Pros and Cons of Outsourcing Bookkeeping
Organizing and streamlining your business operations and logistics is the ultimate goal of every business. Outsourcing bookkeeping and accounting tasks are one such way to efficiently run your business. The financial professionals assist you in handling your financial records and finance-related concerns. These industry experts are a team of highly accredited and trained professionals. They help you in running your business better by taking away these tasks off your hand so that you can get more time to run your business and generate better profits.
There are various advantages of outsourcing your bookkeeping activities, like saving overhead employment charges and additional costs. These hard to pass up advantages have made businesses largely take the plunge.
But, then there are some businesses that still are not completely sold on the idea of giving the reins of their financial operations in the hands of a third party.
Charting out a complete list of the pros and cons of outsourcing bookkeeping operations of a business can help you make the decision better.
Pros of Outsourcing Bookkeeping for Your Business:
More than one-third of businesses, outsource their accounting operations to professionals and more are predicted to do so in the year 2020. Here are some of the advantages that your business can benefit from, by outsourcing your bookkeeping activities.
Save Time and Money:
When you outsource your business financials to a professional team of bookkeepers, you are able to save on overhead charges of hiring an in-house team. Add to that, you are able to reduce costs on additional office space, rent, employment taxes, and the opportunity costs coming with them. Outsourcing bookkeeping tasks helps you save on 79% of salaries. You also get to majorly save on time spent on undertaking bookkeeping tasks. Averagely, a businessman spends 4 hours every week on bookkeeping tasks. When you outsource this, you can use the time saved on taking care of other aspects of your business.
Get Experts and Their Valuable Knowledge on Your Team:
With industry experts and leading professionals on your side, you will get error-free, accurate, and compliant filings. They are not just your bookkeepers, but your team of financial advisors who help you maximize your savings and enhance your financial health. They help you gain the maximum tax benefits by strategizing your finances right from the start and help you make benefitting decisions for your business.
Improve Your Efficiency:
When you outsource your accounting to professionals, they make sure that you are tax compliant, a step ahead with your financial planning, and maintain an error-free record of your receivables and payables. When your financial health is in the hand of professionals, you can rest assured about your business’ profitability and success. After all, the beginning of any successful enterprise is always in the efficiency of how well its blueprint is laid down!
More Internal Control:
With outsourced bookkeepers, you greatly reduce the potential mishandling of your books, sudden frauds and get better control over your finances. By taking it out of the hands of an in-house team and giving it to professionals, your books are updated, error-free, and out of the hands of potential security threats. They make sure that your books are balanced and all the dealings are done in a transparent manner. So that you continue to be the key decision-maker of your business.
Allocate Resources for Further Expansion:
The time and money you save on bookkeeping activities can be used to take care of the expansion and efficient running of your operations. Every mid and small-sized business needs to have a dynamic schedule and efficient logistics to be able to become better with time. By outsourcing your bookkeeping activities to professionals, you can use the time saved to enhance your business.
Cons of Outsourcing Bookkeeping For Your Business:
Loss of absolute Control:
Some businesses believe that it is easier to communicate and work with an internal bookkeeping and accounting team, vis-a-vis the one that is outsourced. They believe that one loses control over how their accounting operations are handled. Although it might seem a plausible scenario, the truth is, any such reservation can be easily dealt with and sorted, with proper initial dialogue and contractual agreements. In reality, an outsourced bookkeeper is available to you 24×7 and works in the time and schedule that deems suitable to your business.
Hidden and Add-On Costing:
For some enterprises, outsourcing bookkeeping may sound like a cash-saving alternative to an in-house bookkeeper. But chances are that there are hidden charges and covert costing to added services. Again, what seems like a potential scenario, is in reality far from reality. The highlight of outsourcing bookkeeping is that you are able to pay only for the services that you avail for. Add to that these transparent plans are bound by contractual terms of business and thus, are not modifiable easily. So you will never be surprised with an unexpected bill and inflated rates of services, ever!
Questionable Security Standards:
The idea of outsourcing your valuable financials and business’ books over the internet to a third-party is a major fear for many organizations. But, the reality is that outsourced accounting and bookkeeping firms use the highest standards of cybersecurity, protection, and encryption to safeguard you and your business from any potential threat. In fact, even internally, your books are only handled and accessed by individuals you accept to and agree for. All your records are stored on the cloud so that you have uninterrupted access to everything. As a matter of fact, there is far better security for your books and financial records with outsourced bookkeeping as opposed to in-house.
Outsourcing Bookkeeping Pros and Cons – Running a business is a dynamic activity, Every logistic and style of running a successful enterprise changes with time. But, what doesn’t change is the need to continuously evolve and include healthy changes to make your business better and in-line with the changing times. Outsourcing your bookkeeping activities is one such domain. With the lesser time involved in taking care of your books, ensuring their accuracy you can use your resources intelligently and plan your future better. With a team of thorough professionals, solid bookkeeping ethic, and complete tax compliance, you can be assured of the right team on your side!