Why Outsource Your Bookkeeping In 2024
Outsourcing allows businesses to focus on operations and provides consistency in a role where inconsistency is quite costly to recover from
Consistency
An in-house bookkeeper may leave for several reasons, but the most common reason is a better opportunity with another employer. Your bookkeeper is not likely to drop you for another client regardless of pay.
Focus
There's a misconception that an in-house bookkeeper will be more focused on bookkeeping duties. In most cases, in-house bookkeepers will become bogged down with other tasks within the company. This occurs slowly over time but eventually, as more and more tasks are absorbed by in-house bookkeepers. Bookkeeping duties will take a back seat leading to falling behind on reconciliations and financial reports.
Cost
Most bookkeepers will eventually be able to settle on a fixed price for services ensuring better predictability of costs. In addition, there are quite a bit of cost savings when using an outside bookkeeper. In-house bookkeepers have the below-added costs compared to outsourced bookkeepers:
Salary and payroll taxes
Employee benefits
Unemployment costs
Recruiting, hiring, and training costs
Paying sick and vacation time
Staff overhead costs (rent, supplies, equipment, furniture)
Satisfaction
If you are not satisfied with your outside bookkeeper switching to another bookkeeper is a simple process. Switching to another in-house bookkeeper is a bit more complex. Switching in-house bookkeepers involves meetings with HR, performance improvement plans, and meetings with the unemployment office.
Consulting
Outsourced bookkeepers typically have experience with multiple businesses and are aware of different processes with these companies. Thus they can shed light on what they've seen work and not work. This insight and advice is invaluable and is something less likely with an in-house bookkeeper who may be capable at bookkeeping but does not have the broad knowledge that comes from working with many companies.
Conclusion
Every business is different, outsourcing your bookkeeping gives you the flexibility and control to search and pick the right bookkeeper for your business and allows you to focus on what you do best, running your business.
Read up on the risks of burnout for small business owners. Check out the services RVA Bookkeeping provides and if interested request a quote.
What do you have in place for bookkeeping right now? What has been your experience? Let me know in the comments below.