Outsourced Bookkeeping Services: Pros and Cons

Small businesses are increasingly turning to outsourced bookkeeping, payroll, and office administration. Outsourced business services have been popular with large corporations, and smaller businesses are now beginning to use them.

Remote access and a UK bookkeeping team are available to business owners. This team is made up of experts who can help run their business more efficiently, make it grow faster and earn more money. Locally outsourced bookkeeping and business services are also less expensive and come with lower risk than hiring an in-house bookkeeper.

When Should You Outsource Your Work?

Many business owners manage their own bookkeeping requirements with the help of a bookkeeping checklist. This helps to cut costs. Bookkeeping becomes more complicated and time-consuming as businesses grow and their financial data requirements increase.

The ATO can be contacted by the owner of the business due to non-compliance issues.

Is it time to outsource bookkeeping?

Ask yourself these questions.

• Do you have any doubts about the accuracy of financial data in your business?
• Are you unsure if you’re keeping proper financial records?
• Is tax season a nightmare now?
• Do you find yourself overwhelmed by business transactions and invoices that are affecting your core work?
• Do you have any doubts about the profitability of your company?
• If you answered yes to any of these questions, it is time to hire an expert to help your business grow.

Outsourcing: pros 

It is important to weigh the pros and cons of  bookkeeping outsourcing.   This will help you make an informed decision.

Enables transformation, for example moving bookkeeping and key business processes into the cloud as well as implementing more streamline processes. Outsourcing is also used by businesses to improve their business results and drive transformational changes.

Outsourcing is a way to reduce risk and build resilience.

Cost Effective

Outsourcing your bookkeeping is less expensive and riskier than hiring a bookkeeper in-house to manage the accounts. Outsourcing eliminates the overhead costs of an employee, including Super, annual leave and health insurance. You also avoid sick pay, workers’ compensation, vacation, sick time, and other benefits. A single person may not be able to answer complex/advanced bookkeeping questions, but an outsourced team can provide you with the best solution.

A Proactive Approach

You didn’t become a businessman to be a financial expert who lives by the numbers. You want to grow your business and serve your customers in order to achieve your desired lifestyle. Hiring an external firm to do your bookkeeping ensures any red flags, such as cash flow problems and excessive spending, are identified in advance. You can have peace of mind knowing that your financial data is being handled by experts.

Reduced Fraud

When a small or medium-sized business owner allows a single individual to control their books, fraud is an issue. Small transactions are easily overlooked and books can be manipulated for years to make them appear normal. Even if your relationship with employees is strong, it’s not wise to blindly trust them. It can lead to a false sense that everything will be fine.

By outsourcing your bookkeeping, you can reduce the risk of fraud by having multiple eyes monitor transactions.

Training

To ensure compliance and best practice, bookkeeping firms must stay current with the latest tax laws and government regulations. This is crucial for business owners, as they want to make sure their books are being managed according to the ATO regulations, even when these regulations are updated. You can have peace of mind by working with a bookkeeping service.

Outsourcing:cons 

Hidden Costs

Additional costs are a concern when a job is more complicated than expected, resulting in unexpected costs. Talking to your bookkeeper is the best way to set expectations and understand what work will be involved.

 Less Control

You can’t just walk in and ask how your finances are doing. You’ll need to arrange a conference call or a meeting, which means updates won’t be instant. It can be intimidating for many business owners to outsource their financial data. Do your research and consult with a trustworthy partner before you make a decision.

Not local

Many overseas business and bookkeeping service providers are located overseas. They might also have a poor understanding of GST, payroll, superannuation and other requirements. Communicating and getting your financial data explained by overseas agencies can be difficult. You should carefully consider whether outsourcing overseas is a good long-term strategy. Hiring an Australian Outsourced Team is a better and more risk-free option.

Key Admin Is Your Financial Team

At Finex, we have provided peace of mind, efficiency, and financial data to many small and medium-sized companies, enabling them to make informed decisions.