Outsourced Accounting & Bookkeeping; Authenticate Your Thoughts with Facts
Posted by: Dr. Devaansh | Posted on: February 10th, 2017
There is nothing wrong in conceptualizing about some activity that you are about to do. It proves that you as an individual or executioner have that tendency to foreseeing things. But there are chances that your conceptions turn out to be misconceptions; if you actively don’t keep on authenticating them with available facts and figures. Same is the scenario if we talk about outsourcing accounting services for small and medium size businesses, aka SMBs. The sphere of businesses have evolved like anything, but unfortunately owners to these SMBs still have certain misbeliefs about outsourcing accounting services for small business.
Let’s check out a few of the points which need authentication of thoughts with facts when it comes to outsourcing accounting services for SMBs:
1. Outsourcing accounting & bookkeeping is too expensive; isn’t it?
Small businesses and business owners often believe that outsourcing accounting services would be far off from being affordable, and hence; take a back step. Authenticate this thought with facts; businesses have the convenience to pay these service providers on hourly basis – payment only for hours they were devoted to your accounting tasks. Now this is really economical which makes outsourcing accounting and bookkeeping a sensible decision.
2. Outsourcing accounting services!!! We are SMBs…it is not for us
Nothing wrong if we say that it is a myth that outsourcing accounting services is for large businesses. In fact the concept of outsourcing was initiated with small businesses, as they were the ones who were not able to manage everything-every time. The second most important fact is that 40%-60% of accounting service provider have small businesses as their big customer base and, large businesses form their small customer base.
3. Upon outsourcing accounting & bookkeeping, it becomes really complicated to handle
When it comes to outsourcing accounting services for small business, owners get skeptical and think it really challenging to handle the complex process that needs to be handled for getting the tasks done. Some of the activities or tasks include; sending and receiving files, readiness of required reports, queries on calculations and many more. But these all are really not that difficult. The third party outsourcing service provider has years of experience and full-fledged back office set up and infrastructure of software, systems and manpower in place to assist their clients at every step.
4. Outsourcing accounting and bookkeeping is like trusting an outsider
Trusting an outsider with delicate matters such as transaction of money, company’s facts and figures and other confidential information; is a difficult task. The point is agreeable. But what needs to be understood here is that if outsourced accounting and bookkeeping service providers were not that trustworthy, they would not have sustained and grown in this line of business. They are in existence since more than 25 years now and have grown ever since. Not to forget that accounting service providers are a brainy bunch of professionals who very well know how to take care of confidential files and with utmost secrecy. On top of it they also sign a NDA-non disclosure agreement with businesses at the time of inception.
5. Businesses tend to lose control upon outsourcing accounting services
Upon outsourcing accounting services for small businesses you do not lose control over the accounting affairs of your venture. Most business owners think that when they outsource accounting, gradually the entire activity would shift to the service provider, taking them as owners in dark about the tasks going on in the organization. However; it is noteworthy that these outsourcing professionals have a very stringent and diligent process of reporting on daily, monthly and quarterly basis – to keep their clients updated about the happenings in the organization.
6. Time management is not paid due heed
Entrepreneurs have a concern that upon outsourcing accounting services for their small and medium size business, if in case the service provider is working in a different time zone, it might get really difficult for them to keep in touch with them and scan around the activities that are pending. The entrepreneurs should update themselves that these outsourcing service providers now work 24*7 to ensure that the work gets accomplished conveniently within the stipulated time frame. If an entrepreneur from USA outsources the firm’s accounting activities to an Indian service provider; chances are that Indian firm works at a time when it is night in USA.
But this mismatch works to entrepreneur’s advantage. What will happen is that the work assigned to these outsourced service providers in India would finish it off in their day time, which is entrepreneur’s night time; so next day when he reaches the office the work is very well ready for inspection and ready to use.
7. When accounting software manages accounting, why outsource?
Quickbooks and software alike are not adequate to manage accounting single handedly. Accounting of businesses, small – big or medium, needs a lot of precision and excellence. Taking up software for the company will not help you attain the intentions and you might end up in a major blunder. It is high time we accept the fact that Outsourcing Accounting & Bookkeeping Helps You to stay in IRS Good Books. Therefore outsourcing accounting services for small businesses is forever a better idea.
8. By outsourcing accounting and bookkeeping services you get an outsourced accountant, that’s it
This is a completely erroneous thought process. Entrepreneurs are in a notion that even though after outsourcing the accounting and bookkeeping services, they still would need to have an in-house accountant so as to manage the show with these service providers. However; this is not even near the truth. These financial service providers extend end to end support to their clients; ensuring entrepreneurs don’t need to put in any efforts or manpower.
9. You don’t find good accounting outsourcing service providers easily, who fit in requirements of a small business
Looking out for outsourcing service providers for your business, which fits all your requirements, should be a tough task at all if you as an entrepreneur have done your homework. You should be clear in your thought process about the size of your company, the kind of volume or task you wish to outsource, the number of hours you want the virtual accountants to devote to your task and of course the budget you are ready to spend. Fix your ground rules and you are set to rock and roll.
It is really unfortunate that there still are business owners who are hesitant about outsourcing accounting and bookkeeping services, and spend most of their productive time, dealing with the complexities of accounting & bookkeeping on their own. The time they could have spent taking their venture on a smooth drive backed with proficiency and guidance from experts at accounting and bookkeeping, they wasted their valuable time, energy and resources in overseeing those basic accounting procedures.