Many business owners hesitate to outsource their bookkeeping for a number of reasons.
See also Outsourced Accounting/Bookkeeping
First, entrepreneurs are notorious for their DIY mentality, so handing over their company’s financial reigns to an “outsider” can be daunting. In addition, they may have some fears based on things they’ve heard from those who have outsourced to the wrong person or company. These fears are often unfounded, especially when you choose to outsource your bookkeeping to a certified expert. Hanson & Co., has provided key information to help dispel some common outsourced accounting myths.
Outsourcing is expensive. The fact is you’re more likely to save money. Instead of either hiring someone and paying wages and benefits – including insurance, payroll taxes, unemployment taxes, paid time-off, etc. – or spending your valuable time on it instead of marketing, selling, networking, and otherwise growing and bettering your business, you pay only for the time you need from a staff focused solely on your financials. Most outsourcing can be done on a fixed fee basis as well to help you plan for and control the costs involved. And, if you need more or less accounting time as your business grows or with seasonality, outsourcing allows you to easily scale as necessary to account for only the volume and complexity required. Also consider that the cost of properly setting your books up and maintaining them monthly is far more cost effective than having your CPA correct them at year-end.
I’m going to lose control of my company’s finances. Your business is your baby, so this can be a significant fear. Instead, think about outsourcing your bookkeeping as a way to get a tighter rein on your company. Once maintaining the books is off of your day-to-day plate, you have the time to focus on other important tasks needed to manage your business. You would still maintain control of all decisions, approve all invoices for payment, and sign all checks with full visibility to your finances. In addition, with proper bookkeeping support, you’ll benefit from accurate and useful reporting that will help you make better-informed business decisions.
My books are automatically sent overseas. “Outsourcing” doesn’t always equal “overseas.” While there are a number of companies that provide outsourced bookkeeping and other services overseas, the same is not true of all companies. Do your research to find the one that is right for your business needs.
I have to choose between outsourcing my books and my CPA. Sometimes you can get the best of both! You may choose to engage the same company but use them at different times for specific roles. An outsourced bookkeeper can do the mundane day-to-day tasks, such as submitting invoices and following up on them, paying the bills, and making sure new employees file all the right paperwork – all within the appropriate deadlines. They can also track company expenses and be sure they are entered and recorded correctly. This ensures that your business financial records are ready for your CPA at tax time. When these two functions exist within the same company, it can be that much easier to communicate with your accounting team and get the best financial and tax planning advice.
While it can be difficult to outsource the company’s accounting services and give up some control, it’s important to understand the high level of benefits that can be realized. If your company is considering outsourcing the accounting function, then Hanson & Co is here to help. For additional information please call us at (303) 388-1010, or click here to contact us. We look forward to speaking with you soon!