Expertise, Processes, Accurate Financial Reporting in Bookkeeping. If you have all these in place you may not need to outsource your bookkeeping.
Professional Outsourced Bookkeeping, Do You Need It?
How to decide whether to outsource your bookkeeping can be a difficult decision. Here are three top reasons NOT to outsource your bookkeeping and or accounting functions.
#1 You Have the Expertise to Perform Your Own Bookkeeping
You have the expertise in-house to create accurate and on-time financials. Financials that enable you to manage your small business efficiently and create growth. You know how to provide your CPA with exactly the right data so that your company pays the lowest taxes possible.
You do not waste time trying to understand your financials. You are fully conversant with accounting software such as QuickBooks and know how to make use of its advanced features? You have a solid business dashboard that presents the key indicators that let you know exactly how profitable you are and that let you make decisions quickly.
#2 You Have Solid Bookkeeping Processes in Place That Are Consistently Followed
You should not outsource your bookkeeping if…
You are confident that you are not losing revenue due to erratically managed accounts receivable processes. Your customers consistently pay on time and in full. No accounts receivables are outstanding.
You are not missing out on discounts or being hit with late payment charges due to late incoming payments. Your credit status with your suppliers is never at risk due to late-paying customers. You do not suffer from late nights and frustration keeping on top of your accounts receivables.
Poor accounting is not something anyone is likely to associate with your small business.
# 3 You Have Inciteful and Accurate Financial Reporting
You should not outsource your bookkeeping if…
You have a solid understanding of the financial position of your company. This includes net income or loss. You are definitely not blindly driving your business. You understand the critical nature of financial reports in your small business and what to do with them.
You ensure your business’s financial statements are accurately prepared. You avoid under calculating spending and over calculating profits in the same way a qualified accountant will. You have controls in place to prevent costly mistakes that can jeopardize a company’s survival.
Bonus Reasons to NOT Outsource Your Bookkeeping
You Understand and Make Use of Appropriate Bookkeeping Technologies and Integrations
You should not outsource your bookkeeping if…
You understand the efficiency benefits of integrating applications with your bookkeeping software. You are on top of sophisticated accounting processes such as job costing and sales commission calculations that can be integrated from CRM and expense applications. You have seen these integrations free up staff to focus on sales. You can identify your reduced outsourced accounting costs due to having eliminated many manually re-keyed transactions.
Personnel Turnover, Scalability, Confidentiality
You should not outsource your bookkeeping if…
You know you are not at risk of having to carry an in-house staff due to a sudden drop in revenue. Although you have an in-house accountant, you are not at risk of having to lay off or unnecessarily keep them on the payroll if you experience a sudden drop in revenue (even if temporary).
You can scale up and or scale down your business’s bookkeeping processes and costs without impacting the personnel directly employed by you. You have no problem maintaining an office with employees, their computer equipment as well as someone knowledgeable in technology to maintain them.
You have the time and inclination to qualify, manage and train bookkeeping staff. You have the peace of mind that comes with knowing your bookkeeper is experienced, honest, and treats all your financials with the highest confidence.
Professional Outsourced Bookkeeping? Yes or No?
If all the above reasons NOT to outsource your bookkeeping do not apply to you, maybe you should consider professionalizing your business with an advanced and outsourced bookkeeper.
Call Columbus Bookkeeping & Accounting Services (614) 205-5676 or complete our Bookkeeping Services Free Quote contact form.
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