Bookkeeping is a very essential function for every business, whether it is a start-up, small or medium-sized, or an accounting firm. Accurate books of accounts and financial documents help in efficiently managing the business and driving it towards growth. There are two ways to get there. In-house bookkeeping and outsourced bookkeeping wherein in-house means hiring bookkeepers as employees who work in the company and outsourcing refers to delegating the services to a third party.
In-house and outsourced services offer different workflows when managing the bookkeeping for your company. Many small and medium-sized businesses usually find it difficult to choose between in-house staff and outsourcing for their bookkeeping. Let us read through some of the usual issues faced by companies who hire in-house bookkeepers and how they can overcome the same when they outsource their bookkeeping to an accounting firm.
The recruitment process demands a lot of time and effort. It could be very bustling to move through the process of interviewing the candidates and then training them according to the software and procedures of the company.
On the other hand, when you choose an outsourced group of experts, you don’t have to worry about hiring and training, they already have proven manpower and systems in place. This will escalate productivity and time-efficiency.
Hiring a bookkeeper or an accountant as an employee is not only about the amount you pay as salary but also about added benefits. You will get burdened with insurance coverage, sick leaves, holiday pay, ongoing training costs, perks, pension, office space rent, office equipment, and more.
When you will compare these costs with outsourced bookkeepers, you will get to know that outsourcing is much affordable. You don’t require to pay any other expenses besides the fee for the services that you hire them for. This saves you precious pounds as you understand exactly what you are paying for, there is no reason to overpay for the time and services that you don’t need every month.
In-house bookkeepers are expected to be productive throughout the working hours. But the reality is, despite strict checks over the productivity of employees, talk around the coffee machine is inevitable. It means that you are paying employees even when they are not productive. Also, an in-house employee on leave, due to any reason, creates a temporary vacuum and leaves you stranded without a financial expert to offer professional advice.
Contrarily, bookkeeping firms usually work 24*7 or at least for some extended hours to help you around the clock. Also, you don’t need to worry about undue costs for non-productive time, as outsourced bookkeeping will charge you only for the billable time spent doing the work.
Industry-specific bookkeeping is at times complicated. The in-house bookkeeper must stay updated with new skills, changing Canadian accountancy and taxation norms, CRA rules and regulations, new software, etc. If your in-house bookkeeper is not vigilant enough to cope up with this rapidly changing business environment it may end up developing quality issues for your business. It is not practical for small and medium-sized businesses to continuously train their in-house staff in-depth and across various functions.
Mostly, accountants and bookkeepers are not hired separately but only an agency.
On the contrary, when you acquire outsourced bookkeeping services, you get access to an entire team of experts having adequate knowledge, expertise, experience and is always up to date in all the aforementioned domains. They have experience of numerous years that exceed that of an in-house employee.
It is one of the most overlooked factors in the business world. You will be surprised to know that it is more likely for businesses to experience employee fraud. A simple reason is the accessibility of employees to inside information. Segregation of duties is not very effective to mitigate the risk when you have one or an exceedingly small team of in-house bookkeepers. Hence, the only best remedy is to choose an outsourced bookkeeping team, it will save you money and enhance the quality of financial services with proactive checks and balances. The outsourced firm would never indulge in any fraudulent activity as it can impair their reputation in the industry.
You can reap various benefits when you leverage the skills, expertise, and experience of bookkeeping experts at your outsourcing partner’s company. While we understand that outsourced bookkeeping is not right for every business, if it does fit your business needs, it is often cost-effective and provides more expertise than a traditional in-house bookkeeping segment. Assess your business requirements based on the above comparison and choose the better option out of the two. As an unbiased opinion, we can suggest that outsourcing bookkeeping services are always a better option than handling it in-house. While we at Filing Taxes do much more than just the essentials, the core of service is solid, reliable bookkeeping services that keep your business on track. Put your numbers to work and feel free to reach out to Filing Taxes at 416-479-8532. Schedule an NTR engagement appointment with us and take the first step towards proper management of your finances.
Disclaimer: The information provided on this page is intended to provide general information. The information does not consider your personal situation and is not intended to be used without consultation from accounting and financial professionals. Salman Rundhawa and Filing Taxes will not be held liable for any problems that arise from the usage of the information provided on this page.