Business Analytics – Today’s Business Requirement Could Be Served with Efficient Accounting Processes
Nontechnical and business analytics skills were once ‘nice to have’ for finance and accounting jobs. Today, they are requisites for many businesses. The increasing demand has created recruiting and retaining such knowledgeable personnel challenges for employers.
Building a team that capitalizes on Big Data promises has companies struggling to fill accounting and finance gaps, primarily data-driven initiatives. Business intelligence proliferation creates a need and expectation for finance and accounting teams to do more than report on numbers.
Now, they must turn financial data into actionable recommendations and insight for company decision-makers. Employers face talent gaps in the following areas.
• Identifying data trends
• Mining and extracting data
• Technological acumen
• Data analysis and statistical analysis
Today’s finance and accounting professionals serve as business partners who use data analytics to offer companies strategic recommendations. They have to be problem solvers and adaptable to change. Small and midsize companies consider outsourcing some, if not all, of the transactional bookkeeping and accounting tasks such as financial statement preparation, tax filings, payroll, accounts receivable, and accounts payable. Concerns are
• Change in the financial accounting process
• Cost implication
• Loss of control
• Managing employees versus managing vendors
Addressing the Concerns
The most significant concern to any company or its employees is change, particularly if the change relates to reporting and management of income and finance. It can be managed and planned for or forced upon by external situations.
Implementing outsource accounting solutions is a change that is manageable and can be applied proactively. Outsourced accounting service providers offer a company the opportunity to improve and upgrade the current financial accounting system.
As a result, internal efficiencies improve. The business is secure in the knowledge a comprehensive, scalable accounting solution is implemented and positioned for long-term growth. Outsourcing back-office operations like accounts receivable, accounts payable, and other bookkeeping functions put more control into the owner’s hands.
He or she no longer does data entry or manages bookkeepers, but focuses on critical tasks such as operations, customer service, marketing, and sales. These core functions are central to an organization’s success.
Freeing up valuable time and access to timely accurate financial information are crucial factors that help owners manage and understand their business efficiently and intelligently, resulting in more control of their companies.
The hiring and retaining cost analysis for bookkeepers goes beyond crunching numbers for an hourly rate. At an hourly rate of $15 per hour, the bookkeeper’s monthly salary is $2600 per month. That figure does not include $350 for health insurance, $200 for paid vacation, $260 for workers compensation and payroll taxes, $520 overhead costs for supplies, computers, office space usage, etc., and $52 for retirement benefits each month.
The amount of time spent managing and monitoring a bookkeeper and hiring a CPA to prevent embezzlement, fraud, and correct errors drive the cost of retaining a bookkeeper. Placing a $100 per hour value on an owner’s time means an additional $1300 per month.
The accrued cost of hiring an in-house bookkeeper is $64,584 per year. That figure is double the annual salary. Besides the costs mentioned above, managing employees presents additional challenges. They include spending extra time to hire and train personnel replacements due to employee turnover, management due to internal conflicts, and the risk of embezzlement and fraud.
Finding a Provider
Finding suitable cloud accounting service providers USA is crucial to outsourcing success. You want accounting service providers such as KMK Ventures, who have an excellent reputation, are capable of timely processing work and have a system for processing the work and communicating the work’s status. When virtual account services are in place, the process is seamless for remote accounting services in USA, employers, employees, and clients.
Outsourcing accounting solutions in USA for back-office operations, such as bookkeeping, payroll, accounts receivable, and accounts payable, will evolve and become routine for businesses. The benefits of outsourced accounting solutions include minimized risk of embezzlement and fraud, improved financial reporting, elimination of workflow gaps due to employee turnover, reduced cost, and improved efficiency. All the benefits position a company for future growth. Choose an outsourcing accounting firm USA like KMK Ventures.