Outsourced Bookkeeping Benefits Over In-House Bookkeeper
- 1.1 What Is Outsourced Bookkeeping?
- 1.2 Advantages of Outsourced Bookkeeping and Why Is It Better
- 1.3 You Can Expect Higher Quality of Expertise From the Outsourced Bookkeeping Services
- 1.4 Internal Audit for Outsourced Bookkeeping and Accounting
- 1.5 Better Financial Reporting Process in Outsourcing
- 1.6 Outsourced Bookkeeping Costs Lesser Than the In-House
- 1.7 Outsourcing Provide Better Accounting and Bookkeeping Services
- 1.8 Extended Working Hours
- 1.9 Fraud Prevention
- 1.10 No Downtime
- 1.11 Scope of Scaling in the Coming Time
- 1.12 Why Bookkeeping and Accounting Are Essential for Your Business?
Outsourced Bookkeeping Benefits Over In-House Bookkeeper
Are you one of those who do not like to manage their books and are not satisfied with the existing bookkeeper or can't afford to hire a part-timer? Do not worry because outsourced bookkeeping is there for your rescue!
The traditional method i.e. in-house bookkeeping is not ideal for managing a company's financial standing anymore, especially when better and advanced options are out in the market. Outsourced and in-house both have a different flow of managing bookkeeping and accounting.
Many CEOs and small business owners count on in-house bookkeeping and accounting to process their financial statements. Not every business requires outsourced bookkeeping, but those who do it can cost you a smaller amount and develop more expertise than traditional bookkeeping.
What Is Outsourced Bookkeeping?
In the case of a business, it is imperative to get a clear picture of who will handle your books. Are you going to hire a full-time employee or outsource it?
Outsourcing is the practice of hiring an expert or a team of experts outside a company to carry out tasks instead of keeping a full-time worker (bookkeeping in this case).
Businesses generally use this as a cost-cutting measure.
The outsourced could be even more skilled and professional than the full-time one as they undergo constant training.
Advantages of Outsourced Bookkeeping and Why Is It Better
You Can Expect Higher Quality of Expertise From the Outsourced Bookkeeping Services
To get accurate financial transactions promptly, you have to make your accountants, either in-house or outsourced, trained.
When you are working with the outsourced, you are working with a team of experts.
Outsourced bookkeepers generally go on continuous training in accounting and technology.
Whereas in-house bookkeepers could be the ones who taught themselves, which is not always a bad thing; however, you might get into a greater risk of getting an incompetent accountant.
Internal Audit for Outsourced Bookkeeping and Accounting
To ensure an accurate and prompt flow of the information into the accounting system, you regularly perform internal audits.
It also prevents the risk of getting ripped off and maintains balance by providing a series of checks.
There is a greater risk of fraud when barely two people are handling your books; it could be possible that the person reconciling the balance sheets is paying the bills, and lack of differentiation in the duties significant risk of financial slash.
Outsourcing reduces financial slash risk since the separation of responsibilities and more strict steps while providing financial statements.
There are treads for one employee to review others' work to avoid any inconsistency and errors.
Better Financial Reporting Process in Outsourcing
Even if you have an in-house bookkeeper, you don't have to fire them as you can decide what you need for your business and when you need it.
The existing employees can become more efficient while working with the outsourced service by streamlining procedures and best grade policies.
They can consider reporting to an outsourced provider who creates financial reporting for your business.
Trained outsourced employees will provide accurate and prompt reports and focus on the main job.
Outsourced Bookkeeping Costs Lesser Than the In-House
Cost is one of the biggest concerns for small to medium business owners while hiring an accountant or a bookkeeper.
A permanent in-house bookkeeper charges around $45,000 p.a. full-time in-house accountant charges around $60,000 p.a.
Combining both will make a sum of around $100,000. That doesn't even include the overhead costs.
Overhead costs add up to 20% extra to an employee's prop salary.
But your business won't have to pay the overhead costs to the outsourced bookkeeper or accountant.
They charge between $2,500-$5000 a month for small to medium enterprises.
Our monthly bookkeeping fees are much economical as compared to other service providers.
Outsourcing Provide Better Accounting and Bookkeeping Services
Depending upon your business's needs, you can choose the services you want to outsource; for many small to medium companies, it is very cost-effective and much more manageable.
Unlike most outsourced companies, eBetterBooksoffer a team of dedicated experts; we provide the expertise you need to sprint your business, we process our work under strict guidelines in place to prevent the risk of fraud.
Extended Working Hours
A full-time accountant or a bookkeeper works from 9:00 am to 5:00 pm; whenever you need something, they are there to help you out, but once their shift is over, you are left out hanging.
An outsourced bookkeeper will provide you extended hours of his services. It is crucial for the companies where business hours don't bid. Restaurants and bars are the most appropriate example.
Unfortunately, most of the frauds happen in the in-house accounting as the accountant or the bookkeeper takes charge of all the financial transactions leading it to be prone to fraud. They can easily fudge the records and have access to the business's sensitive information; they can also influence other employees to join the scheme.
It can not happen in the case of outsourcing since a team of experts works together for managing the accounts, and there is someone assigned to check if the work done by others is error-free.
If your in-house accountant leaves for some personal reason, maybe a vacation, or perhaps he could be sick, there is no support of an expert on the table for you, but you can not expect the same from the outsourcing service.
If one person leaves for any personal reason, there is always someone else to replace him; there never is a downtime, your work will never suffer in the place where you have hired an outsourced.
Scope of Scaling in the Coming Time
An in-house bookkeeper has a limited time of the day to offer; he might not provide his services. On the contrary, the outsourced bookkeeper offers extended working hours; you can feel relaxed once you know if your business expands, there will be a service provided to you accordingly.
Why Bookkeeping and Accounting Are Essential for Your Business?
Entrepreneurs and small business owners often perceive accounting and bookkeeping as burdensome, but the reality is different; you should never feel annoyed as it is a vital part of the financial lifecycle.
To ensure business growth, you should maintain your financial system's quality, accuracy, and punctuality.
A well built outsourced company could work as an indispensable asset, so you have a strong financial base for your enterprise.
Most people in business can not do their accounting as they don't have formal training in the field; outsourcing could be just the right option for the same.