How can outsourced bookkeeping services help my IT Company?
How can outsourced bookkeeping services help my IT Company?
Whether a product-based company or engaged in the provision of services, accounting and bookkeeping will always remain integral to your business.
As an IT company, your primary objective is to help businesses with technology-based solutions and automated processes by delivering precisely curated software or applications.
Being an IT company, you leave no stone unturned when providing the best quality services to your clients. However, the existence of failed codes, errors at the back-end development, and managing and fixing the bugs in the clients’ software are part of the technological development lifecycle. Similarly, quite a few things are happening in your finance and accounting department daily. Many IT companies think that because they are into service (where they do not have to worry about production, distribution, or inventory management), they do not require any accounting and bookkeeping function for their business to run effectively and efficiently. They believe only product-based companies need these functions to manage various activities impacting their cash inflows and outflows.
However, it is not valid. Bookkeeping and accounting are essential to service business organizations, including managed service providers, whether about Information Technology or consulting. Every enterprise’s day-to-day financial transactions are to be recorded on a timely basis, and financial results must be known for each business segment. Additionally, managing the payroll, reporting expenses & incomes, bill payments and invoices collection, monitoring cash flow movements, etc. are the everyday activities that need to be managed effectively, and no one other than a bookkeeper can fulfill this job most efficiently. But yes, please note that there would be a difference in the scope of bookkeeping services and accounting services for a company and that of a product-based company, wherein the scope for later would be broad.
A service company, like an IT company engaged in the development and supply of software, may not hire an in-house bookkeeper, as the volume of transactions would not be much, and the complexities involved would be on the lower side. Instead, you can outsource the bookkeeping function to an experienced professional third-party bookkeeping service provider.
This article briefly discusses the benefits an IT company can pursue by outsourcing the bookkeeping function. Let us see what these advantages are.
Benefits of leveraging the expertise of outsourced bookkeeping functions
- Supports you with a dedicated team
When you outsource your company’s bookkeeping and accounting functions to a third party, you will understand that appreciate that the third-party consulting firm is a team of highly cultured and knowledgeable professionals. The firm would provide a dedicated team of experts for your bookkeeping and accounting functions. This team would be helping you complete your payroll activities on time, tracking the balances due or payable concerning your expenses and receivables, preparing your company’s financial statement with utmost accuracy and detailing, etc.
These outsourced firms carry a lot of expertise and experience, as they have been in this outsourcing business for years and have worked with many clients from different industries, backgrounds, requirements, and end goals. The dedicated team of the outsourced bookkeeping firms would be ready to walk an extra mile to help you, irrespective of your agreed scope.
- Maintains accurate accounts and gives you access whenever you require
As an owner of an IT company, our ultimate goal is to deliver the best technology solutions and software to your clients. Suppose you have to get involved in routine activities of recording the financial transactions or overview the work of an in-house bookkeeper carrying out these tasks for you. In that case, you may be unable to focus on your core business. It may ultimately impact your delivery of the solutions/software to the clients, which might have unfixed errors or bugs.
Accordingly, having your bookkeeping and accounting requirements outsourced to a professional firm would free you from these burdensome tasks. Further, with outsourcing, you can have your financial documents and statements prepared on a timely basis, with accuracy and completeness, without investing your precious time into these jobs.
With outsourced bookkeeping/accounting functions, you would not have to wait for your time to get free from core work and finalize the financial statements; instead, you can demand insights about the present financial position of your IT company at any given time.
- Allows stress-free focus on core business while maintaining the data security
As mentioned above, being an expert on technology and digital solutions, bookkeeping can bring you a lot of stress as you may not have the knowledge or sufficient experience to handle the books of accounts. It may mess up the financial results, showing an incorrect and incomplete position.
Rather than managing everything single-handedly, partnering with field experts who can carry out the tasks excellently is also good. This way, you can relieve your stress of unknown work and dedicate your brain and time to functions you are proficient at.
Further, in the current competitive environment, third-party outsourcing firms are using the best systems and most advanced software to perform bookkeeping and accounting activities on behalf of their clients. The use of digital solutions ensures minimal manual intervention and maximum data security. It keeps business-critical information confidential and secure from malware attacks or manual attacks.
Thus, with outsourcing comes peace of mind (no need to worry about the bookkeeping and concentrate on core business activities) while maintaining the security of your company’s financial transactions.
- Timely clearance of your employees’ salaries
As discussed above, you alone cannot manage things, specifically when these activities are not your forte of knowledge. Generally, it has been seen that the companies trying to work things all by themselves end up making payments to the employees after 7 to 10 days from completing the month of their services. It may create frustration in the employees, sometimes.
Thus, when you have left things in the hands of the professionals, they would manage your payroll processes, and your employees would be paid on time. There would not be any complaints from your employees about the delayed salary your company. Using digital solutions over human efforts in the business makes payroll management extremely easy. Most importantly, the entire process is automated; hence, it takes much less time. Furthermore, it also eliminates the scope or probability of human error in calculating the taxable income, amounts to be deducted on account of leaves, and the additional payable amount on account of overtime or any tax deductions.
Also, when you have employees (part-time or freelancers) who follow a different payment cycle, like every week, fortnightly, or at any particular date of the month, it becomes effortlessly easy to track and manage such timeliness with the help of third-party professionals working this with their tech-driven solutions.
Final Words
All the points mentioned above are the advantages you will get as an IT company when you outsource your company’s bookkeeping and accounting functions. Now, the question arises of how to find the best company whom you can rely upon for these tasks.
You must select a company with an established history of working with clients from different industries and the varied nature of businesses. Not just this, the company you choose must have a strong team of human resources and have deployed the latest technology software and applications. This outsourcing firm should stay updated with the latest trends and movements in the market.
If you are also confused about finding such a company, let us help you. CFO UAE is a consulting services firm you can trust with your bookkeeping and accounting jobs, where you will be delivered with the expected outcome with efficiency, accuracy, and before time.
