The four stages any entrepreneur goes through   

The four stages any entrepreneur goes through   

Running a business is not something easy to do and while some people manage to succeed although they do not have a lot of experience, others may fail even if they are More »

Steps to starting a small business

Steps to starting a small business

If you are interested in setting up your own business, then there are a few important steps to follow in the process. Because the business world is highly competitive, it is more More »

Keeping your social media fans engaged – how to attract new followers

Keeping your social media fans engaged – how to attract new followers

Considering that social media marketing is more popular than ever and can have a very important influence on the success of a company, managers will need to always be careful with their More »

 

Is outsourcing bookkeeping a good idea?

No matter what type of business you may own, bookkeeping is something that every manager has to deal with. While for some businesses this entails work for one person, larger companies need an entire bookkeeping department in order to cope with all their demands. To this extent, if you are not sure whether or not you should outsource your bookkeeping services, here are the main advantages of doing so:

 

Financial savings

Even though it could seem that hiring a dedicated company might be more expensive than hiring one person, the fact is that you would be paying a full-time employee to do something that a dedicated company can do in half the time and at a far more advantageous price. In addition, aside from the actual salary, you would also save a lot of expenses that are associated with hiring someone such as benefits, unemployment taxes, insurance as well as other investments such as accounting software, office furniture and many others.

 

Contractual obligation

Outside service providers are much more liable than in-house staff, making them more likely to follow through with their obligations. In addition, it is much easier to hire a service provider rather than deal with the entire process involved by hiring a full-time employee, not to mention that it is much easier to switch the provider, as opposed to letting someone go and hiring someone else.

 

Expert services

A professional bookkeeping company will have a team of experts working there, so in case someone needs help, there will always be someone else to pass the task to. When you only have one person in your accounting department, they are more prone to making mistakes. However, when you hire a third-party service provider, you can always have the peace of mind that your accounting is handled well.

 

Are there any drawbacks?

Even though there are a lot of advantages to this option, it also has a few drawbacks the main one being that there will always be a time distance between you and your provider. You will never get the same response you would from someone who is physically in your office, but considering the financial advantages this should not be something very significant. Another drawback could be the potential time difference if the company you hired to do your bookkeeping is in a different time zone.

 

All in all, there are many specialists that advise entrepreneurs and small businesses to outsource their bookkeeping services because they could save a lot of money in the process and receive expert services from highly experienced professionals. Bookkeeping certainly is a very important part of any business, one that no manager can overlook and with the help of a team of experts by their side, this will not pose any problems.