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Why good accounting practices matter in business

June 15: Businesses have limited resources whether in terms of finance, time or labor. Best practices of accounting address the issues of resource wastage by providing cost-effective strategies to allocate our resources wisely. These best practices can be brought around by outsourcing accounting.

There are two cases where outsourced accounting emerges as a reasonable way out. First, when a company expands, so do its financial obligations. At this point, its accounting processes become complex and time-consuming. Second in the case of small businesses, where start-ups and entrepreneurs cannot afford the in-house services of an accountant. It especially becomes difficult for them to find someone skilled enough to compile financial statements, handle bank account operations, evaluate financial data, etc.

Consequently, in both the cases it becomes difficult for entrepreneurs to decide whether in-house solutions will be feasible for the company or outsourced. It is very normal to analyse if the inside staff is capable of carrying out the accounting process without leading to fraud or data mishandling. If not, then the ideal way out is to outsource accounting. Thus, relieving oneself of its burden. This is not only cost-effective but yields qualitative results as well.

Benefits of outsourced accounting

The chief benefit of outsourcing in any field is the ‘benefit of expertise and updated knowledge and technology’. In reality, the out-of-pocket expense of outsourcing is frequently little when weighed against the benefits it provides.

Previously, it was considered a luxury that only large firms could afford. But today, most small-scale enterprises find their comfort in outsourcing. Cost-effectiveness remains the primary reason for these companies to outsource administrative duties like bookkeeping and accounting. It saves money by reducing the hefty in-house accounting expenditure and the cost associated with the hiring process.

It adds intrinsic value to business owners that goes beyond debits and credits by:

• Improving focus on scaling business
• Providing a team of skilled knowledgeable professionals who can be relied upon
• Reducing lags and frauds
• Real-time reports for early detection of errors

●     Assessing and recommending growth strategies

• Enhancing data security
• Timely paying to the staff
• Allowing staffing flexibility
• Increasing confidence in figures for decision-making
• Handling of compliance and financial audits
• Preparing financial statements and reports with a breakdown and analysis of the company’s financial health

Outsourcing parts or all of your accounts and finance department is becoming increasingly popular. It has become a popular choice for businesses willing to expand quickly, manage employee absenteeism, or procure specific expertise. Over the years outsourced accounting’s value and outcomes have consistently turned out beneficial for businesses.

‘Behind every good business is a great accountant’

That is what Corient has in mind while delivering its outsourced accounting services. It provides bookkeeping, accounting, payroll, back-office, management reporting, tax preparation and administration and year-end accounting services by employing the best processes, consultation and technology. It offers tailored solutions by first comprehending its clients’ concerns and then coming up with the solutions tailored according to those concerns. As a service provider, the organization has helped its clients in diverse ways.

It caters its services across the spectrum to small and medium enterprises/ professional companies across the globe by building robust, integrated and efficient systems for them. It has a structured team that takes control of books from day 1 and acts as finance director rather than just a bookkeeper. Its prime focus is on getting the firms a competitive edge in the market. By using best practices and being aware of common workflows it better assesses the needs of its clients.

Its services have satisfied customers from different backgrounds. Some examples of its successful accounting intervention to quote are: Its efficient back-office handling enabled a Temp Staffing agency to grow by 63% in just 12 months; Corient helped a photography firm raise its income by 2.85 times in three years; Similarly, it allowed a property management business to boost property under control by 62% that continues to grow. It has helped these organisations achieve success using its pace model which includes process management, excellence through key performance indicators, automation, consulting and advisory.

Corient designs solutions to help businesses cope with the ever-changing market. They tend to support by providing skilled resources, developing the right technology, and guiding the businesses to make better decisions.​ Other than timely management of accounts, cash flows, real-time accounting and month-end management reporting, it also offers value-added services such as cash flow forecasts. It takes accounting seriously to help the organisations achieve growth in terms of revenue, profitability, better processes, better work-life balance, etc. as it believes

‘Creativity is great but not in accounting’

Also, as a result of remote employment, cybercrime has proliferated into business operations. To resolve this it proactively looks into different methods to fix these concerns, especially with the privately owned small businesses. It undertakes multi-level security measures to secure its clients’ data. Some measures that it undertakes are restricted authority to data access, controlled data transfers to external sources, blocking removable storage devices on workstations, operating 24*7 under CCTV, etc.

It provides additional services like

●     Amoeba App-Scanning where firms can have their firm app so that clients scan and upload documents at ease

●     Timesheet App to help temp staffing clients automate timesheet processing and integrate invoicing and payable with accounting software of their choice

●     Logistics Portal to help logistics clients track whereabouts of their lorries, pick up and drops and integrates invoicing and payable with accounting software of their choice

●     Task manager app to help track tasks and communicate internally among the team members

Conclusion

While almost every firm must keep a close eye on its assets, liabilities, revenue, and cash flow, accounting processes are especially important for small to mid-sized organisations as they expand. The ability to manage a company’s finances is critical to its success. A wiser step toward smarter financial management is through outsourced accounting which allows for a well-developed, well-implemented and well-carried out accounting strategy. Understanding the data, recognising changes and fields that want attention and aiding in selecting what an organisation should do next brings outsourced accounting to a whole new level of usefulness. This is what is called a wise investment of resources which gives you the competitive edge you want.

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