A professional bookkeeping service can make a world of difference for any business owner. It is of vital importance for small businesses and entrepreneurs to have a professional keeping an eye on their balance sheet, someone that can make sure that all of the transactions made into or from the company’s accounts are properly reconciled. Business owners who try to manage this themselves run the risk of being distracted from their core competency. They would thus end up losing sight of their ultimate goal and be distracted from crafting the vision for the company if they’re not delegating the rather important task of tracking income and expenses to a professional.
The Advantages of Hiring a Bookkeeping Service
Small business owners are normally apprehensive about hiring a bookkeeping service. They just don’t see the advantage of bringing a bookkeeping team onboard. The fact remains, though, that there are significant benefits of having an external team. That’s because an internal bookkeeper is more emotionally involved in the business so there’s a chance that their opinion could have a slight element of bias.
A professional bookkeeping service is above that emotional link to the business. This allows them to offer a completely unbiased opinion, ensuring that the business owner gets to see the true picture. They would be unlikely to avoid discussing any of the negatives and may actually encourage that as addressing the negatives will help the business owner put their company on the path to success.
Another advantage of hiring an external bookkeeping service is that the business is immune to any shocks from the abrupt departure of an internal resource. External services have ample staff onboard that can ensure continuity for their clients even if someone leaves the job. A small business with an internal bookkeeper can find itself in a spot of bother should the person decide to leave abruptly.
This can cause a disruption in operations with a very real possibility of financial turmoil. On the other hand, bookkeeping services much prefer long term business relationships with their clients. They always ensure that even if there are personnel departures within their company, they always have staff on hand so that there’s no disruption for clients.
There really is no substitute for expertise. A general bookkeeper might be able to prepare monthly financial statements but there’s a possibility that their financial reports might not provide the level of insight that the business owner requires. It can be highly beneficial for the company if the bookkeeper has specific experience in that particular industry or has worked with similar companies in the past.
Why Online Bookkeeping Services are a Great Option
Online bookkeeping services have become increasingly popular over the years for several reasons. One of the primary reasons is that it tends to be more cost-effective compared to hiring an actual bookkeeping and accounting firm, so this is an accounting service solution that appeals to many small businesses.
The accounting software that these services use is very user-friendly. This becomes really helpful for business owners who are not that familiar with bookkeeping in the first place. So this eliminates the need for them to learn about the advanced methods of bookkeeping. They’re free to focus on other things that are of vital importance for the company.
The other obvious advantage of an online bookkeeping service is that it allows the business owner to be completely mobile. It’s like having a full-time bookkeeping department that can provide the information they want whenever they want and wherever they might be. Easy access to this information can make life easier for business owners, particularly those who tend to travel a lot or have many meetings out of the office.
Tips for Choosing the Bookkeeping Service that’s Right for Your Business
You first need to have a sound understanding of why you’re taking this step in the first place. Bookkeeping companies can provide a lot of services to you, including but not limited to tracking accounts payable and accounts receivables, full-time audit and payroll management, data entry and helping out with the day to day to ensure that you can focus on what matters the most. Decide which services you want to outsource and which you would much rather continue handling in-house.
Make sure that they’re serious about security, particularly if it’s a bookkeeping service for small businesses only. You wouldn’t want your company credit card information or details of your bank accounts being compromised if the service isn’t serious about security. One really can’t be too careful with the safety of information in this day and age. Be sure to inquire about the safeguards that they have in place and the protocols that they would follow in the event of a security breach.
It would be a good idea to get more information about the staff, particularly the employees that will be handling the bookkeeping for your company. That should enable you to get a sense of their credentials and get a feel for the kind of work that the company will be able to provide. Making that extra effort will ultimately allow you to shift a lot more off your plate since you’ll be confident in their abilities to properly do the job that you’re paying them to do.
Look at the online reviews! They can make or break a business nowadays and if the bookkeeping service that you’re considering has been around for long enough, there’s a good chance that it’s going to have many reviews online. Take your time to go through them and keep an eye out for any recurring complaints. That should give you an idea of the service’s weaknesses and whether they have taken any concrete steps to address them over time.
It’s Time to Take this Step for Your Business
After going through this article, you have understood the importance of hiring a bookkeeping service. Having dedicated professionals looking after your accounting needs can free up a lot of time for you and your other employees to focus on more pressing concerns.
A service that’s the right fit for your business will give you the assistance that you require to see any potential risks before they do any damage to your business while also ensuring the financial data’s integrity. Since they won’t have an inherent position to protect within your company, you can rest assured that an external service won’t be misrepresenting the figures just to cover a blunder. Businesses that opt for an online bookkeeping service can also save significant amounts of money as these solutions are generally more affordable than conventional services.
Small business owners often need to decide whether it’s easier to do something by themselves, or to get in touch with the experts. Few things, such as financial budget, versatility, and usefulness need to be taken into account before considering the choice that would provide optimum results.
In case, you’ve expanded your business to the extent where you don’t have time to do bookkeeping by yourself, you are going to face quite a difficult choice. Would it be best to add new staff members into the fold and rely on them with your books, or would it make sense to seek the services of an expert bookkeeping company?
If it is possible for you to invest in hiring new in-house employees, you could possibly pay for some of the premier plans that bookkeeping companies have to offer, and those solutions might still be a better deal than employing an in-house accountant. Deciding between bookkeeping company and bookkeeping staff goes way beyond their particular price tags, nevertheless.
Benefits of Bookkeeping Company
A bookkeeping company will provide multiple pair of eyes to review your work. You can be confident that the finest of industry experts would be handling your books. Accounts outsource companies are staffed with professionals, and in addition to no matter what qualifications got them their jobs, they usually undergo rigorous training to become an expert at whatever accounting software the client uses .
Bookkeeping outsourcing companies offer numerous pricing plans to help you add or remove services based on your requirements and financial budget. This versatility lets you switch between plans on a quarterly or monthly basis, one thing you can’t realistically expect from an in-house accountant.
In addition to this, bookkeeping companies are a lot more dependable as compared to individual employees. They are legally bound by an agreement to send particular reports and updates on pre-decided days.
Bookkeeping In-House Staff Benefits
The good thing about employing your own team to perform your accounting is the level of regulation and human communication you receive. By employing a proper in-house staff, you are no more completely dependent on your PC. You could seek help from your in-house accountant, as opposed to working by yourself with pre-developed accounting software application.
Employees tend to listen and understand a lot better than accounting software, giving you the ability to have your workforce perform added tasks in times when they are not occupied with bookkeeping.
Drawbacks of Bookkeeping Company
Possibly the biggest downside of bookkeeping outsourcing companies is their distance. While an in-house team is instantly available and easy to interact with, if the bookkeeping company doesn’t have a solid, open line of interaction, you may become quite aggravated in a short time.
You must have access to assistance whenever you want it, and if there is any difficulty, you must be in a position to get it resolved instantly. Needless to say, not every bookkeeping company has this downside; however this is an essential attribute to consider before outsourcing bookkeeping and accounting.
In-House Bookkeeping Staff Drawbacks
The two most important downsides of an in-house bookkeeping team are errors and expenditures. Even the premier plans from a bookkeeping company usually are less costly when compared to employing a staff member for bookkeeping tasks.
Keep in mind, along with the hourly salary, you also need to pay perks, manage extra paperwork, and take care of the vacation time. Remember the fact that although certain services could be hard to get, your in-house bookkeeper simply cannot always be present in the office and is not going to be available during the weekends to respond to your queries.
As we’ve stated before, bookkeeping outsourcing companies have specifically skilled bookkeepers who go through your books and make sure everything is properly organized. Mistakes are very uncommon. Undoubtedly, employing an in-house bookkeeper gets more costly than engaging a firm, but additionally it leaves you more prone to errors.
All things considered, a single set of eyes basically can’t pick up as much details as an entire team of specialists is able to. Those who have employee accomplishing various roles, simply increase their possibilities of highly-priced bookkeeping errors.
Hiring and training in-house bookkeepers would cost you multiple expenditures, whereas, outsourcing to Cogneesol will get you up to the mark services at highly reasonable costs. Get in touch with us +1-888-300-3913.
Bookkeeping Services Vs. Bookkeeping Employees
Small businesses must always choose whether it’s better to do something on their own, or to call in the professionals. You must consider things like budget, flexibility, and practicality before you even begin to consider which option gives the best results. Small business bookkeeping is an especially tricky problem. If you’ve expanded to the point where you don’t need to do your bookkeeping all on your own, then you face a very serious choice. Is it better to bring new employees into the fold and entrust them with your books, or is it better to hire a professional service? If you can afford to hire new employees, you can likely afford some of the biggest packages offered by bookkeeping services, and those services may still be cheaper than hiring a qualified employee. Choosing between bookkeeping services and bookkeeping employees goes beyond their respective price tags, however.
Bookkeeping Services Pros
A bookkeeping service provides multiple pairs of eyes to examine your work. You can rest assured that the best of the best are managing your books. Bookkeeping services are staffed with professionals, and in addition to whatever credentials got them their jobs, they often go through additional training to master whatever bookkeeping software the service uses. For instance, Fourlane’s entire staff is QuickBooks certified. Whoever handles your books doesn’t just understand bookkeeping, they also understand the software, possibly better than you do.
Bookkeeping services provide a range of pricing options so you can add or remove services depending on your needs and budget. This flexibility allows you to shift between packages on a semiannual or even monthly basis, something you can’t reasonably expect of an employee. Along with this range of options, bookkeeping services are far more reliable than individual employees. They are bound by contract to send specific reports and updates on specific days. Even the best lone employees, however, have sick days.
Bookkeeping Employee Pros
The benefit of hiring your own employee, or employees, to do your bookkeeping is the level of control and human interaction you will enjoy. By hiring an actual employee, you don’t have to rely entirely on your computer. You can choose your employee, rather than working alone with pre-developed software. This is especially useful if you run a very unique business with non-traditional sources of income. Employees take orders better than bookkeeping software, and you can have your employees fulfill additional roles when they are not busy with bookkeeping.
Bookkeeping Services Cons
Perhaps the greatest drawback of bookkeeping services is their distance. While employees are immediately on hand and easy to speak with, if your bookkeeping service doesn’t have a good, open line of communication, you can grow very frustrated, very quickly. You need to have access to help if you need it, and if there are any problems, you need to be able to get in touch immediately. Obviously, not all bookkeeping services have this drawback, but this is an important feature to consider before signing up for a service. Another potential negative, of hiring a bookkeeping service is a software update you may or may not want. Most bookkeeping services use a specific software for their work, and in order to really see what the service is doing for you, you need that software on your computer.
Bookkeeping Employee Cons
The two biggest drawbacks of bookkeeping employees are errors and expenses. Even the largest packages from a bookkeeping service typically cost less than hiring an employee for bookkeeping work. Remember, in addition to hourly wages or salary, you must also pay for benefits, handle additional paperwork, and deal with vacation time. Keep in mind that while some services may be difficult to reach, your employee will not always be in the office and is unlikely to come in during the weekend to answer your questions.
As we’ve mentioned before, bookkeeping services provide specially trained bookkeepers who look over your books and ensure everything’s in order. Errors are extremely rare. Hiring a single bookkeeping employee, however, is not only more expensive than hiring a service, but also leaves you open to more errors. After all, a single pair of eyes simply can’t catch as many details as a full staff of professionals can. If you have your employee fulfilling multiple roles, you only increase the chance of costly, bookkeeping errors.
Small business bookkeeping doesn’t have to be difficult. A bookkeeping service can handle your books with more accuracy than any single bookkeeping employee. What’s more, it can do so at significantly lower cost. Although both bookkeeping services and bookkeeping employees may fail to provide the kind of immediate response you desire, bookkeeping services remain more efficient and reliable than employees. Most small business owners already use QuickBooks, but if you don’t, then the software’s cost is still dramatically less than what you would need to pay for even a part time employee. Whether you want the most cost efficient option, or the option that will provide the best results, you should consider hiring a service for your bookkeeping.
Introduction to Outsourcing Accounting
Many small businesses, start-ups, and entrepreneurs find it challenging to hire an accountant. Especially with the right skills to prepare their company’s financial statements, manage bank account operations, analyze financial data, and prepare the outgoing invoices.
Nowadays, it is even more challenging to find a qualified and eligible person at an affordable rate.
More than 1/3 of small businesses are outsourcing their accounting. Interestingly, most small companies who outsource are not feeling comfortable doing accounting on their own.
Even though it is commonly believed that accounting and bookkeeping must be done inside of the business. But it is essential to ask yourself whether you have the necessary skills and experience to do this job. Also, do your staff has enough experience to coup with increasing accounting tasks. To add it up, 62% of all small businesses they think that they overpay their taxes.
Due to this fact, you might consider outsourcing accounting services to the company that is with the right knowledge and qualifications. Also, which company can do the same job more qualitatively and cost-effectively.
For the same reason, many executive directors have noticed various positive aspects of outsourcing bookkeeping and accounting services. Importantly, outsourcing such services should be without any adverse effects on their business, employees, and customers.
Therefore, we want to share the top 7 benefits, which our clients in Denmark, Norway, Sweden, and Switzerland, have already experienced after they decided to outsource bookkeeping and accounting.
7 Benefits to Outsource Accounting and Bookkeeping Services
1. Cost-Saving Accounting Services
In general, most businesses consider outsourcing to be additional, and therefore the unnecessary cost for their business. It is not the right perception at all. In fact, it is opposite.
Our clients who are outsourcing accounting is willing to reduce their expenses but most importantly, without reducing the quality.
The savings that outsourcing usually provides can be quite considerable as most companies can offer their services at the lower cost rates (typically due to lower labour costs at their location).
Besides, by outsourcing, you save money on paying the salaries, taxes, office supplies and benefits for the full-time or part-time employee. You only pay for what you need. There is no loss in productivity costs that come along with hiring full-time employees.
2. Eliminate Time and Costs of Hiring Processes
If you will look at the picture, the recruitment process is a rigorous job. It takes resources to manage it, from creating a recruitment strategy, selecting applicants to interview them. The recruitment process takes your business time, it costs, and you will need to dedicate the time either for yourself or employee.
Many companies do not consider the time they spend looking for a professional Accountant. And time is equally correlating with costs. It must be accounted to savings of outsourcing business processes.
3. Saving your Time
As your business grows, you will find yourself spending more time managing your money and less time scaling the business. Therefore, the outsourcing administrative tasks like bookkeeping and accounting help you to focus your time, energy and resources on creating the business strategies. It will be bringing more revenue, as well as networking and building relationships with your customers.
4. Expert Accountants and Bookkeepers
Outsourcing may offer you the possibility to hire a professional with a higher level of expertise at an affordable price.
Outsourced bookkeeping and accounting service firms continuously have to improve their skills and qualifications to stay competitive in the market. Imagine, 50 people working in the same office. They can easily share the new accounting trends, solutions and tools. To add more, great accounting companies have more extensive access to training, courses, and they are participating continually.
Moreover, outsourcing to an accounting firm is giving you access to the team of Accountants. For example, at Baltic Assist, for the fixed price company gets a team of accountants. Not merely one person to deal with different kind of tasks.
Choosing the outsourcing company wisely, you can be sure that your accounting is in the reliable and knowledgeable company’s hands.
5. Scaling Accounting Easily
The accounting service providers has the amount of availability to scale your services significantly without any lag. For example, if your bookkeeping and accounting tasks exceed the number of functions for 1 employee, you can easily be enforced with the extra workforce. Without the need to go through a rigorous recruitment process.
Moreover, accounting and bookkeeping service providers are charging on an hourly basis. It means you can scale-up or scale-down the hours without any interruption.
6. Automation technologies
Most businesses use accounting automation software to save time. It will save time, but importantly, it reduces risks. Automating accounting is minimizing human errors. Secondly, in automation software, accountants get real-time reports. They assist in catching potential problems and resolving them in an early stage. Thirdly, it will reduce the probability of internal fraud.
Most of the accounting service providers are highly qualified in the automation tools such as Quickbooks, Sage, Visma, Xero, Microsoft Dynamics, SAP and more.
If your accountants are still using only Excel sheets – you are wasting your time and money.
7. An accountant is your advisor
A good accountant will always provide advice on how to make accounting more efficient. Sometimes he might work with a couple of companies and propose an excellent experience from another client. Whether it is about taxation, accounting software or even provide financial advice.
When You Should Consider Outsourcing Your Accounting And Bookkeeping
From our experience working with different Scandinavian and Western companies, outsourcing bookkeeping and accounting tend to work the best when:
- A small business does not require a full-time bookkeeper but needs a person with more skills than the office manager, or receptionist can provide.
- A company of any size cannot find a full-time employee with suitable abilities at the affordable costs.
- A growing company is looking for opportunities to scale their accounting and bookkeeping services anytime.
- The temporary services are needed, e.g., extra help with end of the year reports or if a full-time employee is going on holidays, maternity leave, etc.
However, even you will hire a skilled and qualified person, someone (usually the executive director) will still need to be involved in the process while approving invoices, making deposits, reviewing timesheets, etc.
5 Things to Look for Before Outsourcing
Once you decided to outsource, the next step should be to choose an outsourcing company that will be a great fit with your goals and objectives, but most importantly, would be able to match your needs and requirements. We believe, when outsourcing bookkeeping and accounting services, the quality of performance and efficiency must be the top priority. However, a few more essential factors must be considered, as well.
1. What accounting and bookkeeping services you are in need
Is to prepare the end of the month reports, balance sheets, payroll services, reporting to authorities or taking care of your account payables and receivables? You maybe need someone to prepare your bank reconciliations and analysis or just enter the data into the accounting software? Whatever it would be, you need to be clear on what you do personally, what you’re in-house staff is responsible for and what you want someone else to do.
2. Competitive cost range.
Every accounting and bookkeeping company have their payment schemes – some of them charge by the hour, others every month. Therefore, you can choose the payment term that suits your needs and budget the most, but do not make your decision only based on the cost-effectiveness.
Make sure that the company you want to hire is experienced, professional and has the right qualifications. Remember you can always ask for some recommendations from their previous or existing clients, look at their reputation in the market, financial stability, but most importantly, their ability to deliver high quality and consistent results.
4. Data security.
In our opinion, data security plays an important part when outsourcing accounting services online. The highly respectable firm handles its clients’ data with most required privacy and ensures that each transaction is secure. It is essential because you will be not only communicating cash flow information to them but also confidential data.
5. Flexible service level agreement.
Accounting and bookkeeping service provider must show their flexibility and desire to match your future needs and requirements. We strongly suggest to check the term and conditions before you sign the contract, so you will be aware of how to terminate the agreement if you are not satisfied with their work.
6 Accounting Tasks Your Business Can Outsource Tomorrow
- Reporting to authorities and Management.
- Payroll processing services.
- Account payables (payments creation).
- Account receivables (debtors follow up).
Bonus advice: If you hire a big-five accounting firm to perform an audit, you should continue to use the other company for your accounting and bookkeeping functions. Due to independence regulations and standards within the accounting profession, a CPA firm performing an audit cannot also perform the accounting and bookkeeping for the same company.
There are significant advantages for clients who decide to outsource their accounting tasks. To begin with, cost-efficiency, and ending with flexibility in terms of contracts or scaling the number of functions. Accounting and bookkeeping are a vital part of business, but also complex. It requires time and specific knowledge. Without accounting experience, there might occur many errors which can lead to a decrease in your business or even go bankrupt.
Baltic Assist is a reliable accounting service provider to small and medium-sized businesses with over 500 clients from Scandinavia and Western Europe. You can check our accounting and bookkeeping services or leave us a quote.
How to Choose the Right Bookkeeping Services
Whether you’re just starting your business or you’re fine-tuning your financial strategies, a professional bookkeeper can be a tremendous help when it comes to balancing your daily expenses, earnings and managing your invoices. By handing these jobs over to a specialist, you can lower your risk of error and instead use those extra hours for other pursuits. But where do you find a bookkeeper, and what do you need to know in order to choose? Read on to discover how successful businesses locate the best bookkeeping services.
While hiring an employee to take over bookkeeping may seem like a good way to keep control of your finances and the people managing them, this method often falls short in execution. For businesses without an expertise in managing bookkeeping procedures, accounting software or financial analysis, managing bookkeeping internally can be a recipe for disaster.
Additionally, in many situations, internal bookkeeping staff can be subject to a myriad of information security, fraud or even simple errors or mistakes in financial entries. From repurposing office admins to mismanaging employees, having an internal bookkeeper requires a lot of oversight.
Hiring Freelancer or Part-Time Bookkeepers for Bookkeeping Tasks
What kind of education and experience does a freelancer have? The answer varies greatly from one worker to the next. You want to ensure your bookkeeper has professional education in the field, along with relevant experience and a good track record. Certification, licensing and insurance should all be investigated. If a freelancer makes a mistake while working for your business and doesn’t have liability protection, you’ll likely be left holding the bag. In addition, if your freelancer is working off-site, say from a home office, you’ll have to find a way to provide adequate oversight in order to prevent account mismanagement and serious mistakes.
Competent freelancers exist, but you’ll have to be diligent to find the right one for your business. Your bookkeeper needs to be able to balance your books and provide insight both on problems you’re experiencing now, and those you may come across in the future. To be effective, they’ll also need to use resources that are compatible with the software and payment tools you already have in place.
Hiring a CPA to do a bookkeeper’s job is usually a serious waste of resources. Not only that, but accountants rarely enjoy the work. Instead, consider hiring a CPA to advise you on financial matters requiring more expertise, like filing taxes or managing investment funds. CPAs regularly work with bookkeeping services, and may be able to recommend professionals who can fill a daily accounting role for your business at a much lower price.
Hiring Professional Bookkeeping Services
Finally, there are bookkeeping service companies that manage daily accounts for multiple businesses. They often employ CPAs for management roles to provide adequate oversight and counsel for a bookkeeper who runs into a problem. Because they work with a variety of clients, these services often have access to a wider range of tools, and because they employ so many people, they have a better chance of having the experience needed by your business. Additionally, leveraging connections to industry experts and accounting technology companies can provide extra benefits to businesses.
Hiring a bookkeeping service to manage your accounting needs can help you identify potential risks and opportunities, in addition to simply ensuring the integrity of your financial data. Even the smallest business owner can often benefit from their help and advice. Unfortunately, not every solution is profitable once put into practice. Protect your business by taking time to find and hire the right bookkeeping partners.
Bookkeeping Services or Bookkeeping Employees: Choose Better for Your Business
Being an entrepreneur, “What’s best for your business: Bookkeeping services or Bookkeeping employees” question might have troubled you at least once in the entire working process. QuickBooks users at least once look for the answer to this question. Understanding the need of the hour, we have come up with this article, where you will get all the answer to your questions.
Difference b/w Bookkeeping Services and Bookkeeping Employees
Bookkeeping is basically a part of the accounting process that involves recording of the financial transactions. The transaction is all about purchase, sales, receipts and payments to be made by organizations or individuals. With the advancement in technology, today bookkeeping services are offered by software. However, it is always a debatable topic that whether Bookkeeping services are better for business or bookkeeping employees.
Entrepreneurs have to ensure that proper processing and assessing is being done, and also the finances are handled in the right way and more. But all these tasks are pretty cumbersome and time consuming. And this is why businesses look for ways to handle all these tasks.
If you want to know the answer to this question, then stick to the article till the end. However, for more details, you can get in touch with our accounting help team via our toll-free number i.e. 1-844-405-0907.
Perks of Bookkeeping Services
In order to decide from the two options, it is important to first get familiar with the perks of each of the options. Thus, following are the benefits of bookkeeping services:
Cover diverse aspects of financial management
One of the major benefits of availing bookkeeping services is that the professionals who offer these services conduct verification of data, analyse the accounts, perform audits, and accordingly caters a financial report. Not only this, but they also make the income statements, tax return records as well as maintain the balance sheets. The best part is that all the analysis that they offer give an insight of the business trends, growth opportunities as well as cash flow management strategies, which makes Bookkeeping Services beneficial for the businesses.
Reduced risk of errors and omissions
Coming to the next perk of bookkeeping services, it reduces the risk of errors and omissions. The bookkeeping service providers are known to handle the rebates, the gross amount of sale, net sale amount as well as other financial transactions. In simple words they are the ones who decide how to handle transactions and bookkeeping activities without any kind of errors, which makes it a good option for the businesses.
The issue of overhead costs is one of the major concerns of majority of businesses. Apart from this, it is offering the base salary and there are many additional costs incurred by the employers on hiring employee which consists of payroll taxes, medical benefits, sick days, retirement plans, screening interviews and more. All these extra costs can be avoided by availing bookkeeping services as they aren’t very expensive as they seem to be. Thus, the entrepreneurs consider Bookkeeping services beneficial in terms of cost effectiveness.
Perks of Bookkeeping Employees
Now that we have explored the benefits of Bookkeeping services, we will now check out the benefits of bookkeeping employees.
Daily Transaction Records
One of the most compelling benefits of having bookkeeping employee is that he/she keeps record of the day to day transactions. The Bookkeeping employee maintains purchases, payments, sales and receipts through a general ledger. They also use certain software to keep track of credits as well as debits. Moreover, they also make a trial balance which makes tracking of cash flow much easier. All this adds to the pointers to opt for Bookkeeping employees.
Easy Data generation of organization’s financial activities
Bookkeeping employees generate data of the company’s financial activities on a daily basis and in the long term this data turns into information that helps in handling the financial issues of the company. The data also assists the entrepreneurs in avoiding unnecessary expenditure and ultimately this leads to lesser chances of missing on bills or payments.
Another benefits that adds to the list is that opting for bookkeeping employees makes it very easy for the entrepreneurs to keep a check on the performance of the bookkeeping employees and also follow-up with them. This actually induces more productivity as you can get the work done as per your requirement.
Disadvantages of Bookkeeping Services
Now that we have explored a lot about the perks of both the options, it is better to get familiar with the negatives as well. The negatives of Bookkeeping Services include the following:
Inaccurate/late financial report
When the users avail bookkeeping services, at times there are chances of meaningless or incorrect accounting or bookkeeping reports. This can affect the functioning of the business and that’s why many businesses prefer in-house bookkeepers as they work with dedication.
Even the idea of hiring bookkeeping services seem to be an easy solution, at times it becomes quite difficult as you do not get them in-person. This makes the task of tracking their work and follow-ups pretty difficult.
Disadvantages of Bookkeeping Employees
Even though the in-house bookkeepers may be very efficient in maintaining the finances and transactions but they often lack expertise in various other aspects. However, the bookkeeping service providers have a big team where each professionals have expertise in different niche and this makes the work a lot easier.
Distraction from Core duty:
It has been often noticed that in many businesses the bookkeeping employees are provided with additional responsibilities like human resource and this distracts them from the main work. This eventually affects the task of bookkeeping and for which organizations have to face many hassles.
As we have given a proper insight about the pros and cons of both bookkeeping services and bookkeeping employees, now making the right decision for your business falls on your part. The decision largely depends on the type and need of the business. Thus, before you jump on to any conclusion, first analyze the requirements of your business. The in-house bookkeeper is a great option for small business, but if you are a bigger organization and in a tight budget then bookkeeping service is the perfect option for you. Choose wisely so that your financial transactions are sorted.
For any doubts and queries or if you are still unable to decide which option to opt for, then connect with us and our experts will be ever ready to help you. Dial toll-free number i.e. +1-888-300-3913 to communicate with our accounting experts and Certified ProAdvisors. And we will be there to assist you in a single call.