Early this year, companies in New Zealand began to switch to outsourcing jobs to cheaper markets such as the Philippines. Pay-TV company Sky Network Television began outsourcing customer service roles in the Philippines, while IT and content positions were given to an Indian firm. Research from Grant Thornton International Business Report (IBR) said that many new and upcoming businesses in New Zealand are much more open to outsourcing business processes.
New Zealand ranks 9th out of 45 economies surveyed wherein more than half of the businesses in the country either outsource or plan to outsource business functions. One of the main reasons for this is the size of companies in the country. New Zealand is predominantly made up of small to medium-sized businesses and it is too expensive or quite impractical for these companies to carry out all business operations in-house.
In terms of accounting, 62% of the New Zealand businesses surveyed said that they outsource their accounting functions to other countries. While several studies highlight the cons of outsourcing such as losing control of some of their business functions, many businesses still do it to improve efficiencies and reduce costs. In addition, some businesses do not understand what their accounting and finance departments are meant to do and are capable of doing such as accurate financial reporting.
Why is accounting and financial management important for New Zealand SMEs?
Accounting and financial management is important for New Zealand SMEs because it serves as the backbone of their operations. Through streamlined accounting, New Zealand businesses can effectively allocate resources, make informed decisions, and drive business growth. In having a solid accounting management system, SMEs gain valuable insights into their cash flow, profitability, and financial health.
Moreover, with sound accounting and financial management, small and medium businesses in New Zealand can identify areas of improvement, optimize their operations, and seize new opportunities for growth. In addition, this ensures compliance with regulatory requirements and builds more trust with stakeholders, investors, lenders, and business partners.
Why should New Zealand businesses outsource their accounting functions?
SMEs and startups in New Zealand encounter a distinct set of challenges. One of the most prominent challenges they face is attracting and retaining top talent. Limited resources and intense competition often make it difficult for SMEs to offer competitive salary packages and comprehensive employee benefits.
As a solution, outsourcing certain functions, such as accounting and bookkeeping, can provide SMEs with access to skilled professionals at a fraction of the cost of hiring in-house. Outsourcing enables New Zealand SMEs to focus on core business activities while leveraging specialized expertise in financial management. By partnering with reputable accounting services providers, startups and SMEs in New Zealand can free up internal resources to concentrate on strategic initiatives, while ensuring accuracy in financial processes.
What are the advantages of hiring outsourced accounting for New Zealand startups and businesses?
Hiring outsourced accountants from a reputable accounting service provider gives SMEs and startups the opportunity to delegate their accounting functions to external experts, allowing them to focus on their core business operations. When you hire an outsourced accountant, SMEs can benefit from a team of skilled professionals who have in-depth knowledge of New Zealand’s accounting regulations and practices.
In addition, when New Zealand SMEs and startups outsource their accounting functions to online accountants, it brings cost savings because businesses can avoid the expenses associated with hiring and training in-house accounting staff because outsourced accounting services are typically provided at a fraction of the cost. Second, despite the lesser cost, you will still have access to accounting experts. Accounting service providers specialize in financial and accounting management. Online accountants possess up-to-date knowledge of industry best practices and the latest accounting tools and technology. They can navigate complex financial regulations and ensure compliance while reducing the risk of errors and penalties.
And while New Zealand SMEs and small startups are not required to submit financial reports and submit themselves to financial audits, having an outsourced accountant helps businesses make better-informed decisions. The online accountant is responsible to give complete attention to detail for a more precise and reliable financial statement. Moreover, an accurate financial report provides transparency to stakeholders and helps SMEs in New Zealand build trust and credibility with investors, lenders, and other business partners.
Tailored accounting services for startups and SMEs
CloudCfo understands the specific needs and requirements of startups and SMEs in New Zealand. We offer tailored accounting and bookkeeping services that align with the challenges and goals of our clients. The services we provide are designed to provide the right level of support and expertise required by SMEs, ensuring a customized approach to accounting and bookkeeping management.
In addition, CloudCfo’s online accountants can assist these startups and SMEs in New Zealand with compliance and other regulatory requirements. Our accounting experts can help businesses navigate the complex landscape of tax obligations and maximize the deductions when needed. Our online accounting professionals can leverage financial data to provide valuable insights. Also, with the use of CloudCfo’s dedicated WebApp, New Zealand businesses can have more transparency in the tasks, timelines, and reports. This broad range of services ensures that SMEs receive comprehensive support in managing their financial operations.
Should New Zealand SMEs hire outsourced accountants?
Yes, New Zealand SMEs and startups should consider hiring outsourced accountants for a comprehensive and tailored approach to accounting and financial management. In hiring online accountants from a reputable accounting services provider, New Zealand businesses can benefit from the expertise, cost savings, increased efficiency and transparency, and accuracy in all financial reports. With the expertise and experience, coupled with cutting-edge technology, SMEs and startups in New Zealand are rest assured that their finance and accounting functions are well-taken care of so you can focus on your core business activities, drive growth, and navigate the dynamic business environment with confidence.
CloudCfo is a global provider of top-notch accounting talents in the US, Australia, New Zealand, and Canada. Our team of accounting professionals provides accounting and finance expertise across different industries such as tech, food and beverage, retail, and real estate among others. Through our tech-empowered, process-driven, and output-focused approach to handling our client’s business accounting and finance functions, business owners can focus more on scaling and growing their businesses. We tailor our services according to each of our client’s business needs and offer flexibility, full transparency, and accountability in all the systems, workflows, and processes that we implement.