6 Misconceptions about Outsourcing Accounting Services
- Posted by: omesh
- Category: Finance & accounting
Are you into a startup business and thinking of outsourcing your accounting and bookkeeping work, but due to some common misconceptions and lack of proper understanding, you are hesitant? However, outsourcing your accounting and bookkeeping work will help you to run your business smoothly with more proficiency and allow you to focus on your core business.
The common misconceptions most of the startup companies have are outsourcing is only feasible for large organizations, you will lose control over the organization finance, no security of your data, accounting software will be sufficient, outsourcing is a difficult process and outsourcing does not serve the purpose entirely.
Let’s discuss the common misconceptions that most of the startup has:
- Outsourcing Is Only Feasible For Large Organizations :
Startup companies usually face scarcity of funds and for them outsourcing an accounting and bookkeeping work would be more expensive than in-house resources. However, outsourcing is flexible, economical and time-saving; you can pay the outsourcing company on an hourly basis which is reasonable.
- Fear of Losing Control over the Organization Finance :
Most of the startup businessmen have the misconception that if they outsource their accounting and bookkeeping work they will end up losing their control over organizational finance. However, most of the outsourcing firms provide a report on a daily, monthly and quarterly basis, which helps you to better understand the financial position of your startup business and also help you to take the best decisions for your organization.
- Outsourcing does not serve the purpose entirely :
Even after outsourcing accounting and bookkeeping work, startup companies thinks an in-house accounting expert is still required. However, accounting outsourcing experts handle everything related to your finances completely and carefully you just need to rely upon them.
- Accounting Software Will Be Sufficient :
As your business grows, business system and your finances will become more complex which will require advanced accounting software skills. So, considering an accounting experts who have both the advanced skills and adequate time necessary to keep your finances in order to achieve the end-results of your organization.
- Outsourcing is a difficult process :
Most of the startup firms think outsourcing accounting and bookkeeping work is a complicated procedure to handle; coordination and completion of tasks gets complex because of time zone difference. However, global operations spread across different time zones ensure 24 x 7 availability of workforce and helpdesk.
- Security is an issue :
Accounting and bookkeeping outsourcing companies value your privacy of your data. Moreover, accounting experts ensure confidentiality of your data and they know how to handle your secret files with maximum secrecy which prevents any data leakage. Also, periodic reviews and regular control audits are conducted in order to keep your data secure.
Due to some common misconceptions and lack of proper understanding startup companies hesitates to outsource their accounting and bookkeeping work. However, outsourcing will help you to run your business smoothly with more proficiency and allow you to focus on your core business.