Most businesses are beginning to learn that the best way to conserve funds and other resources is to outsource any work that is not a part of your core competencies. For most companies, accounting and bookkeeping fall into that category. There is a lot to be gained by transitioning to outsourced bookkeeping, yet many companies aren’t ready to make that switch. Often this is because of some misunderstanding about how the process actually works. Here are some of the misconceptions regarding outsourced bookkeeping which we’d like to try to clear up:
- “I can’t afford it”
We know that you have more than enough expenses already, and you're trying to keep your business afloat. Another recurring expense that you haven’t budgeted for is something you really don’t want at this time. While it’s true that you’ll save that bill if you manage your accounting in house, outsourced bookkeeping will actually save you money in a number of ways. Primarily, it frees up your time and resources for more valuable, revenue-generating efforts. And let’s not forget that accounting professionals will have the expertise to prevent costly mistakes you might make on your own, as well as finding tax breaks and loopholes that you probably aren’t aware of.
- “I can’t trust outsiders with my finances.”
If you’re running a startup, you’re coming from a strong DIY mentality. That’s OK, and in the earliest days it was necessary to do, well, just about everything, on your own. The last thing you want to hand over to a stranger is your sensitive financial information. Keep in mind, though, that small businesses like yours are actually often subject to employee fraud, most of which is centered around, yup, you guessed it - bookkeeping. With an outsourced bookkeeping firm, you add an additional layer of review which will help keep internal processes in check, and the firm is of course completely accountable for all of their work. Generally speaking, it’s safer to trust an outsourced bookkeeper than an in-house one.
- “We’re too small to make it worthwhile.”
Many small businesses think that outsourcing bookkeeping and other services is only viable for huge companies, but this couldn’t be further from the truth. Actually, the outsourcing model is ideal for growing companies because it is a highly scalable solution. You may be doing just fine with the internal resources you have today, but what happens when you experience a rapid growth spurt (as we hope you will!)? It’s tough to hire new staff when you need them on short notice, and then what will you do if business slows down again? Lay them off? When you use an outsourced bookkeeping group, they’ll assign resources to your account as the workload demands. Your virtual team will be easily increased or decreased in size to scale with the ebbs and flows of your business needs.