Mostly, small companies don’t need to hire full-time bookkeepers to manage their books, working 40 hours a week. Many small business owners don’t even bother hiring bookkeepers and prefer managing the books themselves. Additionally, some small business owners even assign bookkeeping tasks to an all-purpose administrative assistant as an additional duty. These things more often than not don’t work well for small businesses. Managing bookkeeping on own takes away the valuable time from small business owners to focus on core business operations. Outsourcing bookkeeping services for a small business from a professional accounting firm can aid small companies in managing their books cost-effectively.
In-House Bookkeeping vs. Bookkeeping Services
Managing your business books yourself can affect prospecting, selling, customer service, service & product improvisation, employee training, and business growth. Plus, you may let your business bookkeeping suffer if you hire bookkeeping tasks to an all-purpose administrative assistant. It can happen because most general administrative staffers aren’t bookkeeping experts. They aren’t usually bookkeeping professionals because they are unfamiliar with state-of-the-art technology and standard bookkeeping practices. In-house bookkeeping has its cons; thus, you should consider outsourcing bookkeeping from one of the reputable bookkeeping service providers.
We shall justify to you how a bookkeeping service is better than in-house bookkeeping. Here are the reasons to justify this statement of ours:
Better Control over Expenses:
Hiring full-time bookkeepers is expensive for small business owners considering factors such as employee training, benefits, etc. In addition, small business owners shouldn’t consider hiring in-house bookkeepers if the cost of hiring them is huge. Instead, they should invest the extra money on core business operations they may pay to in-house bookkeepers to improve productivity. Outsourcing bookkeeping services from a professional accounting firm, such as GTA Accounting gives businesses better control over expenses, mentioned below:
- It reduces benefit and compliance expenses
- A business can avoid taxes like Canada Pension Plan (CPP) and Employment Insurance
- Get rid of the need to pay vacation pay while an employee doesn’t work
- Lessen expenses on office space and office supplies
- It also reduces the risk of employment discrimination and harassment lawsuits
Many small business owners save thousands of dollars yearly with outsourced bookkeeping. Thus, you may also consider outsourcing bookkeeping for your small business to save money and better control your expenses.
Prevent Partner Relations:
Usually, most bookkeeping and accounting work in a closely-held business fall on the shoulders of one of the partners. Nevertheless, a deliberate mistake in data entry can cause a company to suffer an unexpected loss. There are also situations when the bookkeeping mistakes of a business partner have disintegrated the partnership. Plus, business partners, in rare cases, have manipulated the books to benefit themselves at the expense of business and partners. Outsourcing bookkeeping services for a small business from a professional accounting firm lowers the risks of infighting among partners.
A Business Benefits from an Unbiased Financial Opinion:
Unlikely, in-house bookkeepers tell business owners what they need to hear. They engage in usual bookkeeping tasks to meet their daily assignments for a business. In other words, they only tell business owners what they want to hear, unlike bookkeepers who outsource bookkeeping services. Hence, small business owners benefit from an unbiased financial opinion of bookkeepers through outsourcing.
Improved Data Security and Privacy:
At times, in-house bookkeepers aren’t reliable and disclose salary or payroll information to favoured co-workers. It’s a violation of the trust employers have for their employees, but it can happen because of human nature. Contrarily, third-party bookkeepers understand what data security and privacy mean to a business. It’s unlikely for offsite bookkeepers to leak confidential business information to anyone outside of channels.
Moreover, outsourcing bookkeeping to a virtual accounting firm entails upgraded data storage to the Cloud with a constant backup. Hence, outsourced bookkeeping aids businesses with improved data security and privacy.
There are various advantages of outsourcing bookkeeping services for small businesses than hiring in-house bookkeepers. You should also prioritize outsourced bookkeeping for your small business over in-house bookkeeping to cost-effectively manage your books of accounts.
Usually, small business owners don’t need to hire full-time bookkeepers to manage their books. Plus, many business owners prefer handling the books themselves or assigning the bookkeeping job to all-purpose administrative assistants. Hiring in-house bookkeepers is costly for small business owners. Nevertheless, they have the option to outsource bookkeeping services for a small business from one of the virtual accounting firms. Besides, there are various advantages of outsourced bookkeeping for small business owners over in-house bookkeeping that are mentioned below:
- Outsourced bookkeeping aids a business to control its expenses efficiently.
- Plus, outsourced bookkeeping protects partner relations in a closely-held business
- Small business owners also benefit from an unbiased financial opinion from bookkeepers who outsource bookkeeping services.
- Outsourced bookkeeping aids a business with improved data security and privacy.
In a nutshell, the bookkeeping services of a professional accounting firm benefit small businesses in a number of ways.