On the Fence:
Accounting Services –
To Take or Not To Take
Some benefits and potential risks of
accounting services that may benefit those
who are at the fence or have already
decided whether or not to go for accounting
Business outsourcing is the
The trend is raging,
catching up with small
scale business ventures
Whatever be your business
need, a third person is
What’s surprising is the
high demand, especially for
outsourcing of accounting,
HR and legal functions.
A definitive answer to these
questions isn’t possible because it
all depends on the kind of service
provider, the relationship with the
client, contractual issues and
What we tackle here are some benefits and
potential risks of accounting services that
may benefit those who are at the fence or
have already decided whether or not to go
for accounting services.
Most often, companies need some form of
accounting aid, especially if they are
startups or small scale enterprises.
O That’s because devoting their entire
machinery (they have a small workforce and
few resources to start with) to matters such as
accounts is not an option.
O And neither can they set up or maintain a
separate division for accounting.
O Therefore, outsourcing their accounting
services gives them one less non-core
internal function to worry about.
1. Going light on the pocket
O By outsourcing all or some
companies surprisingly save
up on costs.
O They save on manpower
infrastructure such as office
space, hardware, and
services from other
the need to train or
What’s more, the expertise and
knowledge of financial
professionals helps you find tax
deductions, avoid late fees and
other such financial liabilities that
could have been missed by you or
your in-house staff.
2. Chipping off more time
O Taking accounting services helps you and
your staff save up on time.
O Rather than spending hours managing books,
you’ll have more time to focus on the strategic
goals of the business.
O Moreover, you will also escape other tasks
such as hiring, recruiting and overseeing the
work of the accounts staff.
3. More staffing control
O In the case of small businesses, one
worker may double up as an accountant
and an executive or a customer support
officer or what not!
O Sometimes, businesses need more
workers and sometimes they need to lay
By outsourcing business functions,
you will have more control over your
as you only use the services as and when
without worrying about hiring and maintaining
4. Higher competency and
O There’s no doubt that third party service
providers have more competency and
expertise in the work they do.
O Moreover, to keep up with the competition,
they update their skills constantly.
O That implies that by taking their services, you
are bound to get good quality work and better
expertise than what you could expect from
your in-house personnel.
5. Minimizing downtime and
maximizing business growth
O Taking accounting services for auditing
and bookkeeping helps in avoiding
O Letting professionals handle these tasks
ensures that business owners have more
resources at hand to work on the core
functions and growth of the business.
The financial and confidential nature of
company accounts make it only logical to
assume that sharing such information is
O And for sure it is.
O However, making
smart choices with
regard to service
ensures you are
insulated from risks.
1. Trust and security issues
O By taking accounting services, you are
required to share insider information on
valuable aspects of your finances.
O This kind of data is sensitive.
O Even if the service provider is trustworthy,
other parties may sometimes be inclined
to hack into such data.
2. Lesser managerial control
O Outsourcing accounting functions to other
service providers and contractors gives
you lesser control over those aspects of
O Moreover, as the services are provided by
other personnel outside the company,
there is lesser managerial control over
3. Increased dependence on
O Another disadvantage of taking
accounting services is that after a point
of time, you may become so dependent
on third parties that it may be difficult to
withdraw later on.
The Ultimate Question –
To Take or Not To Take
Taking accounting services
has both pros and cons.
O While the
outweigh the risks,
it is always a good
idea to be careful.
O Choose the firm
wisely and make
sure the contractual
are clear to you.
Because of the sensitivity of financial data, such
service providers have sufficient security protocols in
place and hijacking by other parties may not be much
of a risk.
With the right approach,
outsourcing could spell
tremendous growth for