Should You Outsource Your Bookkeeping or Keep the Function In-House?

Bookkeepers typically do the following:

• Enter financial transactions into computer software
• Put costs (debits) and income (credits) into the software, assigning each item to the right account
• Produce regular balance sheets (costs vs. income), income statements (assets, liabilities and equity) and totals by account
• Check for accuracy in figures, entries and reports
• Reconcile any discrepancies they find

Questions to ask when wondering “Should I use an outsourced bookkeeping service?”

Do you have someone on your staff with the ability and time to do all of the above tasks properly and dependably?

If so, is their time best spent in this role, or do they have other talents more valuable to you in other areas?

Do you have someone to fall back on if that person becomes ill, goes on vacation or leaves the company abruptly?

Bookkeeping considerations

Cost

Bookkeeping, while essential, is a non-revenue-generating task. It is often more cost-efficient to hire an outside professional bookkeeping service than to keep the books yourself.

People who do bookkeeping for a number of clients are usually more experienced, knowledgeable and efficient than those who work in-house for one employer. The in-house bookkeeper at a small company or franchise is often called away from their primary tasks to assist with other things.

Bookkeeping services should charge a flat monthly fee (sadly, many do not) so you always know how much your bookkeeping is going to cost.

Using a reputable service, you don’t have to deal with all the headaches that go with employing someone: salary, benefits, training, retraining, unemployment and Medicare payments, etc.

Staying up to date

Independent bookkeeping companies like BookWerks’^TM use the latest software to record transactions automatically (and correctly). And it is their business to stay up-to-date on the most recent requirements and regulations to make sure you never inadvertently run afoul of the law.

Accuracy

An inexperienced bookkeeper can make mistakes that lead to nasty surprises like tax audits. Losing track of a large receivable, or neglecting to pay an invoice, could adversely affect your credit rating.

An outside firm has a much greater motivation to make sure every transaction is recorded accurately and every report is delivered on time: their continued employment and reputation depend on it!

Privacy

The records bookkeepers work with include expenditures (money going out), receipts (money coming in), accounts payable (bills), accounts receivable (invoices) and profit and loss (a report of the organization’s financial health). Some business owners prefer their employees not have access to all that information.

Our small business and franchise clients find using BookWerks’^TM accounting bookkeeping services is a smart business decision. We’re one of Cincinnati’s best outsourced accounting bookkeeping companies.