The stats say that most of the small enterprise owners waste more than 80 hours in a year only on business accounting? This involves tasks like taxation, payroll, and some other accounting obligations. It’s not easy, right? Now, imagine outsourcing all this work. Yes, that’s what you can do using a white label accounting service or an accounting outsourcing service.
What all is included under White Label Accounting Services?
Typically, all white label products and services are created by a company and then they are rebranded and put up for sale by someone else. Let’s take an example. Company A goes and buys digital marketing services from another enterprise or Company B. Now, this Company B further outsources the content of that complete package to another business called Company C, which is a white label content company. This simply means that they do not have to shell out anything on content creation. Finally, the first company or Company A decided to repackage the content, though they had not even made it in the first place.
Nowadays, white label services include various products and services, which are not being resold but are part of business operations. This could mean buying white label content for one’s business website or services such as white label accounting.
Why do you need White Label Accounting Services for your Business?
Earlier, only bigger companies were able to afford outsourcing their accounting processes. But today the scenario is different as many new Software as a Service (SaaS) platforms have come up and multiple smaller enterprises are deciding to outsource some portions of their business and then sit and enjoy the advantages that follow.
1. You can focus on your core competencies to further expand your business
It’s logical to only spend your effort where you have an expertise, isn’t it? It doesn’t make sense for you to try and manage your business’ accounting and financial tasks unless you are an expert in accounting. Outsourcing these functions will leave you with more bandwidth so that you can focus on tasks that you are good at. For example, outsourcing tasks like designing your website, content creation, accounting, etc, helps you to focus on more important tasks like expanding your business.
2. More savings
An accountant who has a couple of years of experience would earn approximately $60,000 per year on an average. If you go for a person with more expertise and experience, then the cost could go up to $80,000 per year on an average. However, considering white label accounting services could be a better idea as it’s considerably cheaper and the plans start at about $250 per month if it’s a small business.
Not only salary, going with the decision of outsourcing the accounting function also helps in saving the overhead costs like training and onboarding, hardware and software requirements, employee benefits and perks, etc.
3. Losses due to fraud can also be minimised
Smaller businesses, which have less than 100 employees, are at a big risk of fraud. Data proves that there is an average loss of 5% of gross revenues which comes to a median loss of $164,000 across small businesses.
Bringing a third party accounting service can help you gain an advantage from a neutral affiliation with the accountants. What’s more; these third-party accounting firms also have internal audit processes in place, which help in protecting their employees and also the clients.
4. Access to experienced accounting professionals
Junior accountants who are hired at low salaries bring in limited expertise with them. However, when you decide to take white label accounting services, you reap the benefits of getting a team of both experienced and junior professionals working on your account. They not only ensure that your company’s accounts payables and receivables are always up-to-date but also make sure that the payroll processing happens on time. The experienced and expert accounts professionals also help in bringing down the company’s tax burden.
5. Better and improved accounting processes
Outsourced accounting firms have updated and latest accounting processes and hence bring better efficiency on the table. This also helps in reducing the processing time as compared to when done in-house.
Accounting firms also have the advantage of working on most up-to-date accounting software, which provides the tools for improving processes such as processing payroll, tracking sales and expenditure and thus creating an enhanced cash flow system.
6. Your financial details and reports can be pulled out any time
Outsourced accounting firms generally use some cloud-based software for storing the company’s financial data. That allows you to easily see or pull out any financial report or statement you might need at any time and anywhere.
Having quick access to all the financial data such as cash balances, liquidity, etc at all times and having updated financial reports and records will help in making important business decisions, which are based on accurate and reliable data.
7. Bring in new revenue-generating services minus the overheads
The issue of the seasonality of client billings is a very big issue. However, engaging some bookkeeping services helps in creating new sources for revenue while building stronger client relationships as it’s a long-term engagement.
8. Improves client retention
If a firm provides end-to-end solutions to a client, that client is sure to stick around for long. A white label accounting firm needs to aim to be a one-stop destination for all of their clients’ accounting requirements. Then, it is sure that their clients would not leave them and go to look for another service-provider.
9. Enjoy peace of mind
May be hiring some junior accountant is a good idea from the perspective of costs; but, this cost-savings brings along some risks too.
When you outsource your accounting needs to a professional firm, you can rest assured and enjoy peace of mind because of the confidence that your company’s financial reports are being created by a team of qualified and highly-experienced accountants.
10. Provides scalability and reduces the issues related to staff
Managing a number of employees is no doubt a tough task – be it their leaves, their productivity issues or problems related to their salary etc, it is not easy to manage a company’s staff. In addition, scalability isn’t possible without adding employees. But when you work with an outsourcing firm, all this headache of human resources and its availability are alleviated by your organization.
White labeling services not only save your time and money but also relieve all your worries. You can relax at the year end and your books and reports would be in shape. Engaging with a professional white label accounting service or accounting outsourcing firm allows you to reap the benefits of expert and experienced bookkeepers and you can, in turn, provide your clients with excellent and professional services round the year, without any stress. Have queries or need some information about white label accounting services? Do get in touch with us today and we will be happy to assist you.