The Biggest Myths About Outsourcing Accounting Serivces

The Most Common Myths About Outsourcing Your Accounting Services


The backbone of any company, whether they be large or small is undoubtedly their finances. Being such a crucial part of any business, this is also the biggest cause of concern for any company. Forbes recently published an article that looked at the trends of outsourcing accounting departments and in year 2012 alone, there was over a million dollar increase year over year in outsourcing accounts. Looking at these numbers, there is no doubt that outsourced accounting is here for the long-run.

Those who don’t work in my company don’t know what’s best for it

This is undoubtedly the biggest myth when it comes to outsourcing accounting and bookkeeping. While this outside accounting firm may not be involved in your day-to-day activities, they are likely far more versed in the practice of accounting that you will ever be and furthermore, they also likely have tons of experience in your niche and many others. With this wealth of experience already under their belt, they can already come to the table with a ton to offer. With just a little effort understanding your day to day business strategy, they will likely have your accounting department running smother than ever.

I won’t outsource because that means I won’t have full control over my business.

This is another one of those fears that every business owner has when handing over the keys of their business to someone else. In fact, the Association of Chartered Certified Accountants actually labeled this as the greatest fear CEOs have. While this might sound counterintuitive to most, by handing over you accounting department to an outside firm, you will have much greater control over your company. Let us explain. By not having to worry about the little nit-picky things that often drag you away from really running your business, you will now have all the time in the world to really start paying attention to the things that really matter. By having someone else putting together all of the data for you, you are then just given the full reports to analyze, which allows you to spend less time on the mind-numbing projects and start worrying more about your bottom line. Additionally, by getting a more high-level overview of how your business is running, this will allow you to more easily make executive decisions on the fly and benchmark yourself against other industry leaders.

Outsourcing sounds great, but I just cant afford it.

Yes you can. While most don’t even take the time to fully explore this solution, outsourcing will actually end up costing you less that having to pay a staff of full-time employees. Additionally, the people you are hiring, already have access to the best tools in the market that is already included in the price of admission. When actually broken-out, companies often save over 50% when outsourcing these services. Many don’t think about all the additional cists that are associated with having an internal team which expands far beyond just paying salaries. By outsourcing, you will have more time to pay attention to what matters, gain access to the most advanced technologies and have the brightest brains on your team at just a fraction of the cost of having an internal team.

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Technology And Accounting

Keeping up with technology in the world of accounting

Today, technology is one of the major implications on a business being able to run effectively. Instead of investing in a younger workforce that may be more able and willing to learn how to effectively use today’s software, companies are continually relying on old-school thought and technology. By bringing in younger staff to help alleviate the learning curve of these new programs more quickly, this would allow for the training of other professionals within the organization, which would then lead to an overall up-tick in productivity on all accounts. By doing this, this would also work to save on costs and continue to leverage the use of the expert accounting knowledge of the older professionals without having to invest in outsourced accounting services.

bookkeeping services for small business cost

Using modern-day accounting programs for internal use have a lot of benefits, especially for smaller businesses. In many cases, various templates are constructed, which are specially designed according to particular needs of each business vertical, which usually have unique requirements. Normally, these programs are designed to help take the workload off of business owner who can in turn, utilize their employee’s high skill sets in other ways to help develop more business opportunity. Unfortunately, many of these program’s interface’s have turned out to be a convoluted mess to most, and have business owners actually spending more time that they had previously, working on their accounting books.

How investing in outsourced accounting solutions may be the answer

While most believe this to be he more expensive alternative to in-house accounting programs, because of how difficult many of these programs are to use, most small business owners actually end up saving money going down this route. Hiring external accounting resources allows you to ensure that the job is being done right and that you are not going to have to pay for the job to be done twice. Furthermore, this also then leads to the business owners being able to spend much more time handling other administrative requirements that are essential to the business’s growth plans. Therefore, this leads to ensuring that your accounting services are kept up-to-date and that you other items that you need to keep running are also kept up-to-date without having to hire anyone else.

A blend of technology and external resources

Another option to integrating your accounting department is go for a hybrid approach, which is a blend of technology and outsourcing you accounting department. Again, as we pointed out with the accounting softwares, the user friendlyness of their design is typically, the downfall of this route. By turning to a web-based company for these types of services, you typically bypass the user experience issues and still benefit from having outside professionals managing your accounts. Historically, because websites were expensive to build, this was a costly move. But with the advancement of the latest website building technology, these services have gotten much easier and cheaper to use, which benefits you. Now because of this, the presence of online accounting and bookkeeping companies are blowing up. Below are some of the primary advantages of online accounting and bookkeeping:

  • Speedy
  • Saves more time and energy
  • Cheaper than hiring more people
  • Hire a online dedicated account
  • Excellent communication facility on 24/7 through voice or text

 

Some final thoughts

Again, being able to make accurate executive decisions means that you need the time to actually make these decisions. Nowadays, many business owners are turning to a variety of accounting and bookkeeping services to reduce their internal requirements to meet these goals. In the case you are looking to do the same with your business. Consider the potential of a hybrid approach, which would allow you to have control over your accounts through an easy-to-use online platform, but still have the reassurance of a highly skilled professional keeping your books up to date.