Let us understand the responsibilities of this department in brief
Accounts Payable: - In order to maintain great relationships with vendors and making sure that everyone gets paid on time is a vital role. The role of the accounting department includes keeping an eye on opportunities to save money.
Accounts Receivable:- Another important job of the accounting department is to account for and track receivables, including outstanding invoices and any required collection actions. Accounts receivable is responsible for creating and tracking invoices.
Payroll:- Payroll is another crucial function of the accounting department and includes making sure all employees are paid accurately and timely. In addition, proper tax is assessed and tax payments are on time with state and federal government agencies.
Reporting and Financial Statements:- The primary focus to collect data properly in your accounting software is to prepare financial statements that can be used for budgeting, forecasting and other decision making processes. In addition, these and other reports are needed for communication to investors, banks and other professionals that play a role in the growth of your business.
Financial Control:- Financial control include reconciliations, dividing the responsibilities and following the standards of accounting principles, all of which are implemented with view toward compliance, fraud and theft prevention.
These are just some of the main roles and functions of the accounting department in businesses, there are many more responsibilities the accounting department is responsible for and a number of subcategories.
While the specific roles may vary from business to business, one thing is certain: if your accounting department does not perform these key functions effectively and efficiently, you could be headed for some serious (and not so pleasant) surprises. Why outsource the Accounting Services?
As companies look to leverage the power of their data, they are turning to outsourcers with greater expertise and technology resources than they have in-house. Be it a new or well settled business, you could consider outsourcing accounting services so that you don't have to handle this tedious task on your own. Your accounts should be well maintained so that your business runs efficiently. But, there are several pros and cons associated with outsourcing your accounting services and you must be aware of these so that you make the right decision. Few of them are listed below.
- Outsourcing accounting services to the professionals ensures you do not need to employ and pay people to work for you on a full time basis as part of your finance department. This can prove cost effective.
- Professionals will record, maintain accounts for your business, and they will deliver your work within a short span of time.
- Professionals hire trained people to work on tasks for you so that you're offered quality work on time ensuring you are left with plenty of time to attend to other business related tasks.
- Professionals cover all areas of accounting for you, even the one you haven't listed on the contract.