In-house bookkeeping is the traditional form of business bookkeeping, but companies are increasingly turning to outsourced bookkeeping solutions because of the advances in technology and a growing economy. While each of the two options comes with pros and cons, we’ve laid out the differences between the two.
Outsourced bookkeeping services often provide higher quality and expertise. Depending on the complexity of your bookkeeping needs, you will be looking for someone who has at least a few years of hands-on relevant experience. One of the biggest challenges for business owners is properly evaluating someone’s bookkeeping skills without having a deep knowledge of bookkeeping themselves. Because training can be one of the most costly expenses for your business, ideally, you would like the candidates to require minimal training and be able to do their job well from the get-go.
Outsourcing helps reduce the risk of fraud. The complexity of the bookkeeping process can make it easy for someone who knows what they’re doing to hide the fraud. Therefore, such fraud goes undetected for several months. Such instances of fraud are far less common when you outsource the work. Since the outsourcing business’s professional reputation relies on their ability to properly and honestly service their clients, it’s completely counterproductive for them to commit fraud or engage in any other illegal activity.
Outsourcing your bookkeeping can help alleviate late, inaccurate, or meaningless financial reporting. An outsourced bookkeeping firm can make sure your books and your financial records are up-to-date and accurate. They can also provide you with valuable consultation and advice as your business continues to grow.
Your business won’t pay overhead costs when using an outsourced service. Business owners can save up to 40% more by outsourcing their bookkeeping. You save on overhead costs that include payroll taxes, health insurance, paid time off, cost of interviewing, hiring, and training, and retirement plans, 401k, etc.
Lastly, in-house bookkeeping might be right for some businesses, however, many businesses find outsourcing their financial needs is easier and more cost effective. Not sure which is right for you? Schedule a call with us today and we can help you find the right solution for your business needs.