Benefits of outsourcing accounting services for small businesses in South Africa.

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accounting services for small business

Outsourcing accounting services for small businesses in South Africa can have several benefits, including:

  • Access to the expertise of seasoned professionals
  • Avoiding the issues and expenses associated with hiring new workers
  • Saving time and resources that can be used to focus on core business activities
  • Improved quality of service within deadlines
  • Cost savings due to reduced overhead costs such as salaries, benefits, and office space

The debate of outsourcing accounting services versus growing in-house accounting departments shows up time and time again and for good reason. 

With many South Africans leaving their 9-5’s to start small businesses, the challenge to up-scale remains costly. 

Here are a few reasons why hiring an outsourced accounting firm can be more advantageous than hiring an in-house chartered accountant:

Professional accounting service from the get-go.

When making the decision of outsourcing accounting services, the primary benefit one receives will be the professional team of accounts immediately. 

You do not need to hire additional staff and build systems of records from the ground up. Outsourced chartered accountants use the latest accounting software and cloud services, to generate problem-solving ideas easily.

With strict processes and a desire to maintain a good reputation, all financial statements are checked thoroughly by senior accountants thus making discrepancies non-existent. 

Some of the services offered by outsourced accounts include book-keeping, billing, consulting and independent audits, taxation, payroll and auditing services.

Their expertise and connections also enable them to niche markets and skilled private individuals.

This adds to the quality output of reports and if their sources are offshore you gain an extra advantage without the hassle.

By maintaining a good repertoire you afford yourself the prospective to explore new markets.

No additional staff is required.

An enterprise’s finances are made simpler when outsourcing accounting services, but that is not the only advantage.

When up-scaling your business, the choice to have an in-house accounting department may seem the most natural, however, the process itself demands certain tasks to be carried out that take away from the essential functions which do grow the business. 

Outsourcing your accounting will guarantee that you will get expert chartered accountants, who have been trained and exposed to the latest technology and trends. 

Burnout rates amongst accounting departments, due to lack of stimulation and expecting the same work all year round, are common reasons businesses lack the motives to retain existing employees, such is not the case when outsourcing accounting services to dedicated firms. 

The burnout rate of chartered accountants is thus lower in outsourced accounting firms knowing that the firms hire adequate staff and avoid overworking their employees by distributing portfolios amongst the teams. 

Overall, with retainer fees being cheaper than chartered accounting department salaries, small businesses gain an edge with overall revenue increasing while maintaining a steady cash flow.

Reliable advice.

The decisions that come from outsourced accounting firms can offer insights from years of experience and records that no department or individual can match. 

Small enterprises benefit from decreasing costs and having less time to break-in to the market but most importantly, having accurate reporting and sound financial advice readily available. 

Outsourcing accounting services provide such expertise that leads to increased trust and demand, with the predicted overall worldwide business process outsourcing market to rise above US$ 343 billion before 2026 according to trends from The Source

Additionally, for financial consulting and further upgrades in service, these outsourced accountants or business accopuntants can be relied on all around the clock and more so for general customer service queries. 

One long-term benefit and a major difference is the fact that outsourcing your accounting needs means you need not worry about raises for an entire department. 

Reducing costs while maintaining quality.

Gaining more flexibility and time on more important tasks whilst saving costs, can be expected when outsourcing accounting services.

The review of your financial statements, which is done by senior chartered accountants, is set to your schedule whether it be monthly or on a quarterly basis.

On top of that, if the accounting firm provides taxation and payroll services then you have a firm that you can rely on for all your financial needs. 

Bookkeeping for small businesses by employees, no matter the prior enterprise finance experience of owners, needs to adhere to stipulated financial regulations. 

Without a knowledgeable lead, employees run the risk of breaking the legislation and tax compliances which add to a list of problems to be alleviated, and by outsourcing accounting services you can guarantee this task is never overlooked. 

Outsourced accounts, with their primary operation being lean accounting, have the technical know-how and are fully versed with the regulations and thus proactively avoid non-compliance penalties. 

You also have the ease of mind knowing that your time can be spent bringing in more customers while accounts receivable and financial statements can be expected on time.

Backed by initiatives and well motivated.

What motivates them is knowing very well the referral potential for prospective clients; thus outsourced accounting firms, with top-of-the-range charted accountants, maintain their esteem by working to meet expectations and often going above and beyond. 

With additional support from government initiatives that are expected to increase within the decade, all this at an affordable price makes outsourcing the more attractive option.

Is outsourcing accounting services for small businesses a better choice?

The credibility of outsourcing accounting services cannot be denied and for good reason. 

With outsourced accounting firms ready to meet expectations, a guarantee not home to in-house departments, their advice backed by their financial transparency is nothing short of professional and expected to deliver results. 

The flexibility of being able to work on the processes which effectively grow your core business may indeed position you above other competing small businesses.

Once again your business is safeguarded from fraud and other discrepancies since the constant review processes and adherence to policies make it harder to go without notice.

Globally markets reduce their overhead costs by outsourcing their accounting functions, leaving the details to professionals in the field.

Information about the authors, publication, and publisher

Picture of Author - Arnaud Brunel

Author - Arnaud Brunel

After a 15 year long career in International Banking and Compliance, Arnaud launched multiple businesses in Cape town. He still heads 2 of these businesses today in the Digital Marketing Industry with Brunel Studios and in the Financial Industry with Thryv.

Picture of Publication & Publisher - Thryv Accountants

Publication & Publisher - Thryv Accountants

Thryv accountants is a private accounting company that focuses on outsourcing of the financial functions of small and medium companies in Cape Town and other regions of South Africa.

The publications on this website are for information purposes only. They are based on our professional opinion.

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