Benefits of Accounts Outsourcing

Henry Sack • May 11, 2022

When business owners are looking for ways to save money and improve their financial stability, they often turn to outsourcing certain services. Accounts outsourcing is one option that can provide several benefits for businesses of all sizes.

What is Accounts Outsourcing?

Accounts outsourcing (AO), sometimes referred to as Accounts Payable or Accounts Payable/Receivable Management, is a financial service that describes the process of delegating the management of your company's accounts payable department or accounts receivable department to an outside company.

BPO companies can handle accounts payable or receivable tasks more efficiently and at a lower cost than an in-house department often can.

How Outsourcing Accounting Work Can Help Companies?

Businesses confront a slew of difficulties. Accounting has evolved into a complex beast for most companies, leaving many business owners with the choice of either committing to a fully in-house accounting team, or outsourcing this function to an external team of accounting experts.

Some of the key benefits of accounts outsourcing include:

Reduction in Labour Costs

When a company outsources its accounting functions, it no longer has to pay the salaries of a full team of in-house accounting staff. This can result in significant cost savings. It's not just about maintaining your accounting, but also providing a platform to drive profits, improve cash flow, and grow your business.

Quality Assurance and Monitoring

Outsourced accounting firms are held to certain quality standards by their clients. In most cases, the outsourced accounting firm must provide monthly reports on the status of the company's accounts. By being more closely involved with their clients' finances, companies can ensure that no mistakes are missed while also having some insight into the internal controls in place at the client's office.

Improved Accuracy and Efficiency

By outsourcing its accounting operations, a company can rely on the expertise of professionals who are skilled in accounting and bookkeeping. This can lead to improved accuracy and efficiency in financial reporting.

Increased Focus on Core Business Activities

When a company outsources its accounts receivable or accounts payable roles, it can free up valuable time for employees to focus on their core competencies. This allows the business to operate more efficiently and increase profitability.

Access to Specialised Accounting Skills

Providers of outsourced accounting services tend to make use of advanced technology, like Webexpenses, that allows specialisation in different areas of Accounts Receivables or Accounts Payable. This can result in access to highly skilled professionals that companies do not have the resources to hire a team on their own.

Increased Efficiency and Better Financial Reporting

Outsourced accounting firms have dedicated staff members who are experts at Accounts Receivables management and Accounts Payable processing. As a result, a company's Accounts Receivables and Accounts Payable functions are more efficient than they would be if an in-house accountant was responsible for both the Accounts Receivables and Accounts Payable management. Accounts Receivable outsourcing also enables companies to improve their financial reporting by utilising the expertise of AO companies that specialise in Accounts Receivable management.

What Outsourced Accounting Firms Won't Do

While Accounts Outsourcing can offer many benefits, companies should understand that Accounts Outsourcing does not eliminate the need for internal controls.

Here are a few things Accounts Outsourcing is not:

Accounts Outsourcing is not a completely hands off accounting service
Accounts Outsourcing companies are usually still responsible for approving payments, however, they can process Accounts Payable runs faster and more efficiently because of their access to resources that an in-house department does not have
Accounts Payables outsourcing relieves Accounts Payables pressure from internal Accounts Payables employees, but it does not eliminate the need for Accounts Payables management
Accounts Outsourcing companies simply do not have access to all of the information that an in-house Accounts Payables department has, which prevents them from making certain business decisions based on Accounts Payables data
Outsourcing Accounting Services does not eliminate the need for internal controls

Accounts Outsourcing is Not an All-Inclusive Solution

Even if a company outsources Accounts Receivables or Accounts Payable processing, it will still have to find a way to make sure Accounts Receivables are accurate and Accounts Payables stay current. Companies can use Accounts Outsourcing as one part of their Accounts Receivables or Accounts Payable strategy, but they should still create internal controls to support outsourced operations.

Outsourcing Accounting Does Not Eliminate the Need for Some Internal Accounting Resources and Knowledge

In-house staff will not be completely relieved from internal accounting tasks. However, outsourcing to an Accounts Outsourcing company enables in-house finance team members to concentrate on higher-value activities and minimise the problems that Accounts Receivables or Accounts Payable staff can create.

In Summary

When it comes to Accounts Receivable and Accounts Payable management, outsourcing to an Accounts Outsourcing company, like TeamBlueSky can offer many benefits. Accounts Receivable outsourcing enables companies to improve their financial reporting by utilising the expertise of Accounts Receivable specialists. Accounts Payable outsourcing relieves Accounts Payables pressure from internal AP employees, but it does not eliminate the need for Accounts Payables management.

About TeamBlueSky's Accounting Outsourcing Services

TeamBlueSky is an Australian NetSuite Alliance Partner that specialises in Accounts Receivable and Accounts Payable management.

We can be responsible for Accounts Receivables management or Accounts Payable processing, as well as a wider range of back-office administration such as NetSuite administration, payroll processing and management, report writing, software implementation, customisation and more.

As a quality outsourcing provider, TeamBlueSky is well placed to handle complex accounting outsourcing requirements given our proven experience in outsourcing both in Australia and overseas.

Our success is also the result of the strength of our personal and client-focused approach. To learn more about Accounts Outsourcing, please contact us. We would be happy to answer any questions you have and help you find the best solution for your business.

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Henry Sack

General Manager

With over 12 years of experience as a NetSuite implementation consultant, Henry Sack leads TeamBlueSky’s team of NetSuite and accounting experts in his role of General Manager.

TeamBlueSky is a leading Australian NetSuite Alliance Partner whose mission is to provide critical NetSuite BPO and Payroll services to NetSuite clients who are wanting to simplify their back office processes and partner with a leading NetSuite administration expert.

TeamBlueSky have also partnered with global Suite Developer Network partners to offer local solutioning, implementation and support services for global NetSuite SuiteApps.