Outsourced bookkeeping, and other professional services, has been gaining a substantial foothold among today's small business owners. But whether you have been thinking about outsourcing for a while now or are considering it for the very first time, you may find you're reluctant to take the step, especially where your finances are concerned.
Often regarded with indifference, confusion, or even outright fear by many entrepreneurs, the misunderstandings and misconceptions surrounding outsourced services abound.
In this post, we will highlight seven of the most common myths about outsourced bookkeeping services.
7 Common Myths About Outsourced Bookkeeping Services
- Outsourced = Overseas
- Loss Of Control
- Lack Of Affordability
- Security Concerns
- Trust Concerns
- Time Management Concerns
- Do-It-Yourself Software
- Why You Shouldn't Pay Attention To The Above.
1. Outsourced = Overseas
If the first (and only) thing that comes to mind when you hear the word "outsourced" is "overseas", you've already fallen victim to one of the most common myths about outsourcing.
The term "outsource" refers to obtaining goods or services from an outside source, or contracting out work. In no way does it imply that this work need be performed by an offshore entity.
Onshore outsourcing within the United States is a strong industry that lends itself handily to professional sectors like bookkeeping, and it's a service that currently employs hundreds of thousands of Americans in a full-time capacity.
2. Loss Of Control
No entrepreneur wants to entertain the idea of losing control of their hard-won business, and this particular outsourcing misconception preys on one of the small business owner's biggest fears.
The fact is that rather than losing command of your enterprise, offloading your bookkeeping to a professional service provider will give you a much better handle on your company's goals and overall financial position.
By allowing you to make better business decisions, regular access to timely and accurate financial information will keep you firmly in the driver's seat of your cherished enterprise.
3. Lack Of Affordability
When it comes to running a business, time is money.
Rather than looking at outsourced bookkeeping services as just another recurring expense, remember that the time and energy you'll save by letting someone else take care of your books is likely to pay significant dividends elsewhere.
You're in business because you're good at something. Unless that something happens to be bookkeeping, you'll get far more bang for your buck when you spend more of your valuable time doing what you do best.
4. Security Concerns
Because of the confidential nature of a company's accounts, it's only natural for business owners to worry about the security of their financial information when they share their books with an outside bookkeeping company. Especially when the data is stored on the cloud with companies like Hubdoc.
t's essential to keep in mind, however, that no data is technically 100% safe - whether it's online, offline, or jotted down in a notebook.
The security measures employed by established outsourced bookkeeping services are based on the most up-to-date technology available.
Ultimately, the bottom line is that you're as likely to experience a security breach within your own home or office environment, as you are when doing business with a qualified outsourced bookkeeping expert.
5. Trust Concerns
While there's a tendency to believe that no one could possibly care as much about your business as you do, remember that the same applies to the professionals who provide your outsourced assistance.
Many of these individuals are business owners just like you, and they're just as concerned with maintaining the highest level of client service possible, as you are.
These professional contractors have a naturally objective approach, which means that they're far more likely to spot any unusual business activity within your firm and that they'll be better equipped to suggest more effective ways of running your financial affairs.
It's always a balance between advantages and disadvantages. To weigh the two, download your free copy of 9 Benefits Of Small Business Financial Reporting to see how much more the books can be worth to you.
6. Time Management Concerns
Professional outsourced bookkeepers are in business to relieve you of the brunt of your bookkeeping work, freeing up both your time and that of your employees.
Most outsourced bookkeeping services operate electronically, often taking advantage of cloud-based solutions to quickly and conveniently store and exchange financial data and other relevant information between client and service provider.
Today's technology makes it easy for even the least tech-savvy among us to outsource with confidence. By eliminating the need for regular in-house staff, outsourcing your bookkeeping offers complete flexibility, letting you make use of such services as they're needed.
7. Do-It-Yourself Software
There's no denying that bookkeeping tools like QuickBooks are fabulous and relatively easy to use. But just because you've armed yourself with a valuable bookkeeping solution, it doesn't necessarily mean you know how to get the most out of it.
Many small business owners fail to make use of the full potential of their accounting programs, and those who do are probably spending far more of their time keeping the books than they should be.
Furthermore, the more business growth you experience, the more complex your finances are likely to become. Rather than trying to guess at what you're doing, consider relying on experts who have both the time and the advanced skills necessary to keep your finances in order.
8. Why You Shouldn't Pay Attention To The Above
As we continue to work with new clients, we are always identifying unique benefits to outsourcing your bookkeeping.
When you use an outsourced solution, your small business bookkeeping should always be attended to no matter what. There are no sick days, holidays, or vacation days when you outsource your bookkeeping.
Higher Level Employee
Good outsourced bookkeeping experts make money by offering a higher level of service efficiently at a premium price. Overall the business owner should reap the benefits of a higher level part-time employee.
Many small businesses hire a bookkeeper because they think they need one. While it is true that most companies do require a bookkeeper, many do not need a full-time in house bookkeeper.
Most small businesses hire a full-time in house bookkeeper for peace of mind, even though they only had part-time needs. As funds got tighter for small businesses and technology got better, they realized they could acquire a higher level bookkeeper at a lower rate and still meet the needs of their business.
Benefits Of External Contractor
There are a lot of benefits to having an external contractor instead of an internal employee that you may not be considering. The evident benefits are not having to pay a salary or vacation and sick time.
Another thing to consider is that it is much easier to let a contractor go than an employee.
Long-term internal employees often come with emotional ties that make it challenging to make the right decision of letting them go when the right time comes.
With a contractor you may have the emotional tie but hopefully it is not as strong as an internal employee that you see every day. You also won't have to deal with worrying about paying unemployment insurance claims with an outside service as opposed to an employee.
Outsourced bookkeeping services have a lot of benefits that you may not have considered. Ready to hear them all and make the decision that works best for your business? Schedule your free consultation with SLC Bookkeeping today.