When many business leaders think of maximizing ROI, they immediately think of reducing client acquisition costs and tightening spending controls. While these strategies are wise starting points, most businesses do not immediately consider outsourced accounting services as a way to get there. But, that is changing.
Three Ways Off-site Accounting Services Improve ROI
As more business leaders embrace off-site accounting services as a financial strategy to maximize ROI, the list of benefits of outsourcing continues to grow. Three ways a remote accounting team may help a company improve profit margins are:
Analyzing Sales Department Performance
Traditional cost accounting methods are time-consuming, especially when they are based on multiple spreadsheets or paper-based records. Using automation and back office data to compare individual sales person's cost of client acquisition and unit economics to create the true cost of product or service delivery gives business leaders valuable insights into who is generating the highest profit margin for the organization.
As an example, the salesperson producing the highest sales volume may be offering deeper discounts to key clients, resulting in a higher commission while lower profit margins overall.
Identifying High-Profit Clients
Identifying high-profit clients is critical for companies who want to maximize ROI. Outsourced accounting firms provide data that shows you which clients value your products and services. These clients consistently pay their bills on time, renew contracts and contribute to year-round positive cash flow.
Letting go of slow-paying clients that could mean your team struggles to meet external financial obligations, is a wise decision. One that improves ROI significantly because you reduce or eliminate late fees, poor financing terms, and unnecessary spending on collections and payroll.
Correcting Back Office Inefficiencies
An ideal accounting department maintains accurate, timely records companies use to create budgets, generate reasonable project forecasting models and provide pricing guidance to maintain a competitive advantage. Unfortunately, paper-based systems are subject to human error and require a large staff to maintain. Due to inefficiencies in the accounting department, financial research suggests companies lose between 20% to 30% of their profits every year.
Intelligent automation, like systems that fall in line with AccountingDepartment.com, provides and informs workplace efficiency standards. Armed with real-time data organized to show how long it takes for staff to perform each task empowers companies to invoice clients faster, improve accuracy and boost profit potential through cost and time savings throughout the organization.
Outsourced Accounting Services Designed to Maximize ROI
Outsourced accounting services rely on state-of-the-art technology and fully integrated systems to deliver accurate, reliable, actionable insights. Whether a company is looking for ways to improve sales team performance, internal workflow, competitive advantage, or customer satisfaction, outsourcing accounting functions is the ideal way to get there faster. Off-site accounting experts help companies become agile in volatile environments by providing real-time snapshots that inform pricing decisions, marketing campaigns, client acquisition policies and so much more.
Managing financial accounts effectively is more critical than ever today when recruiting high-quality talent is challenging. Learn more about the myriad benefits of partnering with remote accounting services experts at AccountingDepartment.com with a free consultation today.