Why is Outsourced Bookkeeping Better Than In-house Bookkeepers?

by Dillon Patterson Article Publisher

This is the most common question asked by many small businesses, whether to do bookkeeping in-house or outsource it to a third-party provider. Let's understand which one is a better option for you!

Bookkeeping is a vital part of every business. Bookkeeping can be tiring and, in some cases, it can be boring as well. Businesses rely on bookkeepers for decision making and analyze business records and data. Bookkeeping can be done either through in-house bookkeeping departments or to an outsourcing firm. Both methods of bookkeeping help businesses in many ways. Outsourcing firms ensure quality, accuracy, and prompt delivery while handling the bookkeeping work for their clients.

What is a Bookkeeper?

A bookkeeper is a person who handles the financial transactions coming in and going out of the business. This includes accounts payable, accounts receivables, sales invoicing, cash and banking, reconciliations, completing VAT, returns, data management, and payroll. Their role is to ensure a business owner to stay in control of your finances. They provide financial information and statements which are helpful in decision-making and ensures if the business is running efficiently.

Following are the benefits of outsourcing Bookkeeping:

Expert advice and knowledge of a qualified bookkeeper:

Whether you hire an in-house professionals’ team or outsource to an outside firm, the quality of professionals is the top priority. Keeping bookkeeping in-house certainly has its own limitations- could potentially lead to knowledge gaps, which could lead to issues in the long run thus requiring external help. On the contrary, outsourcing firms have experts who are always under training and are closer to evolving technology.

Cost benefits:

For small businesses, cost becomes a significant factor. Outsourcing bookkeeping services can be cost-effective. There is no hassle of hiring and training a bookkeeper and paying a salary. No additional overheads such as holiday, payroll taxes, pension contribution, training cost, retirement plans, medical benefits, sickness, etc. In-house bookkeeping makes it mandatory to look after all these expenses. But with outsourcing, you only pay for the services that are required by you.

Peace of mind:

As a business owner, it frees up your time and looks for the opportunity to grow. And also allows you to spend time with your family members or doing what you enjoy the most!

Latest technology:

When you outsource accounting and bookkeeping services, you get access to the latest technology along with expertise inputs. The use of cloud technology allows businesses to get access to real-time information anywhere and anytime to make any business decisions. The use of technology has the added benefit of setting meetings virtually between the client and a bookkeeper.

Financial Reporting:

Financial reporting is distinct for each business and it depends on many factors such as monthly transactions, industry considerations, and much more. Working with an in-house bookkeeping department might be a little problematic as they do not have the right skill set required for a month-end report that is accurate and error-free.

While outsourcing these services can be fruitful, as they help in avoiding late or inaccurate financial reporting. They make the procedures streamlined for businesses. Financial reporting can be accurate and delivered on time with outsourced companies as they have a team of experts and trained professionals.

Internal Control:

This is another important factor to consider when choosing in-house or outsourced bookkeeping services. When you choose in-house bookkeeping, there are chances of fraudulent activities. Sometimes, there is a discrepancy of records which when comes to notice of the business owner, it's too late.

When it comes to outsourcing, there is a division of duties. In outsourcing firms, there are two or more professionals assigned to keep a track record of the accounts and this ensures the records are reviewed and maintained thoroughly without any discrepancies.

Ensure quality work:

Getting the work done timely, doesn't mean compromising on the quality of work. An outsourcing firm has qualified and trained professionals in their team. They believe in building long term relationships by delivering the highest quality of work delivered is their primary goal.

Conclusion:

Outsourcing services can be the best-suited option for your business. It is more efficient and reliable than the in-house department. Some still prefer to have a dedicated in-house bookkeeper who sits and goes through everything on a daily basis. But at the end of the day, it's your call on how you want to run your business. In today's times, saving money is the utmost priority so be wise when investing your money.

Absolute Bookkeeping Solutions in Las Vegas is here to help you and your business with all of your bookkeeping & tax preparation needs. From data entry to monthly financial statement preparation and analysis, we are here to help you reach your bottom line.

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Created on Nov 2nd 2020 11:48. Viewed 345 times.

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