9 Myths About Outsourced Bookkeeping Services For Small Businesses
Bookkeeping is critical for any business, yet many small business owners either do not know how to keep track of their finances or think they can save money by doing it themselves. The desire to do everything on your own might be alluring, but it can turn up your costs to a large extent. As a small business owner, you can opt for an in-house team, which also involves a considerable amount of hiring, training, and other costs. It is where outsourced small business bookkeeping services come to the rescue. However, many small business owners are still sceptical of handing over their financials to a third party. Are you one of those small business owners? Are you also hesitant due to common misconceptions surrounding the practice of outsourcing? Fear not! We are here to debunk those myths and set the record straight on outsourced bookkeeping services. In this blog, we will provide factual information about the benefits and realities of using outsourced bookkeeping services for your small business. So, say goodbye to confusion and hello to clarity – let us get started!
Myth 1: You will have to pay more
One of the most common misconceptions is that outsourced small business bookkeeping services are expensive. It could not be further from the truth! In fact, outsourcing can be a very cost-effective way to get the job done right. There are many reasons to support the fact that outsourcing is not overpriced. First, you can tap into a global talent pool when you outsource. It means you can find the best person for the job, no matter where they are.
Furthermore, when you outsource, you only pay for the work that is done. You don’t have to worry about overhead costs associated with hiring an in-house employee. Finally, when you outsource, you can get the work done faster and more efficiently than if you were to do it yourself. It is because an outsourced service provider comprises professionals who have years of experience and knowledge of the top cloud-based accounting software to manage your bookkeeping and accounting system. As you can see, there are many reasons why outsourcing is not overpriced. Thus, outsourcing is definitely worth considering if you are looking for a cost-effective way to get the job done right!
Myth 2: You will lose control of your finances
The second myth that we need to dispel is the notion that outsourced bookkeeping services will lead to a loss of control over your business finances. In reality, the opposite is true. When you outsource your bookkeeping function, you may not be directly involved in the bookkeeping process, but you can still provide input on how it is conducted. The difference, in terms of control, between outsourced bookkeeping service providers and an in-house team is not significant, as both have the same impact. Outsourced bookkeeping services providers often function as partners who are invested in your business growth. You can choose the level of service you need, offering you peace of mind. Additionally, service providers regularly update you with reports and maintain open communication, ensuring you always stay up to date with your business’s financial health.
Myth 3: You will not have access to real-time financial data
Another myth is that you will not have real-time access to your financial data if you hire outsourced small business bookkeeping services. However, it is simply untrue. With modern technology and proficient experts handling your finances, you can have access to your financial data anytime, anywhere. Moreover, it must be known that bookkeeping is an important part of any business and outsourcing it in no way means sacrificing control or access to real-time financial data. In fact, many bookkeeping service providers offer you better access to your financial data than you would have with an in-house bookkeeping and accounting team.
Myth 4: You will be exposed to greater risk
The next myth that exists among small business owners is that outsourcing is riskier than an in-house team. But is it actually the truth? The answer is no. Moreover, outsourcing your bookkeeping function helps eliminate the risk of accounting and bookkeeping errors as you gain access to more specialised and experienced professionals. In addition, reputable outsourced accounting and bookkeeping services providers take extra measures to ensure a high level of security of your financial data and records.
Myth 5: You will not have quality records
Contrary to popular belief, you can still have quality records when outsourcing your bookkeeping tasks. When it comes to quality financial records, outsourcing your bookkeeping is a very good way to ensure everything is done accurately and efficiently. It is because when you outsource your bookkeeping, you are hiring a team of experienced professionals who know how to maintain records properly. They help ensure accuracy in your financial records and can prevent costly mistakes or fraud. Additionally, they ensure quality control by enabling you to review reports regularly and detect any discrepancies or potential issues quickly and easily.
Myth 6: You will have to struggle to find a good bookkeeper
Another common myth is that you will have to struggle to find a good small business bookkeeping services provider. This is not true! There are many great providers out there who can offer you quality services and fulfil the role of a bookkeeper and accountant more efficiently than an in-house team. However, when looking for an outsourced bookkeeping service provider, be sure to do your research and ask around for recommendations. In order to do so, you can check online reviews to see what others have said about potential providers. Once you find a few service providers that meet your business needs, be sure to get in touch with them and ask questions about their services. It will help you narrow down your choices and find the best provider for your small business.
Myth 7: Your small business does not need outsourced bookkeeping services
Many small business owners believe they do not need outsourced bookkeeping services from a third party because they are not large enough. This is a myth that needs to be dismissed. An experienced team of high-skilled accounting and bookkeeping experts can often do the work more quickly and efficiently than an in-house accounting and bookkeeping team, be it a small or big business. In addition, by outsourcing bookkeeping needs, small business owners can avoid the need to hire and train new staff members. Whether you are thinking about outsourcing your bookkeeping or hiring accounts receivable or accounts payable outsourcing companies to streamline specific business functions, an outsourced team is what you need.
Myth 8: You need to be tech-savvy
Are you a small business owner who feels you need to be tech-savvy to outsource your bookkeeping function? If so, you are not alone. This is another common myth that we hear all the time. The truth is that though you need to have some sort of financial literacy, you do not need to be tech-savvy to outsource your bookkeeping tasks. In fact, many small business owners who outsource their bookkeeping find that technical expertise is one less thing they have to worry about. When you hire outsourced small business bookkeeping services, you can focus on running your business and leave the bookkeeping in the hands of experts. As a result, you can save a lot of time and reduce your stress levels.
Myth 9: Outsourcing is a new concept
Lastly, outsourcing is often believed to be a new concept. However, it is not completely true. It has been around for many years. The myth that it is a new concept may be due to the fact that it is not as well-known as it once was. It is likely because the accounting profession has changed and evolved over time, and outsourcing has become more commonplace.
Final words
There are many reasons why a business would choose to outsource its bookkeeping tasks. One reason can be that some small businesses may not have the internal resources to do their own bookkeeping. Others may want to focus on other business areas and, thus, outsource their bookkeeping to free up time and resources. In addition, some small business owners might want to streamline other business functions like payroll, accounts receivable, accounts payable, etc. In order to standardise such processes, they can rely on payroll, accounts receivable, or accounts payable outsourcing companies, respectively. Whatever the reason, outsourcing can be a great solution for small businesses.
While there may be some myths and misinformation surrounding outsourced bookkeeping services, the benefits gained by small businesses from hiring an external bookkeeper far outweigh any perceived risks or drawbacks. With preferential costs, enhanced accuracy, and reliability, outsourced bookkeeping services provide a comprehensive solution to managing finances efficiently while not compromising on quality standards. By assessing your organisation’s requirements carefully and selecting the right partner for your needs, you can easily capitalise upon this competitive advantage to stay ahead of your competition in today’s marketplace. If you feel outsourcing your bookkeeping needs is something for your organisation, do not hesitate to contact us today to get the best quality-driven bookkeeping and accounting services. We at Whiz Consulting have expert and experienced professionals to help you enjoy the benefits of outsourcing accounting and bookkeeping, so you can focus on growing your business and not managing the books.w