Outsourcing bookkeeping and accounting services is increasingly becoming something of a standard practice for small businesses. Perhaps one reason is the affordability factor. There is also the exponential rise of remote work that we’ve seen in just the past couple of years. This shift to a remote work mentality has made outsourcing departments/roles such as accounting and human resources for example a far more common practice.
The question is, is this the right move for your small business? Many business owners feel that it is their duty to handle the bookkeeping and accounting in-house. But why? If you can get high-quality accounting/bookkeeping services by outsourcing to a third party that deals strictly in providing such services, then it seems as though this could be a smart move—especially if you and/or the members of your team lack the relevant education and skillset. In this article, we take a look at some of the benefits when it comes to outsourcing your small business’s accounting work.
Leaving it to the experts
There is certainly something to be said for leaving those tasks that are otherwise outside of your area of expertise up to the experts. You wouldn’t trust maintenance on your car to someone other than a qualified mechanic, right? So why would you leave your bookkeeping up to someone who wasn’t qualified in this particular area…
Outsourcing has proven an ideal solution for many small businesses that simply don’t have the in-house capabilities or capacity to handle this role. Why else might you outsource your accounting/bookkeeping:
1) Affordability. Perhaps the biggest draw to using an outside service for your accounting needs is that they are quite affordable. Not to mention, they will likely save you money in the long run. When it comes to your taxes for example, certified accountants tend to understand more about where potential tax breaks, deductions and savings are. In some cases, this can amount to a great deal of money saved. Plus, if you were thinking of hiring someone in-house to fill this role, this can be a more costly project versus using an outside source. You have the cost of salary, insurance, and benefits packages that come with hiring a full-time employee.
2) Reduce Risks and Fraud. Entrusting the books to one person can be risky at times. With small businesses especially, it’s easy to manipulate the books. When handing your accounting and bookkeeping services over to a third party, you have a dedicated team and thus multiple sets of eyes on your books. Not to mention, they are looking to establish a reputation for honesty and reliability and are dependent on satisfied clients to this end.
3) Enhance Your Processes. Think about it, a team that specializes in small business accounting probably has the latest technology and innovation at their disposal. In this way, they help boost your own company’s processes and make sure that your books are taken care of in an updated and efficient manner. Things stay on track and up to date.
4) Focus on Your Business. Let’s face it, balancing the books and handling your accounting needs is without question a full-time job. This can easily divert your attention away from running the company. By hiring a third-party accounting firm, you get more time to focus on business operations and customer service among other roles that you have.
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