Originally published in FINSMES, March 3, 2020
When it comes to your business, who’s in charge of handling the accounting and bookkeeping? Do you have an individual in-house? Or are you dealing with all the company finances yourself as the business owner? Maybe it’s time to consider outsourcing. It’s essential to look at the growth of your business and put your focus and attention on where it really matters. Leave the burden of dealing with your business finances to an outsourced bookkeeping service.
What’s outsourced bookkeeping?
A bookkeeper is a professional who manages the day-to-day finances of a business. They provide the business owner with all the crucial information that will help them make financial decisions for the future. They are necessary for the business to stay afloat and grow. Whatever the type of business, bookkeeping and accounting services are essential for daily operation.
Bookkeepers are very great to have on staff. However, there are even more advantages to outsource and hire from a third party. These types of bookkeepers typically work remotely and handle everything virtually. Whatever the seasonal changes or market changes, the bookkeeping services will adapt to your needs.
There are many differences when it comes to in-house and outsourcing services. They each offer different workflows when it comes to managing the bookkeeping and accounting for your company. One of the main differences is that when it comes to outsourcing, it’s typically the cheaper choice and offers the most expertise.
Here are some of the critical differences in why outsourcing is the better option:
Outsourcing provides higher quality and expertise.
It reduces the risk of fraud.
Alleviates late and meaningless financial reporting. This includes inaccurate reports.
It’s the cheaper choice.
How does it work?
Running a business takes a lot of work. A handful of this involves bookkeeping. This can include accounts payable and accounts receivable, logging receipts and expenditures, and also tracking profits and losses. It can get so intense that there’s a point where you have no choice but to hire a bookkeeper. This professional will handle all these tasks, but they will be able to do it by telecommunicating electronically. Once you’ve found an outsourcing company that you trust to manage your finances, you must communicate with them online. That person will then deliver your accounting documents and reports to you electronically, depending on whatever your specified contract states.
Keep in mind that bookkeepers are an essential part of overall bookkeeping. However, it’s unsafe to assume they can offer complete solution.
It’s essential to understand the difference between a bookkeeper and an accountant.
If your business’ goal is to grow, then you must have a proactive bookkeeping and accounting solution.
What are the benefits?
When it comes to a business or organization’s finances, there’s a lot of information that must be kept private and secure. Imagine if the data got into the wrong hands. You can be facing a massive headache later. Luckily, with the help of an outsourced bookkeeping service, they can help you in more ways than you think. If you hire an internal bookkeeper, it has to be an employee you completely trust. Maintaining confidentiality isn’t a simple task. This employee will know your business’ financial health. If you outsource, it will give the owner some peace of mind, and remove the chance to have member of their company compromising information.
Training and Management
When it comes to a bookkeeper, it’s the business owner’s job to do some training of the bookkeeping to whoever they decide to hire internally. This procedure is flawed because most business owners aren’t in the position to train bookkeeping staff. It isn’t their expertise. This is why it’s important to hire an outsourced bookkeeper who’s up to date on the latest regulations and software.
When a business first begins, a bookkeeper may not seem like the biggest necessity at the time. However, small businesses tend to grow at a rapid pace. During this satiation, bookkeeping services are needed. If a company decides to hire an outsourced service, that service will offer a plethora of information that scales to the needs of the businesses.
Business owners think they are saving money by covering and managing their own bookkeeping. They also think it’s more beneficial for the company to hire their own internal experts. However, this isn’t the case. By doing this, they are wasting precious time and attention on areas where they aren’t needed. Instead, they should be extending their time and energy to areas that will help the business grow. If they choose the route of outsourcing, they free their time and can continue to do what they know best. They can run the business.
Tax and Audits
Unfortunately, the IRS is always watching. There may be some situations where they feel the need to investigate and audit your business. If this happens, you must have a bookkeeping team to cover you. These professionals prepare financial records that make both your business and the IRS happy. The last thing the IRS will do is to question your integrity. Your financial data will always be pristine.
It’s time to take advantage.
Without a doubt, we’re living in the digital age. Because of this, your business can benefit in many ways with the right team supporting you. With the help of outsourced bookkeeping services, these experts can work with you virtually and onsite. The same can’t be said for an in-house bookkeeper. All you need to do is to take time to research the perfect outsource service for your business. Ensure you’re finding a team that suits your company’s needs. If you need to learn more about outsourced bookkeeping, there are many resources available online. Stay on top of your expenses and your overall business’ financial health by outsourcing today!