One of the most tedious parts of running your own local business is handling the accounting and bookkeeping duties for the business. Keeping track of spreadsheets, expenses, invoices and the like pull the average business owner away from what they do best. For this reason, many businesses choose to outsource their bookkeeping and accounting duties. Is this something you should consider for your local business?
There can be many pros to outsourcing any business administrative function like accounting, marketing or human resources. When it comes to bookkeeping, the pros are pretty obvious.
Above all, business owners report having less stress when their accounting functions are outsource. They have more time to focus on the big picture of their business rather than small daily details. This benefit is true no matter the business type – attorneys, medical practices, auto shops, etc.
It Shouldn’t Be A Full Time Job
For the average small business, accounting is not a full time job and you wouldn’t want to hire someone to handle it in-house. With a remote bookkeeping service provider like Busy Bee Advisors of Sacramento, they handle however much time it takes to manage your books. This of course leads to an obvious cost benefit.
Anytime a business owner outsources an administrative function, they are guaranteed to save money. Hiring an employee with benefits and a salary adds an immense cost to a business’s bottomline that they can avoid by outsourcing.
With the pros of outsourced bookkeeping come the cons as well. Just like any great idea, it’s important for business owners to evaluate both sides.
Lack of Control
When a business owner hands their books over to a 3rd party accounting service, they are effectively giving up control of that portion of the business. This can be relieving for some businesses or it can be a provider of stress. If you choose to hire a bookkeeping service, be prepared to give up some control of your accounting.
Getting Started with a Bookkeeper
Getting started with any 3rd party service provider is one of the toughest parts. You have to onboard all of your information, ensure your account knows your business front and back and reviews your existing accounting system. This process can take months before everything is properly prepared and functioning smoothly.
Even though a local business owner will save money by outsourcing accounting, they will also be expected to pay a monthly fee. And depending on how many transactions your business has, this fee can be quite large. It’s still much less than hiring someone in-house, but it may give some business owners a bit of sticker shock.
What Is Right For You?
At the end of the day, the most important thing for you to do is evaluate your business needs. If you have reached a point where you can’t keep up on your accounting, maybe it’s best to try outsourcing it. Conversely, if the cost of outsourcing your bookkeeping outweighs the benefit, hold off and reconsider it down the road.