‘A person should not go to sleep at night until the debits equal the credits’ – Luca Pacioli
Overview Of 7 Key Benefits Of Outsourcing Accounting And Bookkeeping For Staffing Companies:
Staffing companies have their hands full matching job seekers to suitable employment opportunities. They can ill afford to devote time and resources to complex accounting and bookkeeping management for multinational clients.
One way to cut costs and free up resources to focus more on billable business functions is to outsource staffing company accounting and bookkeeping services. Thanks to the cloud, staffing companies are free to choose service providers that use the best cloud-based accounting software solutions globally.
Scalable AI-powered accounting software, such as Sage Intacct ERP, help establish your reputation as a financially reliable staffing company that always pays wages on time, regardless of where your clients are located in the world.
Discussion Of 7 Key Benefits Of Outsourcing Accounting And Bookkeeping For Staffing Companies
Outsourced bookkeeping services have many benefits for staffing companies. Seven of the most important benefits are listed below.
1) Cost Savings
Who doesn’t want to save money? Outsourcing your accounting and bookkeeping can drastically cut your expenses. First of all, you don’t need to have an accounting department or an in-house accountant, which is already a significant cost saving. You also don’t have to worry about hiring and training new staff to fill vacancies.
Other benefits include:
- No need to purchase and maintain accounting software.
- No need to maintain IT infrastructure.
- No need to employ or hire a consultant specializing in IT to fix any bugs or more serious problems related to your accounting software.
- Less office space.
- Tailored fee structure.
2) Financial Expertise and Efficiency
All financial services require specialized knowledge, otherwise you risk critical errors that not only cost you money, but could also land you in trouble when it comes to compliance with various tax laws. Outsourced accounting solutions ensure this doesn’t happen by providing access to a pool of financial professionals who are experts in the financial requirements specific to staffing companies.
Other benefits include:
- Certified accountants and bookkeepers who were always up to date with accounting regulations
- Accurate financial reporting
- Compliance with tax laws
All of which enable you to make informed financial decisions that move your business forward.
3) Scalability and Flexibility
Gone are the days when you had to buy comprehensive accounting software packages that included every function anyone could need, regardless of whether they would benefit your company. Now, you only pay for the features you need.
Cloud-based outsourcing companies offer scalability so you only pay for what you need at that time. You can add or remove features depending on whether you’re in an upswing or a temporary quiet spell.
What’s more, these flexible accounting services can be changed at short notice, so the effects are immediate.
4) Focus on Core Competencies
When staffing companies have to ensure that they stay on top of their bookkeeping and accounting, they are unable to devote all their attention to the business of courting business. Outsourcing enables staffing companies to refocus on their priorities and put business and revenue growth front and center.
Resulting benefits include:
- Talent acquisition
- Improved productivity
- Client management
- Satisfied staff who can trust in the reliability of accurate and scheduled wages.
- Increased staff confidence to assure clients that payday is always on time.
5) Reduced Risk and Enhanced Compliance
Accounting regulations and tax laws are prone to change and if you’re not a dedicated accounting company, it can be difficult to ensure your financial records are always up to date. Not only that, but you have to ensure that you’re compliant with differing regulations and laws in different states.
You needn’t worry about this when you outsource your accounting and bookkeeping. It’s the service provider’s responsibility to stay on top of changes and make alterations if necessary. They also keep an eye out for documents or notifications from the IRS and let you know immediately so you don’t face penalties.
Other benefits include:
- Maintaining current with industry standards.
- Accurate financial reporting in adherence to relevant regulations.
- Teams with people whose job it is to research and find answers to challenging questions.
- Very small chance of errors.
- Minimized risk of penalties.
- Management of any legal complications that result from non-compliance.
(Here’s a comprehensive resource on the laws and regulations that govern the staffing industry.)
6) Advanced Technology and Tools
Outsourcing firms’ reputation depends on the quality of their services. It’s essential for them to use the latest accounting software and tools to maintain their reputation for service excellence. The upshot for staffing companies is that they can be sure that they’re getting the most advanced automated processes.
Resulting benefits include:
- Real-time reporting
- Up-to-the-minute analytics on demand
- Accurate budgeting and forecasting services
- Informed financial decisions
- Insight into key metrics
(You can read this article to find out more about choosing software for your staffing company.)
7) Time Savings
Successfully carrying out certain tasks can be a nightmare if you’re not properly trained and qualified. This can be the case for some staffing companies that might not yet be in a position to employ someone with an accounting degree.
Outsourcing solves this problem because you have access to some of the brightest accounting minds. One of the benefits is that your staff won’t have to deal with irate clients who aren’t happy with their payroll situation. After all, advanced AI-powered solutions ensure that the chances of dissatisfaction are low.
As a result, your confident employees operate more efficiently with a significantly enhanced ROI.
Conclusion and Final Recommendations:
If you’re on the fence about outsourcing accounting and bookkeeping services, all you have to do is consider the cost and time savings you’ll enjoy. If you’re still on the fence, consider all of the other benefits. Increased business revenue. Improved ROI. Peace of mind that you’re always compliant with governing industry regulations.
There are myriad ways in which outsourcing can simplify and optimize your staffing company’s business processes. For each benefit listed, there are numerous knock-on benefits that really cement outsourcing’s role in your business’s growth.
For example, the money saved by not having an in-house finance department can be used to attend symposiums and conferences. You could even host your own event, like an online career fair for senior high school students.
In this way you extend your reach and develop a reputation as a forward-thinking company that supports the youth in their future planning.
That’s just one way that outsourcing accounting services contribute to your staffing company’s overarching success. Imagine how much more you could achieve if you put financial management in the hands of expert professionals with the latest technology at hand.
Efficient accounting and bookkeeping are essential for staffing companies’ financial health. When you outsource these tasks, it’s crucial to leverage robust software like Sage Intacct. With its customizable modules tailored for staffing companies, Sage Intacct seamlessly integrates with LWI’s accounting and bookkeeping services. By combining the expertise of LWI with the advanced features of Sage Intacct, staffing companies can enjoy benefits such as streamlined financial processes, improved accuracy, and real-time financial insights.