Government leaders must manage several moving parts, issues, and responsibilities at any given time in order to be successful. Accounting does not have to be one of them. Outsourcing accounting can simplify the function and ensure that leaders can spend more time devoting themselves to important government and community matters and less time worrying about their bookkeeping.
Here are five reasons why government entities should outsource their accounting function:
1.) Save Money
As with any decision, cost is a chief factor. Hiring full-time accounting employees involves steep costs associated with compensation, benefits, and more. Outsourced services are typically much less expensive and assign a fixed fee for customized project services, meaning you only pay for what you need.
2.) Keep Your Staffing Stable
The Great Resignation is affecting nearly every organization, and government entities are no different. In-house staff turnover can significantly impact the short and long-term health of your accounting function.
Outsourcing your accounting will not only save you time that would be spent seeking and onboarding qualified candidates, but it will also ensure continuity of your financial function.
3.) Improve Your Controls
Having a third party involved in managing your transactions can significantly mitigate risks associated with your financial functions.
Outsourced accountants are not only better able to make unbiased identifications of red flags associated with compliance issues or human errors than in-house accountants, but they are also able to identify and address any deficiencies in your current financial reporting.
4.) Receive Real-Time Metrics
Outsourced accounting service providers will consistently pursue optimizations and compile real-time reporting metrics to help you run your government better and more efficiently.
5.) Outsource More Financial Functions
Once you have established a trusted relationship with an accounting service provider, there are more opportunities to enhance the partnership by adding more day-to-day financial needs to your agreement. The more that you outsource, the more of your attention can be dedicated to improving the lives of your constituents.
Government entities face obstacles and important issues every day that require their time and care for the sake of a better tomorrow. Outsourcing accounting services is just one of the ways that you can ensure the health and consistency of your bookkeeping while you focus on what matters.
If you need further guidance or are interested in learning about Outsource Accounting & Finance at The Bonadio Group, please do not hesitate to reach out to our trusted experts to discuss your specific situation.
This material has been prepared for general, informational purposes only and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. Should you require any such advice, please contact us directly. The information contained herein does not create, and your review or use of the information does not constitute, an accountant-client relationship.