“Should I outsource bookkeeping?” If you’ve asked this yourself(a start-up owner) once, you’ve asked it a hundred times.
Coherently, the need for that question’s arisal is quite understandable. Start-ups have a plethora of things to worry about, i.e., investors, business expansion, and whatnot, and an increasing need for an expert bookkeeper does not help matters much. As your start-up stretches its wings, the number of your start-up’s transactions would break its previous highs a lot more frequently. At that point, opting for outsourcing makes much more sense than having to switch accountants as per evolving business requirements.
Although, before landing on a conclusion about whether it is a good idea to opt for an outsourced accountant or not, let’s talk about what it is and what it can do for your start-up.
What is Outsourced Bookkeeping?
In layman’s terms, when a business hires a firm to keep their books virtually, it’s called outsourced bookkeeping. It includes but isn’t limited to keeping records of and maintaining all the company’s financials such as their transactions, ledgers, payables/receivables, balance sheet, profit and loss statement and tax liabilities. To give you a better idea, let’s say you run a start-up that needs an experienced bookkeeper because the increasing number of bookkeeping projects is taking a toll on your team. But, the problem is hiring an in-house bookkeeper isn’t something that you intend to spend that much money on. In cases like that, you may consider outsourcing your bookkeeping so you can centralize your and your team’s undivided attention to your start-up’s growth. You can say that outsourcing rids you of your bookkeeping worries at super-efficient costs.
What To Expect When Outsourcing
Provides Inexpensive Expertise
As we pressed upon the issue earlier, hiring an in-house accountant can get very expensive. On top of that, the more capable you need them to be, the costlier they become. If you opt for an in-house bookkeeper, increasing bookkeeping projects would mean increasing accountant fees.
However, with outsourced accounting services, you can get way more capable accountants to work for you at a lot less than what you’d pay otherwise. If you choose the right company to outsource to, you can get a whole team of experienced and expert accountants to take care of your books, so you can focus on more important things.
Ensures All Boxes are Checked
Accounting is not as simple as it seems, it’s a tough nut to crack. The person or organization who takes care of your accounts has to have knowledge of all the areas of accounting, including accounting standards, law, taxation, how to maximize tax deductions legitimately and whatnot. On top of that, accountants also need to be mindful of any/all updates issued by the Financial Accounting Standards Board. One of the good things about outsourcing your books is you get all these boxes checked.
Outsourcing accounting companies have a team of highly qualified bookkeepers with elaborate training and experience in accounting. You could utilize their strength to your advantage and pass on all accounting tasks to them, and focus your team’s strength on solidifying your brand.
Helps You Maximize Growth
Start-ups go through a lot of challenges. One of them is to manage their finances, such as processing payments, organizing records, keeping track of tax liabilities, etc. Parallely, they also have to ensure that all their accounting practices abide by the law.
Your start-up’s growth is justified by how much effort the team puts in as a unit. Your team is an invaluable resource. Letting it go to waste like that is not in the good interest of your start-up.
When you burden your team which is giving their heart and soul to your startup with tedious projects of accounting, you miss out on the productivity they could contribute otherwise.
You can relieve them of that burden by outsourcing your books, so they can keep giving their heart and soul to your start-up.
Helps Make Data-Based Decisions Entrepreneurs have umpteen thoughts occupying their brains at all times. Thoughts of different ways to build a solid brand. Thoughts of solutions for obstacles their start-up is facing, and whatnot.
Given that entrepreneurs need to be quick and assertive with most of their decisions, it makes perfect sense that they mostly rely on their instincts to make them. However, accounting is a number game and making accounting decisions based on just your guts may not be the best idea. Outsourced bookkeeping services can give you a data-based analysis of your accounts and finances which can help you make calculated decisions.
Helps You Start On the Right Foot. The competition for start-ups nowadays is relentless. You have to keep progressing at full pace if you want to create an impact.
However, your start-up cannot grow at full pace if your path is huddled with burdens like bookkeeping, payroll management, tax management, etc. It requires a clear runway along with your vision to take off. Some expert bookkeeping assistance may help you.
You may have thought of hiring an in-house accountant. Although, as your start-up grows, your accountant will get overwhelmed. Hence, it would be ideal to consider hiring someone who could handle all accounting jobs even when your start-up’s transactions extend multifold.
Outsourcing should do the trick. You get an experienced team that can handle rising accounting projects at super affordable costs.
Gives You Your Time If there’s one commonality between entrepreneurs, it’s that they consider themselves to be superhumans. But, let’s address the truth, they’re not. Entrepreneurs feel that they can handle everything single-handedly.
The urge to save money might lead them into believing that they can learn accounting and handle it themselves, and save some bucks. After all, how tough can a number game be?
What entrepreneurs don’t take into account is how much of their valuable time they’re giving it. Additionally, professional bookkeepers would do a far better, quicker and more accurate job than them. So, instead of burdening yourself with another task someone else could take care of, let those who are meant to handle it do their job, and give your time to your start-up.
How to Appoint Outsourced Bookkeepers?
Choosing the right outsourcing company is crucial. You want someone who fits the criteria of what your bookkeepers should do for you as mentioned in this post. Well, we could help you.
Key Carrier Accounting is a well-known and trusted outsourced accounting company based in India. We have a broad clientele spread all over the US and expanding. You can read more about our clients and success stories in our case studies. If you have any questions or need assistance regarding anything related to outsourcing, feel free to reach out to us at any time.
