Misconceptions About Outsourced Bookkeeping

Small and Medium-sized business owners are becoming increasingly wary of the costs of internal bookkeeping. Therefore, some of these businesses have decided to outsource bookkeeping services among other accounting-related services.

However, a sizable number of business owners are still not willing to outsource. It is mainly due to lack of adequate information, or they are victims of false information regarding outsourced bookkeeping.

If you are a business owner, what prevents you from taking the leap and outsourcing your bookkeeping needs? Are you concerned about the security of your finances or you are just a captive false beliefs about the trade?

In this article, we want to explore the common fallacies about outsourced bookkeeping that might be preventing you, as a business owner, from taking that step.

Perhaps the most common myth about ‘outsourcing’ as a word is its synonymy with overseas. Quite many business people hold the belief that to outsource services would mean to contract another business that is not within the country.

This idea makes it extremely difficult to have faith in these foreign companies handling businesses finances.

However, this notion of equating outsourcing with overseas is preposterous and should not hold as it prevents you as a business owner from accessing quality bookkeeping services.

The truth is that outsourcing means merely acquiring services from a source not within your own business. It could be the business in the next building, or right down the block, or on the other side of town or within the country.

Therefore, outsourcing can efficiently be done onshore without having to go overseas.

The next time you are considering to outsource bookkeeping services, bear in mind that there are a lot of accounting firms within your city or in the country that can do an excellent job for you.

Are you a small business owner? Your worst fear is probably the loss of control of your business because you put a lot of financial and time resources in it, right?

I know the notion of outsourcing does very little to quell such fears because it would involve surrendering crucial business information to an outsider. While your concerns are understandable, I assure you that they are entirely baseless.

Contrary to beliefs, outsourcing is an excellent strategy for taking full control of the business. By bringing in the third eye to scrutinize your books, you expose yourself to the precise position of your business.

Therefore, you become better equipped to reconcile the business goals and strategies to improve your operations and financial management for an accelerated growth of your business.

Furthermore, an outsourced professional bookkeeping service provider will always ensure a regular and timely delivery of reports. As such, you will also become timely in making critical business decisions that depend on the bookkeeping records. Doesn’t this scenario place the control of the business firmly in your hands?

Yes, it does.

Another common misconception of outsourcing bookkeeping services is the high costs involved. One thing that most business people seem to forget is that time is of almost equal worth to the money the business makes. As a business person, what would you do with more business time on your hands?

Come up with more and better ideas to improve your operations and generate more profits right? It is precisely what outsourcing bookkeeping services gives the business.

Outsourcing takes from you and the company a lot of pressure regarding time and the energy that might have been spent if done in-house. Therefore, you will have at your disposal more time and energy to carry out other activities involved in the business.

Business data security is a legitimate concern for businesses especially if you are considering outsourcing bookkeeping services. Therefore, given that a business accounts are highly confidential, it is only natural that you as a business owner would cast aspersions to the prospect of sharing this information with a third party entity.

I’ll have you know that, however, no data is ever really wholly safe the world over. From the little notes you scribble down in your notebook, to the hundreds of files you store on your drive or data kept in the large servers of big corporations, susceptibility to a data breach is measurable.

However, the truth of the matter is that professional accounting firms from which you can outsource bookkeeping services employ the latest hi-tech data protection technologies.

It is in tandem with the sensitivity of the information held within the bookkeeping recordings of business. Therefore, statistically and logically, a data breach is likely to occur within your business or home as opposed to the professional accounting firm to which you have outsourced bookkeeping services. Are you still having second thoughts about outsourced bookkeeping?

Many entrepreneurs have fallen to the above misconceptions about outsourced bookkeeping. As a result, they have regarded it with a high degree of skepticism and as such have failed to grasp the extent of benefits that would stand to achieve from it.

These suspicions are unfounded and must be handled with the complete disregard that they deserve. Even though it is natural to have reservations about the prospect of sharing vital bookkeeping records with a third party, the benefits accrued far outweigh the risks involved.

Therefore, in attempting to address the most common misconceptions about outsourced bookkeeping, I hope I have given you reasons to take the risk and drive your business to another level.