No matter what kind of business you are running, it's vital to keep a proper record of financial transactions. Financial reports make it clear where the money is coming from and where the money is going. It's not just the record that matters; data and reporting accuracy is a must to avoid fraud and get in trouble with federal agencies just because you have a minor mistake in your financial statements.

To keep a proper and accurate record, you maintain an in-house accounting department composed of account assistants, accounting managers, Bookkeepers, etc. You spend time and money on setting up and maintaining this department. Did you ever think that you can save your time and especially your hard-earned income quickly by outsourcing bookkeeping and accounting tasks? If not, then it's time to check this post and know how you can make up to 60 percent cost deduction from a simple transition. Let's find out how.

Cost of Hiring Professionals of In-House Account Department

An accounting department is regarded as a must to keep proper and accurate financial records of every company. You need to pay the cost of hiring people for an in-house department. This hiring will take time, energy, and resources.

A quick way to skip all the recruitment phase's cost is to hire a company that has already hired experts to perform the same job.

No more hiring is needed.

When there is no in-house account department, certainly no need to set up some space in the office for the professional. It means saving money in terms of rent you pay for space and reducing electricity bills.

Cost of Maintaining In-House Account Department

Let's suppose you have an accounting department, and you hire your employees. You will hire them full time and pay them salaries, which is not the only cost of hiring an expert accountant or bookkeeper.

You are hiring a full-time employee, so you are liable to offer him employee benefits. Here comes the additional cost of keeping an in-house account employee.

A company will pay money in salaries, taxes, health care insurance premiums, sick time, over time, vacation time, overhead, etc. So, what you need to ascertain is the actual cost of hiring an in-house accountant and bookkeeper.

Let's compare the cost of keeping a freelancer account with the overall cost of maintaining a full-time accounting department. You only pay for bookkeeping and accounting services. There is no additional cost involved in outsourcing your bookkeeping and account department. There is no need to pay for health benefits, taxes, or overheads. So, you can enjoy more than 60 percent cost advantage by relying on outsourcing services.

Cost of Training Your Employees in the Account Department

Another cost you can deduct from your annual payroll expense is training and development expenses only when outsourcing. If you stick with an in-house account department, you spend money not only for recruitment but also for new employees' training. The first month is all about training and adjustment.

Now you will have to consider another perspective, what if your company expands its horizon and wants to work on an international level. You must have to train your inhouse accountants and bookkeepers so they can keep books and reports in compliance with international rules and standards. Don't you think this training and development session would cost you more money? Of course, it will require you to send your employee for a training session- pay for the fee of this session and hire a temporary accountant or bookkeeper to handle this job. Money is what you need to spend on every step.

How to avoid all the costs of training and development?

The answer is simple. You can make a swift transition from an in-house account department to a cloud-based account department.

What are the benefits of this transition?

The first benefit is cost reduction—no need to pay for new employee training and training and development sessions during the business growth phase.

A professional outsourcing company always offers services of well-qualified and highly-skilled staff.

When you are experiencing a spike in business, and more financial reporting and bookkeeping are required, you can outsource this additional task—no need to incur costs for recruiting and training a new account manager for your in-house department. Similarly, when your business is facing downfall, no-layoff is required as you can immediately right size accounting outsourcing based on your business requirements. Therefore, making changes to your outsourcing services will always be more manageable and cost-effective than implementing your in-house department changes.

Cost of Digital Resources in the Account Department

Tons of accounting software are available out there; however, getting their subscription means paying a hefty amount of money as an annual cost. You can deduct this cost from your financial reporting quickly by hiring an outsourced accounting department, which comes with its own resources. A company that offers bookkeeping costs doesn't ask you to pay for any software- if your company needs one. The service provider will arrange it all by itself.

Wrap up

You can enjoy a 60 percent cost reduction when your business makes a transition from an in-house accounting department to an outsource bookkeeping service. This transition lets you avoid the cost of full-time employee benefits; Employee training and development; Recruitment, Digital accounting resources. The only cost you pay is the fee of getting services from a team of highly skilled account professionals. This fee is nothing with an additional cost of keeping an in-house account department.

What do you say? Are you ready to make this transition for the sake of up to 60 percent cost reduction? Feel free to book a consulting session with our experts at info@riscgroup.co