When is the right time to outsource accounting?

Every company goes through growth phases in which accounting requirements change. While start-ups often get by with simple systems, it becomes increasingly difficult for SMEs to manage their accounting internally as transactions and regulatory requirements increase. But when is the right time to outsource?

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Indicators for the right time to outsource

Certain signs indicate that a company should outsource its accounting:

• Growth and scaling: An increasing volume of business means more accounting work.
• Complex tax regulations: New laws and tax requirements can be difficult to navigate without expert knowledge.
• Lack of internal expertise: Accounting errors can result in high costs and penalties.
  
• Time-consuming: In-house accounting takes up resources that could be better used for core business activities.
• Technological challenges: Modern accounting software requires training and investment.

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Advantages of outsourcing accounting

Outsourcing accounting offers numerous advantages:

• Increased efficiency: Companies save time and can focus on their core business.
  
• Cost savings: External accountants are often cheaper than an internal accounting team.
• Access to expert knowledge: External service providers specialize in accounting and are always up to date with legal changes.
• Minimization of errors: Experts ensure accurate and timely accounting.
• Flexibility: Companies can tailor the service to their needs.

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When does outsourcing make particular sense?

Not all companies benefit equally from outsourced accounting. Outsourcing is particularly recommended for:

• Start-ups: To establish professional accounting processes right from the start.
• SMEs: That can no longer handle growing accounting requirements internally.
• E-commerce companies: With high transaction volumes and complex tax requirements.
  
• Service companies: To focus on customers and projects.

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Practical examples: When have companies outsourced their accounting?

Example 1: Start-up from Bern

‍A tech start-up decided to outsource its accounting after securing financing. The team was able to focus on product development while the accounting was handled professionally.

Example 2: Trading company from Zurich

A medium-sized trading company was having difficulty meeting tax deadlines. Outsourcing ensured that all requirements were met and the company avoided penalties.

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Decision-making aid: When should you outsource your accounting?

If you answer “yes” to one or more of the following questions, outsourcing is a sensible option:

• Do you lack the time and resources for accounting?
• Would an external service provider be more cost-effective than an internal solution?
• Have tax regulations become too complex?
• Are mistakes regularly made in your accounting?
• Would professional advice be useful?

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Conclusion: The right timing is crucial

Outsourcing accounting can significantly increase a company's efficiency if done at the right time. Companies should regularly review whether their accounting can still be handled efficiently in-house or whether it is time to outsource it. A strategic decision in this area can bring long-term benefits.

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