Common Myths About Outsourced accounting and Bookkeeping Services

1. Common Myths About Outsourced accounting and Bookkeeping Services Do you know? Outsourced accounting service is the best option for small businesses. Many people didn’t agree with it. They have certain misbeliefs or misconceptions about outsourcing. Due to this people find a bit reluctant to outsource their accounting. The best thing is to address the myths about outsourced accounting and bookkeeping services and clear their understanding. That’s what this post is about. We have highlighted the common myths about outsourced accounting and bookkeeping services and how your business can benefit using this service.

2. Here are thecommon myths about outsourced accounting and bookkeeping services Myth #1: Is not secure The accounting department deals with financial information and sensitive data. Therefore business owners worry more about the security of their financial information. This is a myth but not entirely false. It is also a well-known fact that no data is 100% safe-whether it’s online, offline, or jotted down in a notebook. Whether you carry accounting in-house or at another firm, you can never be sure about the security breach. Hence, the best-outsourced accounting services company employs the security measures of the latest available technology. They don’t compromise with the security of your data and serious concern about it. The security measures employed by the outsourced accounting company are restricted access, secure firewalls, CCTV monitoring, file sharing using encryption, and no data transfer capabilities in the work area. Outsourcing company also considers data security as a crucial factor and signs a strict non-disclosure agreement. Myth #2: Is very expensive Outsourcing accounting saves money as well as your valuable time. This myth is not true. If you do accounting in-house you have to hire an expert resource that is very costly. Also, you have to pay salary and benefits like insurance, paid time off, payroll taxes, etc. Instead when you outsource you have to pay on a project basis or an hourly basis. Thus you pay only for the services you hire the outsourcing company and control the costs involved in accounting. If your business grows and you want to scale up your accounting team, outsourcing companies are flexible and support you as per volume and complexity required. Thus when you outsourced accounting, setting your books up, and maintaining them monthly is far more cost-effective. Also, it frees up your time to focus on core activities of the business that drive sales and service and, ultimately, profitability. Myth #3: Is not trustworthy Outsourced accounting is like handing over your portion of the business to a third party. This can be a significant fear that outsiders will never be trustworthy in the affair of accounting as it includes delicate matters of the transaction of money and other confidential information. So this myth is ideally true but you

3. must also remember that the professionals who support you in accounting also think in the same way. Many of them are business owners like you so they are also concerned to maintain the highest level of client service possible, as you are. If they leave any loophole or do unusual business activity within your firm they will be better equipped to suggest more innovative and effective ways of running your financial affairs. Thus outsourced partners are trustworthy and reliable. Myth #4: Fear of losing control over the company’s finances As a business owner, you would like to have complete control over each aspects of your business. As per the Association of Chartered Certified Accountants, business owners accept that outsourcing can help them cut costs but at the same time they were also reluctant to outsource because they think that they will lose control over their financials. This is a myth that is not true. In reality outsourcing to a specialized firm keeps your books in order, you will have more control of your finances. Also, your accounts will be organized in a way that you have a clear picture of your financial standing. Thus with proper bookkeeping support, your company will be well-informed of the financial position and enable you to make more informed decisions for the business. Myth #5: Only viable for large businesses The myth that outsourcing companies are only for a large business is not true. In fact, outsourcing options are flexible irrespective of the size of your business. Large businesses can increase their productivity and efficiency by outsourcing their accounting work, but it does not mean that small or mid-sized companies can’t gain benefits as well. Outsourcing concept has come into existence for small businesses because managing everything at a time for them is a challenge. Small businesses get more benefit from the economies of scale offered through outsourcing. They can provide a variety of services to their clients at affordable rates. For example, if their client wants to perform taxation as well as bookkeeping services but they have only bookkeepers in the house. They can outsource tax professional services and use the in-house staff for bookkeeping services. Thus they can manage all kinds of services to their clients without hiring full-time professionals. Today also 40 to 60% of the accounting service providers cater to small businesses rather than large businesses.

4. Myth #6: Does not serve the complete purpose Business owners think that outsourcing accounting services do not serve the complete purpose and they need to still hire an in-house accountant. Whereas in reality, outsourcing companies provide end to end support to their clients. This myth is completely false. Hiring an accountant in-house is required for those business owners who don’t have a strong understanding of even basic finance and accounting terms. Else for the majority of companies, there is no need of hiring an accountant. Myth #7: Do not understand My Business Outsourcing companies work with many businesses across various verticals. When accounting is outsourced they allocate a single point of contact for a client. The wide range of outsourcing companies experience helps them understand your business and execute it in the right way. Myth #8: Takes more time to complete the task within schedule Maintaining the bookkeeping work along with other tasks is very tedious and chances of mistakes are more when it is done in-house. So when bookkeeping work is outsourced, it is handled by the experts who are well versed with finance rules and up-to-date with compliance laws. Hence, the outsourced accounting team does the job more efficiently within the schedule or in lesser time. They maintain all the compliances and clarify everything from us wherever required. Thus they do the work accurately and on time with no mistakes. As for as sharing file and data to the outsourcing team is concerned. It can be done electronically, through dropbox or can be emailed back and forth with the company to send over files. So there is no time lag in any activity after outsourcing even the productivity increases. Myth #9: Easy to do bookkeeping myself and save more money This is a common myth that business owners can handle and manage the account and save more money. No doubt there are many fabulous tools that are easy to use but that doesn’t mean you know how to get the most out of it. Therefore till the time, your business is small your myth about outsourcing is right up to some extent but once your business grows finances are likely to become more complex. In such scenarios instead of trying to guess at what you’re doing. Better to consider relying on financial experts who have both the time and the advanced skills necessary to keep your finances in order.

5. Myth #10: Finding an outsourcing partner is a challenge Many outsourcing companies are there but finding an outsourcing company to outsource bookkeeping for small businesses is much of a peaceful task if worked upon that way. It’s never being a challenge if you are clear what you want. So while finding a service provider you should be clear about the size of your company, the volume of work you have, the number of hours of work for your partner, and what is your budget. If you have clear ground rules and no clutter in your mind, you are good to go! Myth #11: Fear that outsourced accounting goes overseas There is a wrong misconception that outsourced accounting work goes overseas. This confusion arises because of the word outsourcing. People understand the meaning of outsourcing as obtaining the goods or services from an outside source or contracting out work. But in any case, it doesn’t imply that the work will be performed at offshore. It’s up to you to decide whom you want to assign your accounting work. If you find an accountant in your local area that is capable enough to handle the work and meet your needs, you can assign it to a freelancer or you can find an outsourcing firm and hire them for your work. In fact, if you find an overseas company aligning with your need you can take their service for your accounting work. Myth #12: Is more vulnerable Out-Of-House There is a fear that the financial information is more vulnerable when you send it out-of-house. This myth is completely mistaken by people. Now a day’s news is constantly reporting on hackers which create a threat and nerve-wracking feeling that financial information is not protected while outsourcing. Keep in mind that the best-outsourced bookkeeping services not only deals with your financial information. They deal with many people’s sensitive financial information and documents. Therefore they establish the best possible security practices in their premises to protect the physical records as well as any digital information. So you should feel secure when you send your bookkeeping to a service provider. Conclusion You have seen there are many myths about outsourced accounting and Bookkeeping Services in people’s mind but in reality, those myths are useless. Actually, outsourcing is a boon for small business owners and benefits them tremendously. If you are looking to outsource the accounting function then you have paysquare as the best-outsourced accounting services in Pune to help you. You can contact us @ (+91) 20 6819 8000