Small business bookkeeping and accounting bring loads of complexities and choosing whether to do it in-house or hire an outsourced accounting firm adds to your woes. Bookkeeping is a crucial element of your business as well-maintained books not only aid you in keeping a sufficient budget aside for your business growth but also ensure that you remain in the good books of the law.
Bookkeeping and accounting always top the priority list of business owners and entrepreneurs because of the compliance benefits it brings along. To remain competitive in the contemporary market that’s burgeoning at a rapid pace, owing to the latest technological developments, small business owners must focus on keeping their account books flawless.
So, as a business owner and entrepreneur running a small business which one is your best bet- In-house accounting or outsourced bookkeeping?
Outsourced bookkeeping is gaining immense popularity over in-house bookkeeping because it brings a whole slew of advantages. While some may believe that managing books in-house allows more control over their accounting books, this one advantage is not enough to rely on the latter. That’s also because outsourced accounting firms offer an entirely different workflow, and that’s where the difference lies.
Let’s take a quick look at the pros and cons of in-house and outsourced business bookkeeping on certain parameters.
Having an in-house accounting team can be a costly affair for any organization, particularly small and medium-sized businesses. You not only invest in their payout and other benefits but also in their training. Besides, infrastructural expenses and other overhead costs are associated with this form of hiring.
Outsourced bookkeeping services, on the other hand, do not require you to pay for all of these elements. Paying only for the services you use empowers your business with a lot of flexibility and freedom.
2. Access to the latest technology and expertise
Access to the latest technology and automation are some of the key benefits of outsourced bookkeeping. You do not have to buy the software yourself or make other expenditures. With bookkeeping being outsourced, you will be more relaxed as there is potentially no risk of fraud or data breach.
What’s more? Outsourced accounting firms are always abreast with the latest developments in the industry, norms, and taxation rules. By outsourcing your accounting and bookkeeping, you leverage the experience and expertise of accounting experts.
Choosing to create a high-end infrastructure in-house to avail of these benefits will certainly be costlier than outsourced bookkeeping in comparison to hiring an in-house accountant.
3. Quality of work and productivity
Small business owners and entrepreneurs find outsourced business bookkeeping their safe bet. It allows them to focus on the core areas of their business whilst their accounting books are being taken care of with utmost precision and efficiency.
Professional accounting firms such as FinAccountants have stringent quality parameters, and their accountants and bookkeepers possess the necessary accounting knowledge to keep your books in good shape at all times.
4. Financial reporting process
Inaccurate and meaningless financial reporting is the last thing you want to see. Not to say that in-house bookkeepers are not competent enough to ensure flawless, accurate, and timely reporting; however, the truth of the matter is that they must have the necessary exposure to the industry consideration and experience in managing financial reporting keeping quite a few factors in mind.
Besides, more often than not, the pool of in-house accountants is occupied with a bunch of responsibilities other than core accounting which hampers the quality of financial reporting. Accurate financial reports are key to cash flow and well-informed decision-making as a business owner and entrepreneur.
When an outsourced accounting firm manages business bookkeeping, you can expect a streamlined process. You can pick the service you are interested in and make the most of their expertise, experience, and resources. Outsourcing accounting and bookkeeping to an accounting firm shouldn’t always mean your in-house accountant getting pink-slipped.
The Bottom Line
It can be concluded that in-house bookkeeping might be a good choice for some businesses; however, opting for outsourced bookkeeping services is considered more cost-effective, productive, and viable by the majority of businesses, including small businesses.
If you have any queries about business bookkeeping or you are looking for business tips for small business owners, feel free to drop FinAccountants a line.