The three alluring baits of outsourcing anything are:
- You benefit from a deep pool of skill, resources and expertise of the field
- You save a substantial amount of money from not having to pay overhead costs and operating a team
- It frees up your time to focus on your core business functions
As has been repeated countless times, the accounting function of a real estate firm is quite tied up into the main working of the company. You can’t separate the two very distinctly. Accounting serves to provide great insight into the company’s financial landscape. However, there are plenty of quotidian ho-hum tasks that could very well be passed off to an accounting service instead of letting it eat up into the valuable time of your accounting team. Furthermore, there may be bigger tasks, too, that could use the expertise of a vetted accounting service. When to outsource your real estate bookkeeping can be answered by the same reasons as to why you outsource it. If you delegate wisely, here are some ways it actually improves the health of your company.
- You are handing over the dirty work to a person/company that specialises in just this field. They bring to the table the right skills, experience, expertise, and most importantly, accountability (because you own the pleasure of letting them do the worrying about keeping your accounts up to date). Surely you can only benefit from it. The best part is that you still maintain overseer position because you continue to have access to all the accounting data online, you are entitled to demand of them what you need, and have the full right to expect it being done.
- The accounting service conducts an Accounts & Business Process Review before they take on your accounting. This specific program helps identify the processes to be outsourced, and develops a roadmap to outsource front-office finance functions. This helps your company outsource non-core functions for qualitative and timely services, and even helps automate a lot of the processes involved.
- The service comes with a treasure-trunk of experience. Which means tangles which seem like accounting mammoths to you have, in all probability, already been handled by the service before and can be done quickly and without much experimentation. So you benefit from better risk-management.
- The real estate business tends to be a bit of a rollercoaster – peaks sometimes and dips otherwise. Outsourcing the accounting function means you can enlist a special skill set when you require it and withdraw it when you don’t need it any further. The accounting firm is well equipped with a ready denizen of skilled accountants to deal with fluxes in work heft.
- When you aren’t operating your own accounting team you save substantially on reduced costs from maintaining accounting personnel, from investing in expensive software and other infrastructure, and generally managing an entire team. Even for companies who outsource only part of the accounting, they still benefit for the same reasons.
- It frees up time for you to attract A-list clients. If you think you’re happy with where you are, in a few years you could end up lagging behind. When you have the time, you can focus on new and bettered clientele. That would mean you need to show you can offer quality services, accommodate their requirements and suggestions, and meet much more than the minimum requirement. By outsourcing, you increase your own productivity, you will be forced to consider new and improved ways of functioning and will actually have the time to seriously do it, and the overall morale would be higher when your team can see good results coming of their hard work. And remember, you’re A-listers have friends and colleagues!
Just remember, if you can’t measure it you can’t manage it. If you can’t manage it, you’re in trouble. So take the step to help yourself. And if you are worried about how it will work and how safe it is, read on to assuage your fears of outsourced accounting.