Small and medium-sized business owners are becoming increasingly wary of the costs of internal bookkeeping departments. Therefore, some of these businesses have decided to outsource their bookkeeping needs.
However, a sizable number of business owners are still not willing to outsource. It is mainly due to lack of adequate information, or they are victims of false information regarding outsourcing and its benefits. Many myths and much misinformation about outsourced accounting can confuse business owners and prevent companies from utilizing these highly valuable services.
Many people have certain misconceptions in their minds regarding outsourcing accounting services. They are hesitant about it and spend their lives doing their own bookkeeping that would be better done by professionals. Where they could have run their ventures on a very smooth ride with much more proficiency and expert guidance of accounting, they waste away their valuable time and resources in doing it themselves or managing an internal team.
Here are some of the most common myths when it comes to outsourcing accounting services for small businesses:
1. Outsourced bookkeeping services are expensive
While thinking of outsourcing accounting services for small businesses, business owners often believe that it would be way beyond their budget so they don’t even consider it seriously.
One thing that most business people seem to forget is that time is more valuable than money. As a business owner, what could you do with more business time on your hands?
Come up with more and better ideas to improve your operations and generate more profits right? It is precisely what outsourcing bookkeeping services allow you to do.
Outsourcing takes away a lot of pressure regarding time and the energy that might have been spent if done in-house. Therefore, you will have at your disposal more time and energy to carry out other activities like getting new clients and growing your business.
Outsourced accounting companies are an alternative for companies that can’t hire in-house resources and cover payroll taxes and other overheads. Outsourcing eliminates the need to cover these charges as companies only pay for the services they need. This makes outsourced bookkeeping a viable option that saves you both time and money.
2. Small businesses don’t need an accountant or a bookkeeper
Many small business owners believe that they can handle the bookkeeping themselves because of the smaller scale of their business. Similarly, they think that hiring an accounting company is not a necessity. But the fact is hiring a professional bookkeeper is necessary as he/she can record error-free transactions regularly and keep your books updated or else it can create complications when it comes to calculating revenue. Also, an efficient accounting system is necessary for every business which can be done only by hiring an outsourced bookkeeping company that will manage your accounts and help you fulfill your tax obligations.
3. Outsourced bookkeeping is not secure
The most common myth that is perpetuated about the outsourcing industry especially when it comes to the finance and bookkeeping industry is security. Some business owners are skeptical about the security offered by the accounting service providers. We all know that accounting services for small businesses aren’t easy to handle. Hence, people are constantly worried about the security of their data and do not feel secure enough to hand over their financial information to a third party.
Given the sensitivity of financial information, it is only normal that business owner feels concerned – but in reality, an accounting firm provides the best security measures for the accounting data – much better than the ones available within the business itself.
An established outsourced bookkeeping and accounting service provider holds wide and in-depth expertise about data security which reflects in the advanced security options and tools they use to protect the data.
Outsourced accounting firms take extensive measures to ensure the highest level of security for all financial documents. We conduct regular audits of all the files they possess to make sure there hasn’t been a data breach. We also implement greater security measures than your company could as we understand the sensitive nature of their work and need to maintain a reputation of reliability.
4. Outsourcing is the loss of control and visibility
Small and medium business owners think that outsourcing bookkeeping and accounting functions may cast a shadow over their business activities – which is absolutely not true.
Outsourcing accounting services for small businesses does not mean that you will lose control over the accounting affairs of your venture. Most people think that by outsourcing gradually the switch to accounting would be stolen away and they would be completely unaware of the tasks going on in their organization. But accounting firms are very cautious at it; we keep track of all activities and keep you updated about them on a daily, monthly and quarterly basis.
An accounting firm organizes the books and spruces up the accounts with one simple aim – to give you a better overview of your finances and help you make the right strategic and informed decisions.
5. Difficult to trust
This is probably one of the biggest delusions that business owners have during outsourcing accounting services for small businesses. They think that it would never be safe to trust an outsider as it includes delicate matters of money transactions, the company’s finances and figures and other confidential information, even though it’s not true. Bookkeeping service providers are professionals who know how to handle your secret files with utmost secrecy.
6. Outsourcing does not serve the purpose entirely
When it comes to outsourcing accounting services for small businesses, entrepreneurs think that apart from an outsourced accountant they would require an in-house accountant as well because the service provider would not or will render a full service. Whereas in actual scenario accounting outsourcing services extend end to end support to their clients.
7. Outsourcing is not a long-term solution
People think outsourcing is for the short-term only because they think outsourced bookkeeping services don’t add much value in the long run. However, outsourcing companies also offer strategic services such as financial consultancy, supply chain services, enterprise resources planning, etc.
Entering into a long-term partnership with an outsourced bookkeeping firm can enhance the quality of outsourced services where both parties benefit.
8. Accounting is only important during tax time
One of the common myths is that you need to focus on accounting only when calculating and paying taxes. It is true that accounting is crucial at tax time but it is not the only important time to get your bookkeeping handled professionally. It is necessary to pay attention to your financial statements at all times of the year and ensure that it is updated regularly. This practice helps in making your tax filing easier, mitigating risks and taking advantage of the growth opportunities.
9. Outsourced Bookkeeping & Accounting is for large businesses only
‘Outsourcing accounting bookkeeping services are only meant for large businesses’ – This is simply a myth. Did you know that the outsourcing concept first came into existence exclusively for small businesses just because they couldn’t manage everything?
Finding the best outsourced bookkeeping firm may seem like a big player move, but it is not reserved only for them. Large businesses do routinely outsource to increase their efficiency and productivity but that doesn’t mean outsourcing is for large businesses only.
Although outsourcing companies serve bigger clients as well, our main clients are small and medium-sized enterprises (SMEs).
Outsourcing can be the key to success for many companies. Especially newer companies and startups can learn a lot from working with outsourced bookkeeping service provider. For example, startup businesses can learn how to control costs, especially how they could achieve their breakeven point in the first months of operation.
Outsourcing companies can help these businesses make better decisions, improve processes, and secure a future for their products or services.
Conclusion
These were some of the misconceptions some businesses have when it comes to outsourcing accounting services. Hence, if you are the owner of a company, don’t believe in these myths and outsource your bookkeeping needs to a certified accounting firm so that the financial part of your company is handled properly by professionals.
Outsourcing is an excellent strategy for taking full control of the business. By bringing in a third party to scrutinize your books, you will gain knowledge of the actual financial situation of your business.
Therefore, you become better equipped to reconcile the business goals and strategies to improve your operations and financial management for the accelerated growth of your business.
Furthermore, an outsourced professional bookkeeping service provider will always ensure regular and timely delivery of reports. As such, you will also become more timely in making critical business decisions that depend on the bookkeeping records.
Clear all the misconceptions and work with professional accountants and bookkeepers to achieve your business goals. If you still have any doubts, feel free to get in touch with us.
BookRobo wants to free up your valuable time so you can focus on what you do best. We offer a range of accounting solutions for small businesses, including bookkeeping, payroll, and tax management. Contact us today to learn how our accounting services can help your business thrive.