Why is accounting outsourcing becoming more popular for SMBs?

Once upon a time, a company would hire an in-house bookkeeper or accountant to take care of the books. But today's world has seen a strong shift towards new business models and alternative ways of getting work done. Outsourcing work to companies that provide specific services has become more common, including accounting services. Here's a look at why.

The internet has brought our world closer together. Companies are now specializing in areas that did not even exist a decade ago. With the ability to specialize, many companies have decided to focus directly on their company while outsourcing back-office departments to other companies that specialize in that particular area. Accounting is one of the departments that has seen strong outsourcing in the past few years.

In the past, accounting required paying for an accounting software package and then hiring or training employees to operate that software. Updates were initially handled by ordering a new disk, then downloading the new version. Someone in the office would be responsible for making sure these updates were handled in a timely manner. The employees would need to receive training on the changes. Today's digitized society has been changing to a new way of handling accounting software.

Software-as-a-service (SaaS) is a term used for software that is hosted on a different computer and accessed through the internet. Because it isn't installed on th

e computer being used to access it, the software provider handles any updates and training. The cost of the software is spread across a greater number of companies and is available on a subscription basis, lowering the cost of acquisition. This makes it easier than ever for businesses to quickly record transactions for an off-site outsourced accounting professional to manage. Instead of hiring a dedicated accountant, one accountant may handle several companies' books. This lowers the business' cost of acquisition for the services they need, as the accountant's expenses are spread across several companies.

Outsourcing accounting services help small and medium businesses focus on what they do best - run their company. Instead of being caught up in confusing paperwork, wouldn't your time be better spent doing what you know? AccountRely provides exceptional accounting services for businesses. Contact us today and find out what a personal relationship with your accounting professional can do for your business.