Outsourcing a non-core competency services such as accounting has become an increasingly common trend for today’s businesses. Virtual accounting is the newest model to traditional outsourced methods which is more cost effective and efficient driven by online technology.
Technology made working with a virtual accountant extremely easy and below is an excerpt from an article that explains how virtual accounting is helping companies nowadays.
The Challenges of Typical Staffing Solutions
As revenues fall, a business must cut expenses in order to maintain profit. When workflow decreases, many companies have no other choice but to reduce staff to accommodate the reduced workload. And when business picks up again, new employees have to be hired and trained. The business is slow to respond to a changing market and that can be a critical shortcoming if a competitor can respond to increased business more quickly.
An alternative is to keep the same number of employees but find other ways to reduce costs. Eliminating raises, reducing benefits, or implementing work furloughs keeps a workforce ready for a sudden increase in business that accompanies economic recovery. The downside is that employee morale is likely to drop and some workers may leave for positions with more hours or better benefits.
How a Virtual Accounting Department Adjusts to Your Staffing Needs
A growing number of businesses are dealing with the problem by outsourcing services such as IT, personnel or accounting to outside services. The benefit is that the company can reduce or increase services to accommodate current needs. Because the service provider has multiple clients they can absorb fluctuations in work flow more easily.
Businesses using virtual accounting departments maintain full control over their finances but have the benefit of getting only the accounting work they need, no more and no less. They react to market conditions more quickly and have an edge over rivals who use traditional staffing methods.
A virtual accounting department can integrate with a company’s own accounting department to create a blended solution. A business that sees a sudden increase in need for accounting services can supplement with outsourced accounting services. Businesses that do this often find the advantages of using outside accounting so great they never bother growing their internal accounting capabilities.
Maintain Accounting Competence
Another benefit to using a virtual accounting department is there is no training delay when the company’s accounting needs to expand. Internal accounting solutions require hiring new bookkeepers and accountants to meet the company’s needs then taking time to train them on company accounting procedures.
An outside accounting firm handles their own staffing and training. Their ability to adjust the workload among a large staff means they have experienced people available who can take on your increased accounting needs immediately. When they do bring on new employees they have the financial expertise to get the hires up to speed quickly.
The versatility of a virtual accounting department is a powerful asset in today’s rapidly changing economy and becoming the accounting solution of choice for modern businesses.