You get access to industry experts, it’s one less thing for you to worry about and you know they’ll do it right. These are just some of the advantages of outsourcing your business’ bookkeeping - but we’ve listed the big disadvantages in this blog too.
Advantages
Disadvantages
Advantages
Time-Saving
Whether you’re a novice or a professional, it can take a while to get to grips with bookkeeping and to stay on top of them. That includes using software for the Making Tax Digital (MTD) initiative and understanding the different terms.
By outsourcing your business’ bookkeeping, you can save yourself plenty of time by handing it over to a professional to do it all for you.
However, there are some apps out there now (like EasyBooks) that are super-easy to use and provide plenty of useful content in the form of blogs and glossaries to help you do bookkeeping yourself. Believe it or not, even HMRC offers free guides and workshops for you to try bookkeeping yourself.
Expert Services
By outsourcing your business’ bookkeeping, you get access to a pool of talented professionals that live and breathe bookkeeping. As they specialise in this, they’re the perfect resource to make sure your projects get done on time.
Plus, you can trust they’ll get the job done as they need to hone their skills to keep up with their own competition. Although, you don’t need qualifications or a degree to do bookkeeping yourself.
One Less Thing to Worry About
We understand that bookkeeping can be a dull headache every business owner wants to avoid. That’s why outsourcing this task can be perfect so that you have one less thing to worry about.
The professionals can take over and you won’t be rushing around ahead of tax deadlines. Instead, you can put your feet up knowing that there’s a professional there to keep your books in check. You can use that valuable time to help your business grow in other ways.
Disadvantages
Less Control and Visibility
When you do your books in-house, you have a clear overview of what’s going on when monitoring the process. If there’s a problem, you can sort it out yourself right away without waiting for your bookkeeper to flag up the issue when it could be too late.
It’s not a good feeling being at the mercy of an outsourced bookkeeper. If you want to have day-to-day visibility of your books and maintain that control, then you’re better off not outsourcing your business’ bookkeeping.
Security Risks
Bookkeeping contains sensitive data. If you have absolutely no problems handing off this information to an outsourced professional, you’re quite brave. When you outsource, you’re giving insider knowledge to arguably the most important part of your business.
You might have done your research through reviews and meetings. Although, there’s no 100% guarantee that your data can’t be compromised when you outsource business bookkeeping.
Sometimes, it’s safer to know nobody has access to this sensitive information for that extra peace of mind.
Time and Distance
The fact is, the bookkeeper you choose to outsource to is going to have more clients just like you. That means they’re not going to be available at the drop of a hat. Instead, they’ll probably get in touch at a time which suits them best.
Think about how much can potentially go wrong by then, especially if you’re approaching crucial deadlines. If you like to be hands-on, then this possible lack of communication and regular updates isn’t going to do you many favours.
So, any questions you have probably won’t get answered right away.
A Waste of Money
It sounds blunt, but it’s true. Outsourcing your bookkeeping can be a waste of money for your business. We get it, you work hard for your business and with the taxman taking a big slice of the pie, who wants to give up even more money for a task you can do yourself?
Plus, think about the possible hidden charges you can face - especially if you’re locked into a contract. As we mentioned, you don’t need fancy degrees or formal qualifications to do your own bookkeeping. As long as you know how to get started, it’s quite easy to do, provided you stay on top of the process yourself.
The best part about it all is that some apps have been designed to be as simple-to-use and understand as possible. You won’t have to understand confusing jargon and you won’t have to pay for features you’re probably never going to use with the EasyBooks bookkeeping app.
By keeping it in-house, you not only stay in control of your books but you also save money in the process.
Regardless of the industry you’re in, doing your books is unavoidable. It makes sure the business is running smoothly, the finances are accurate and keep HMRC happy and off our backs.
Save Costs and Stay in Control With a Bookkeeping Checklist
When you know what you’re doing, bookkeeping can be a walk in the park. If you’re wondering how to get started and maintain staying on top of your books, then our handy checklist will be a lifesaver.
The checklist is full of useful tips, from how you can get started to the key features a bookkeeping app should include. To get your free copy, click the link below.
