Bookkeeping is a critical part of any accounting department in a business. The titular books refer to the financial records of any business, which is why educated experts exist to handle such important tasks.
Unfortunately, there are a handful of common myths about outsourced bookkeeping services that can cause confusion among business owners. Keep reading to learn those myths and the truth so you can determine why outsourcing bookkeeping is a good move for your business.
“Business Owners Can Handle Books on Their Own”
Keeping track of your books may seem simple at first, especially compared to all the effort you put in to start and maintain a business. This creates one of the most common myths on this topic, and that’s assuming you can handle bookkeeping solo.
Of course, it’s understandable for business owners to feel this way. After all, if they can do their personal taxes at home, then what’s the difference at work? Well, they are actually quite different, which is why it’s important for business taxes to be carefully completed by someone with an education in that topic. Not only is this done to ensure the accuracy of the information, but also to assist with finding deductions that you may not have otherwise known about.
For example, costs such as rent or utilities are tax deductible for businesses, and your bookkeeper may be able to help you take advantage of such opportunities. Make sure to always clarify with the bookkeeping service provider how extensive their service is. They may have multiple packages offering different services, so always find the one that fits your business needs most effectively. This brings us to the next myth regarding bookkeeping services, and that’s the impact on workflow.
“It Will Hinder Your Efficient Workflow”
Another benefit of a bookkeeping service is that they dedicate their time and effort to your bookkeeping, whereas a business owner’s job already includes many different responsibilities. There is understandably a fear of outsourcing because you then have to rely on that service provider to be as efficient and timely as you desire. Don’t worry, since a good bookkeeping service will keep your time and focus in mind every step of the way.
Choose your service provider carefully by having conversations and looking at feedback from other clients. That way, you can find someone who is as time-oriented as you are. One of the key goals of professional bookkeeping is to help business owners focus more on what they need to do, while a trained expert oversees your transactions and other financial information. Instead of hindering workflow, bookkeeping services should naturally weave into your schedule. Someone must maintain the books, so it helps to put that responsibility in the hands of knowledgeable experts solely focused on that task.
“Bookkeeping Is Only Important During Tax Season”
Given the importance of bookkeeping to tax preparation, some business owners assume that this service is only essential during tax season. Tax Day is undoubtedly when a bookkeeping service’s hard work will pay off most substantially. So, why would you need to hire a bookkeeper for the whole year? Working with a bookkeeper is most effective as a year-round partnership because of the time and accuracy it requires.
If you want that hard work to yield the best results, give your bookkeeper more time to prepare your information and file accordingly. One misstep in record keeping can create chaos when it comes time to file taxes. By having an expert oversee your records all year round, you can ensure that everything is accurate and ready for Tax Day.
“It’s an Expensive Investment “
A substantial misconception about bookkeeping services is that they are too expensive. For instance, if you’re a business owner who just sees record keeping as quick data entry, then you won’t see the true value of the service. Bookkeeping isn’t about having an expert come into the office and get everything done in a single afternoon.
You can ultimately save money by investing in quality, long-term bookkeeping services. As mentioned above, you can work with your bookkeeper to get everything ready for certain tax deductions you qualify for. In addition, the benefit of working with a bookkeeper with multiple service packages is that you can choose what makes sense for you financially. Bookkeeping may seem simple at first, but when you work with your first expert for a year, you will clearly see why you invest in their expertise.
“You Must Outsource Bookkeeping From Overseas Companies”
One of the most common myths about outsourced bookkeeping services is undoubtedly the thought that it must be done with a company in another country. Outsourcing is frequently used in connection to a company that is pushing a service to a provider in another country, but this is not the only scenario. Outsourcing can happen domestically too, and your options include highly experienced individuals. Outsourcing means that your work is coming from an outside source, as in outside of your company, but that doesn’t have to mean outside of the country.
Our team here at Accutax Business Center is in the United States, and we’re equipped to provide reliable bookkeeping services
for businesses. If you want to outsource to a company located in the US for convenient communications and other preferences, you can certainly find a solution to match.
“Your Information Will Become Less Secure”
Whether your bookkeeper is overseas or in the United States, security may still be a concern. After all, bookkeeping involves having a third party come in and access sensitive financial information. This step should be taken carefully by any business owner, but the idea that outsourcing inherently puts your company’s security at risk is absolutely a myth. You can work with a bookkeeping service without allowing sensitive data to fall into the wrong hands.
Again, it all comes down to working with qualified, reliable bookkeepers in the industry. If you give your financial information to any random person saying they’re a bookkeeper, then you’re running significant risks. However, if you find a reputable bookkeeper—and they certainly do exist—then you can rest assured that they’re upholding industry standards to handle data carefully. That said, remember that security must be upheld by both the bookkeeper and business owner to ensure the best experience. Security can be maliciously violated in many ways for companies, so having great data security and working with like-minded third-party companies is essential. Look into your bookkeeping options today to get a closer look at how they can influence your business for the better.
