Five Common Concerns About Outsourced Financial Operations & Bookkeeping

You started your own business? Good for you! You’ve always dreamt of forging your own path to success by doing what you love….and getting paid for it! So now that you’ve set up shop, hired a few employees, retained some repeat customers….what about the financial side of things?

There’s more to owning your own business than just making beautiful wood furniture, or roasting coffee beans, or restoring antique cars…or whatever your talent may be. There is also the daily upkeep of financial records, payroll, tax filings, billing the customers, collecting from the customers, paying the bills, etc. Suddenly, owning your own business sounds really exhausting!

Unless you are an accountant or bookkeeper you may feel overwhelmed by the daily financial operations of your business. The answer? Outsourced Financial Operations & Bookkeeping.

Over the last several years, outsourced financial operations and bookkeeping have gained popularity among today's small business owners. If you have been thinking about outsourcing but are skeptical…keep reading. 

In this blog we are going to address the 5 most common concerns I hear about hiring an outsourced bookkeeper.  But first, let’s talk about what outsourcing means. At its most basic level it means hiring an outside specialist to take care of specific business functions that you don’t have the time or knowledge to handle. When you outsource the work, you save time, effort, and the hassle of doing it yourself or supervising an in-house employee. And you usually get more bang for your buck!

OK, so on to the big concerns….

Concern #1 - Will I still be in control?

In short? Yes, you will still be in complete control of your business.

The fact is that offloading your bookkeeping to a professional will give you the freedom to focus on your business operations…that is doing what you love. Hiring an experienced bookkeeper will keep you organized and informed with timely and accurate financial information that will keep you firmly in the driver's seat of your business. With better information you can make better decisions. And the decisions are all still yours.

Concern # 2 - It’s Too Expensive

Yes, outsourcing comes at a cost…but think of it as an investment in your business. Remember that the time and energy you'll save by using an expert to take care of your books is likely to pay off elsewhere. Instead of spending 15 hours a week on your books, you can spend that time making sales, networking, creating new products…or even taking time for some very important self-care. And remember:

“Time is more valuable than money. You can always get more money, but you can never get more time.”

What about hiring an in-house bookkeeper? It’s true that on the surface it looks like an outsourced bookkeeper is more expensive based on the hourly rate. But remember, professional outsourced bookkeepers can do the same work in significantly less time and you aren’t paying for sick-days, vacation, payroll taxes, benefits, workers comp insurance, ongoing training, office space, etc... the way you would if you hired an in-house bookkeeper or accountant.

Concern # 3 - Data Security

It’s only natural for business owners to worry about the security of their financial information when they share their books with an outside bookkeeping company. Especially when the data is stored in the Cloud.

While no data is ever 100% safe - whether it's online or offline - the security put in place by professional outsourced bookkeeping services are based on the most up-to-date technology available.

Ultimately, you're as likely to experience a security breach within your own office network, as you are when doing business with a qualified outsourced bookkeeping expert.

Concern #4 - Can I trust an outsider?

We are small business owners just like you, and we are just as concerned with maintaining the highest level of client service and satisfaction as you are.  And just like you…a few bad Yelp reviews and we are done for.

Another benefit is that as an outsider we will have a more objective view of your business, which means that we will be far more likely to spot any unusual business activity within your company and we will be able to suggest more efficient processes. We are well versed in industry best practices and strong internal controls.

Concern #5 - I’m as good as a professional…QuickBooks told me so….

There's no denying that bookkeeping tools like QuickBooks Online are fabulous and relatively easy to use. But just because you've armed yourself with a valuable bookkeeping solution, it doesn't necessarily mean you know how to get the most out of it. And it doesn’t mean you know the latest rules of bookkeeping and accounting. QuickBooks might show you how to input a fixed asset, but does it teach you about the depreciation, useful life and residual value of that asset? Does it help you interpret the data that comes out in the reports? As trained and experienced accountants and bookkeepers we have the knowledge necessary to ensure your financial statements are correctly presented and ready for your tax preparer at year-end.

So, there they are…the five most common concerns I hear from almost every prospective client. I’m sure there are others and I’m happy to discuss them with you. Send them to me and I’ll update this blog with the answers!

Now that we have addressed the five big concerns…are you ready to outsource? If so, contact us today for a consultation!