps most importantly, vision and ambition. While vision and ambition are factors beyond your control, if you have those covered, here are some […] Continue Reading…

   

When they first came into existence, a lot of the major analysts paid little to no attention to the notion of digital currencies. Still, not only did they persist year after year, but their influence grew so much that they are currently dangerously close to becoming a mainstream method of payment.

In fact, Japan already regulated Bitcoin and it is estimated that Australia is about to follow suit. Not only is this formal recognition by two economic superpowers, but it is also a clear indicator of the way in which digital currencies are reshaping our world. With this in mind, here […] Continue Reading…

   

We’ve all heard so much about people who have decided to ditch their 9-to-5 jobs and give entrepreneurship a go. If you decide to do the same, you’ll have to make sure you have absolutely everything your startup needs to succeed. While knowing your way around the books and assembling a good team is important, there are plenty of other things you’ll need in order to keep your startup afloat. We’ve singled out 5 of them you should think about investing in right now.
Website
Take a look at every successful business out there and you’ll see that each of them […] Continue Reading…

   

While environmental regulations are vital to our planet’s survival, sometimes it isn’t that simple to keep up with all the rules. This is why a small business might find itself in need of contacting an environmental consultant. But what exactly does an environmental consultant do, how does one become an environmental consultant and, most importantly, how important is environmental consulting in 2017? Let’s find out!
A Scientific Discipline
Unlike accounting, environmental consulting is not something you can learn through practice or through an online course. An environmental consultant needs a strong background in science, environmental economics, engineering, and, above all, math. […] Continue Reading…

   

Faced with irrefutable evidence of global warming and detrimental influence of human civilization on the global environment, we have to turn to the ecological frame of thinking. This is not merely a trend, it’s a necessity, and out of this necessity emerged a buzz term known as “going green.” In broad terms, it means retooling and modifying various aspects of life to fit into a more ecologically conscious way of living that has a positive influence on the environment. Many households have turned to this sort of thinking and there are a lot of companies that either follow suit […] Continue Reading…

   

Having to choose a location for your business can catch you by surprise. Many entrepreneurs are so caught up in creating business itself, defining mission, passions and goals. Choosing a home for their company is the last thing on their mind in the beginning stages. However, much sooner than later, choosing the perfect location for your business becomes a top priority to consider.
Having a Clear Picture
First and foremost, a space for your company has to be functional. Second of all, it has to, at least to an extent, communicate what sort of business you are trying to develop. The […] Continue Reading…