Seven Myths About Outsourced Bookkeeping
Many people are hesitant to consider outsourced bookkeeping. This is largely due to misconceptions about what outsourced bookkeeping can mean for your business. One thing business owners should consider concerning outsourcing is the Pareto Principle, also know as the ’80/20′ rule. The specific numbers 80 and 20 are a generalization, a way to demonstrate the concept. The point of the principle is that a majority of results come from a minority of causes. In most businesses, “80%” of the success of the business results from a smaller “20%” put into the business. Many business owners get bogged down with the management and operation of their business, spending time on things like accounting, HR, and other areas that are not their strength. An efficient business should be outsourcing those tasks to skilled professionals who are going to perform those functions faster and with fewer errors. This will not only save time and money in the long term, but also allow the business owner and their staff to focus on what they do best, the “20%” of their business that creates growth.
See below for common myths about outsourcing your bookkeeping.
1. Outsourced = Overseas
If the first (and only) thing that comes to mind when you hear the word “outsourced” is “overseas”, you’ve already fallen victim to one of the most common myths about outsourcing. The term “outsource” simply refers to obtaining goods or services from an outside source, or contracting out work. In no way does it imply that this work need be performed by an offshore entity. Onshore outsourcing within the United States is an emerging industry that lends itself handily to professional sectors like business accounting, and it’s a service that currently employs hundreds of thousands of Americans in a full-time capacity.
2. Loss of Control
No entrepreneur wants to entertain the idea of losing control of their hard-won business, and this particular outsourcing misconception preys on one of the small business owner’s biggest fears. The fact is that rather than losing command of your enterprise, offloading your bookkeeping to a professional service provider will actually give you a much better handle on your company’s goals and overall financial position. By allowing you to make better business decisions, regular access to timely and accurate accounting information will keep you firmly in the driver’s seat of your cherished enterprise.
3. Lack of Affordability
When it comes to running a business, time is money. Rather than looking at outsourced bookkeeping services as just another recurring expense, remember that the time and energy you’ll save by letting someone else take care of your books is likely to pay significant dividends elsewhere. You’re in business because you’re good at something. Unless that something happens to be bookkeeping, you’ll get far more bang for your buck when you spend more of your valuable time doing what you do best.
4. Security Concerns
Because of the confidential nature of a company’s accounts, it’s only natural for business owners to worry about the security of their financial information when they share their books with an outside accounting company. Especially when the information is stored on the cloud with companies like Hubdoc. It’s important to keep in mind, however, that no data is technically 100% safe – whether it’s online, offline, or jotted down in a notebook. The security measures employed by established accounting services are based on the most up-to-date technology available, and the bottom line is that you’re as likely to experience a security breach within your own home or office environment, as you are when doing business with a qualified outsourced bookkeeper.
5. Trust Concerns
While there’s a tendency to believe that no one could possibly care as much about your business as you do, remember that the same applies to the professionals who provide your outsourced assistance. Many of these individuals are business owners just like you, and they’re just as concerned with maintaining the highest level of client service possible, as you are. At the same time, the naturally objective approach taken by these professional contractors means that they’re far more likely to spot any unusual business activity within your firm, and that they’ll be better equipped to suggest more effective ways of running your financial affairs.
It’s always a balance between advantages and disadvantages.
6. Time Management Concerns
Professional outsourced bookkeepers are in business to relieve you of the brunt of your bookkeeping work, freeing up both your time and that of your employees. Most outside bookkeeping services operate electronically, often taking advantage of cloud-based solutions to quickly and conveniently store and exchange financial data and other relevant information between client and service provider. Today’s technology makes it easy for even the least tech-savvy among us to outsource with confidence. And by eliminating the need for regular in-house staff, outsourcing your bookkeeping offers complete flexibility, letting you make use of such services as they’re needed.
7. Do-it-Yourself Software
There’s no denying that QuickBooks is a great bookkeeping tool. But just because you’ve armed yourself with a valuable software program, it doesn’t necessarily mean you know how to get the most out of it. Many small business owners fail to make use of the full potential of their accounting programs, and those who do are probably spending far more of their time keeping the books than they should be. The more business growth you experience, the more complex your finances are likely to become. Rather than trying to guess at what you’re doing, consider relying on experts who have both the time and the advanced skills necessary to keep your finances in order.