As companies look for ways to streamline their operations, cut costs and prepare for important events, such as acquisitions or mergers, outsourced accounting is becoming an increasingly popular option. Despite the benefits, there are some common misconceptions that might give some companies pause. Let’s set the record straight by looking at the three most prevalent myths about outsourced accounting.
Myth #1: Full-time employees will lose their jobs
One of the primary concerns about outsourcing accounting functions is the potential for job loss within the company. Rest assured, outsourced accounting is designed to supplement and support your existing team, not replace it.
The goal is to work with current employees to enhance the processes and procedures currently in place. For example, you may have the right staff without the proper training, or staff focused on the wrong work. The outsourced accounting firm can provide an objective assessment of your accounting team’s needs in the context of your company’s overall strategy and then identify how and where its expertise can be most beneficial. From there, they can train your existing team as needed and implement new systems to augment the work already being done.
Accounting teams that may have been strained by working long hours or against tight deadlines are often pleasantly surprised to find that an outsourced firm can lead to improved collaboration and more efficient work practices. This frees up their time to focus on the bigger picture, which benefits both employees and the company as a whole.
Myth #2: Outsourced accounting is a threat to security
Data security is another area of concern when it comes to outsourcing accounting functions. It’s natural to worry that allowing outsiders access to internal systems could make a company’s data more vulnerable, but in fact, the opposite is true. Any reputable firm will have established protocols in place and employ multiple layers of security to ensure that its client’s information remains secure. For clients of BPM, this includes internal control monitoring, platform testing by our IT group, and thorough documentation walkthroughs by our Risk Assurance and Advisory Services (RAAS) group.
Another advantage is that having multiple people available to check procedures at multiple levels makes you more likely to catch errors and fraud. By working with a reputable outsourced accounting firm, businesses can actually improve the security of their financial information, rather than put it at risk.
Myth #3: Outsourced accounting is too expensive
Finally, many people are under the impression that outsourced accounting is prohibitively expensive. While it’s true that outsourcing comes with costs, they often compare favorably to the expense of hiring all the full-time employees that you would need for the same work.
Outsourced accounting firms like BPM can provide a wealth of knowledge and expertise that might not be available in-house. They can help streamline processes, identify inefficiencies and implement best practices that can save a company both time and money in the long run. Moreover, by outsourcing certain accounting functions, businesses can free up valuable resources and allow employees to focus on other core aspects of their operations. This can lead to improved overall performance and more timely information for better decision making.
Is outsourced accounting right for you?
By understanding the realities behind these common misconceptions, businesses can make more informed choices about whether outsourcing their accounting functions is the right move for them. With a firm like BPM, companies can expect a collaborative approach that works with their existing team, enhances their current processes and prioritizes data security.
Contact us to discuss your accounting service needs and visit our interactive guide to discover additional ways you can leverage outsourced and managed services from BPM to help your business realize its future vision.