Outsourcing has become a dirty word in our society. When people hear outsourcing, they probably think of customer service call centers across the world. And why wouldn’t they? Many American companies have made a bundle by sending jobs overseas, especially to places like India where wages are much cheaper.
That’s basically why I hate the word outsourcing now; because people have such a negative view of it. Sure, outsourcing can be bad or greedy in some cases, but it can also be very beneficial – especially for small businesses.
Outsourcing does not mean offshoring
We’ve used this phrase on our blog before, but it bears repeating. We’re talking about outsourcing your accounting to a firm here in the US (especially one that specializes in the services it provides) – it’s still an outside company, but it’s one within the country.
What are the benefits of such an arrangement?
There are actually quite a few. For starters, it will save you some money. When you have to hire an in-house accountant for a small business, that’s a major expense – and who’s to say they’ll have enough work to fill eight hours per day? If you’re running a start-up with four employees, there’s no reason for you to hire a full-time accountant. So what’s the alternative?
Outsourcing your bookkeeping eliminates that whole scenario. Instead of hiring someone yourself, you can use a dependable accounting firm to handle the books. You now have access to your own personal bookkeeping service without having to worry about finding candidates, interviewing them, hiring one and then hoping it pans out. And oh by the way, you will also have to pay that employee a continuous salary. Doesn’t outsourcing sound so much easier?
A firm allows you to grow without concern for the numbers
As your business begins to grow and you expand operations and/or hire more employees, your accounting will become more complicated. And if you grow large enough, it will eventually become too much for a single employee to handle. So now you’ve got to hire more people. Sure, it’s a nice problem to have – needing to hire more employees – but why deal with the hassle? By outsourcing, you know that your accounting firm can handle an increased load; after all, it’s their job to do so!
Putting a price on peace of mind
As a final consideration, outsourcing to a reliable accounting firm allows you to have peace of mind. We’d all like to think we’re strong judges of character, but people make mistakes. If you hire a disreputable or shady accountant (which unfortunately happens all the time), your business could be robbed blind with no available recourse. Is that the sort of risk you want to take with your livelihood?