Once your business starts growing, you do not have enough time to handle everything that is required. So, you much have professional help to manage your bookkeeping needs. Outsourced bookkeeping is the best solution. You must decide whether you hire a bookkeeper or outsource your books to expert outsourced bookkeeping services. There is no right or wrong answer; instead, focus on what will work best for you and your company.
Outsourced Bookkeeping Services
The service that provides full bookkeeping department experience for small businesses remotely is called outsourced bookkeeping services. It can handle day-to-day transaction coding, payroll, account payables, account receivable, managing financial reporting, and many other services.
An outsourced bookkeeper works both part-time and full-time with you to handle your bookkeeping, so you can concentrate on your core business and make profits. In addition to this companies who cannot afford resources to hire an employee can choose this outsourced bookkeeping service.
As outsourced bookkeeping is quickly becoming more popular, especially since the beginning of the pandemic. This is mainly because outsourcing helps businesses save money and time, and it also allows them to continue operating their finance department even when they must close offices or lay off employees. Outsourcing is an extremely effective solution to overcome tough economic times.
We cannot say completely say that outsourced bookkeeping services are the best solutions for all businesses- like hiring a bookkeeper, outsourcing your bookkeeping can also have certain advantages and disadvantages. So, to help you choose if your business can benefit, we have listed the most important pros and cons of outsourcing your bookkeeping.
Advantages of Outsourced Bookkeeping
There are many advantages to hiring an outsourced bookkeeping service. Here is the list that can help you to learn more.
Remote bookkeeping is more cost-effective than hiring an in-house bookkeeper to handle your finance tasks. Outsourcing will eliminate several costs associated with hiring, dealing with payroll, and employee deductions. Outsourcing will also help in reducing other business overheads like dedicated office space, IT support, data backups, and more. All these costs add up over time.
Outsourced bookkeeping means that you only pay for the work done, without any extra cost. Many bookkeeping firms also have a fixed fee option, so your costs are consistent each month, making it easier to budget.
Saves your time
Bookkeeping is a time-consuming and confusing task that can take your focus away from your business. This latest bookkeeping software can make everything seem easy, it will take time to do payroll, calculate taxes and contributions, etc. And as a business owner, you know more about the value of time and the cost of money. Assigning bookkeeping and payroll to your team will not be a good idea or the most profitable choice. Outsourced bookkeeping service, will enable you and your team to focus on your core business to increase your business growth and generate revenue.
You can benefit from outsourcing by having professionals manage your accounts. Some businesses will have a lot of sector-specific experience. Others might concentrate on specialized industries like construction or digital marketing firms. Additionally, outsourced bookkeeping will be able to provide other services like giving advice on your business strategy, providing additional resources, and helping your growth goals.
Lower Fraud Risks
No matter how much you trust your staff, fraud is always a possibility in a company, and it most frequently occurs in the bookkeeping and accounting division.
Employed accountants and bookkeepers are in a position of trust and have access to confidential information about your company. They may have visibility of your profits, loans, turnovers, personal expenditures, and more. They may have the capacity and information to abuse their position.
You should always keep the data secured and confidential.
The possibility of fraud and theft is eliminated by outsourcing accounting. To stop fraud and protect data, accountants will use sophisticated security measures and control systems.
Improve your service and efficiency
If you want to outsource your books, the outsourced bookkeeper’s job is to issue invoices in a timely way and ensure your bills are paid on time. They can help your business to be more efficient by reducing late payments. In addition to that, by taking these out of your hands, you can focus on your core business needs.
Disadvantages of Outsourced Bookkeeping
As a coin has two sides, outsourced bookkeeping can also have some disadvantages:
Loss of Control
Sometimes you may not be able to keep a close eye on bookkeeping if it is contracted out. You will have less control over confidential data and financial information. It is important to trust the bookkeeper who is taking over these roles.
Risk of choosing the wrong contractor
There is always a danger that a project you contract out from your company will not turn out exactly how you want it to, and in the case of accounts, mistakes could be made. Find out who to approach by consulting your advisors, mentors, and fellow business owners.
Danger in confidentiality and security
Business information is very confidential these days and your business may not be able to operate without it.
There is a risk that confidential data information could be compromised. It is important to be careful when assessing your contractor for security reasons so that you will have peace of mind about your business. Make sure the contract contains a punishment provision in the event of an incident.
Remote Books Online
Outsourced bookkeeping can offer significant advantages. To determine whether outsourcing is right for your business. Consider the advantages and disadvantages carefully and request a quote from Remote Books Online. We provide the best outsource bookkeeping service for your business with our expert team at affordable prices. Try our one-month free bookkeeping service now and click to get a quote.