For small and medium-sized institutions or organizations having an internal bookkeeping unit or department is simply exorbitant and that is why a lot of organizations opt for outsourced bookkeeping services.
Nevertheless, a lot of companies and business owners prefer not to outsource bookkeeping because of some common myths or misconceptions about the same. They are primarily unaware of the benefits of outsourcing their bookkeeping and believe in the those myths.
A lot of misconceptions or myths about outsourced bookkeeping services can potentially trouble the owners of companies or self-employed individuals. These company owners become doubtful of their services and handle their accounts by themselves (which should be managed by professionals).
Source: Outsourced bookkeeping services can increase the productivity of your business
Let us have a look at some of the myths and misconceptions regarding outsourcing of bookkeeping services which in turn becomes an obstacle that resists the company from reaching its full potential.
List of common myths regarding outsourcing bookkeeping services
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Small businesses and company owners believe you should opt for outsourced bookkeeping services only when the tax season arrives. Although it is definitely true that bookkeeping and accounting are formidable during the tax season, it is not the only time as a company owner you should take the help of outsourced bookkeeping services.
You should equally take care of your financial transactions and accounts at any time of the year and it should be managed by a professional (for example an outsourced bookkeeping service provider). You also need to make sure that your accounts are up to date regularly. All of this will help you reduce multiple risks, file taxes on time, and increase your company’s opportunity to grow.
Trustworthiness is another myth about outsourced bookkeeping services. A lot of company owners think that it is unsafe to outsource bookkeeping services because you cannot and should not trust any third party or outsider with important company-related information such as financial transactions and other confidential information.
However, you can completely trust the bookkeeping service provider as the owner of the business or company because they are reputed industry professionals who have been providing the services to other companies for a long time. Furthermore, they also are adept at managing your account files and transactions with maximum confidentiality.
A lot of business owners and self-employed individuals think that they can manage the bookkeeping services by themselves due to their business being smaller in size. Yet, the notion here is false because without proper and flawless bookkeeping, evaluating the company’s exact revenue will become challenging.
Moreover, every business (be it big or small) requires a proper accounting system and you can easily outsource your company’s bookkeeping services to flawlessly record and update each and every transaction related to your business. Furthermore, by outsourcing your bookkeeping you will be able to efficiently meet your tax obligations.
A common outsourced bookkeeping services myth is that a lot of business owners believe outsourcing bookkeeping services will cost them a huge amount of money which will be beyond their actual budget. This is one of the primary reasons business owners do not like outsourcing their bookkeeping and end up managing it on their own.
However, these business owners forget the importance of time, which is more valuable than money. As an owner of a business or company if you outsource your bookkeeping services then you will be able to focus more on your business. The time and energy you save on bookkeeping can be utilized by coming up with brand new and innovative ideas which will help to receive more profits for your business.
Furthermore, you will get more time to approach new clients and grow your business simultaneously. Outsourcing the bookkeeping services is the best option for companies that do not have the resources to create their own accounting department. For example, if you employ a part-time or full-time employee for bookkeeping then you may have to pay between $2500 - $4000 per month whereas you can get the bookkeeping job done through outsourcing by paying between $500 - $2500.
At the same time, the companies won’t have to worry about payroll taxes because through outsourcing the companies are only required to pay for the specific services chosen by themselves.
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A lot of company and startup owners believe in the myths about outsourced bookkeeping services. Among these myths and misconceptions, a prominent one is that the bookkeeping service cannot provide all the facilities and that is why they need to hire an in-house accountant.
This particular notion is not true because in reality bookkeeping services provide their services with multiple options so that business owners can completely focus on their business and develop themselves. Furthermore, a lot of bookkeeping service providers offer unique end-to-end customer support for their clients.
Another common and prominent myth about outsourced bookkeeping services is that - ‘Only large businesses can opt for outsourced bookkeeping services’. A lot of misinformation or the absence of proper information has led to this myth being popular among entrepreneurs and small business owners.
An important part of outsourcing bookkeeping services includes helping startups and small business owners so that they can completely focus on their businesses. A lot of times small businesses and startups find it frustrating and difficult to manage everything on their own and that is why outsourced bookkeeping services are a more efficient option for them.
Although outsourcing bookkeeping companies do serve large companies because of their efficiency and productivity, they are also apt for small and medium-sized businesses. Furthermore, if you have just started a company or are relatively new to a particular industry then as a business owner you will be able to learn a lot while working together with a bookkeeping service provider.
For example, if you are running a start-up business then you can know how to better manage your costs and how to accomplish the breakeven point in the very first month of a project. Through outsourcing, you can also make better strategic decisions, increase the productivity of your company, improve your overall operations and products, etc.
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Another very popular myth about outsourced bookkeeping services is directly related to the company’s financial and accounting security. A lot of company owners think that outsourcing bookkeeping services are not secure and that is why they avoid opting for their services.
Small business owners and self-employed individuals are afraid of sharing their financial information and data with third parties. However, you would definitely be surprised to know that the bookkeeping service providers offer the best security measures for all the bookkeeping data.
Moreover, the level of security provided by bookkeeping companies is better than the respective businesses. The advanced security measures and tools used by professional bookkeeping companies are second to none and they also have in-depth proficiency in data security.
All financial documents handled by professional bookkeeping companies have the highest security measure and to search for any data breach they perform audits on them regularly.
Among outsourced bookkeeping services myths, Outsourcing is not a long-term business solution is a popular one. Company owners and entrepreneurs think that outsourcing bookkeeping will not be able to provide enough value in the long run and that is why they do not prefer using outsourced bookkeeping services.
However, a long-term partnership between both the company and an outsourced bookkeeping service provider can offer a lot of advantages for both parties. The bookkeeping service provider can increase their quality of services and as an owner of the business, you will be able to receive multiple strategic services such as financial consultancy, enterprise resources planning, etc.
As a small business or company owner, you may think that you are losing visibility and control over your company activities by outsourcing the bookkeeping services. It also comes under the popular outsourced bookkeeping services myths but honestly, the whole statement is absolutely false.
By outsourcing the bookkeeping part of your business you certainly will not lose your authority over the accounts part of your business, instead, your company’s bookkeeping and accounting records will become more organized and you will have better visibility over your finances.
While offering bookkeeping services, service providers are extremely cautious about the client’s role and they also provide regular updates and records of all the activities related to the company. As a company owner, you will receive the reports daily, monthly and quarterly. This can also help you make the right decisions at the right time.
Furthermore, with the help of expert guidance as a business owner, you will be able to learn more about your business while putting your valuable time and resources into further developing your business. Outsourcing is a proven and excellent business strategy that can help you understand and evaluate the proper financial circumstances of your business.