By: jnawali
Bookkeeping Services
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In-house versus outsourced bookkeeping, business owners have struggled with this decision. There is no “right answer” to this debate as both options have their own merits and demerits. But when you are a small business owner, this decision might be overwhelming yet crucial, whether to hire someone in-house or to outsource your small business bookkeeping to the experts.
But before we delve deeper into the discussion, let us find out what Bookkeeping means.
What is Bookkeeping?
In simple terms, Bookkeeping is the process of recording your company’s financial transactions into organized accounts daily. Bookkeeping is an integral part of any business, as with proper maintenance, companies can track all information on their books to make critical operating, investing, and financing decisions.
In-House Bookkeeping
What does in-house bookkeeping refer to? In-house bookkeeping and accounting are when a business and its employees perform their accounting activities.
Benefits of In-House Bookkeeping
The most significant benefit of employing an in-house bookkeeper to perform your accounting is the level of regulation and human communication you receive. By hiring a proper in-house employee, you are no more completely dependent on your PC. You can seek help from your in-house accountant instead of working by yourself without immediate guidance.
Employees tend to comprehend instruction better than outsourced companies. It gives you the ability to have your workforce perform additional tasks when they are not busy with bookkeeping.
Drawbacks of In-House Accounting
High Cost: This factor is crucial and can decide when choosing accounting services for your small businesses. Hiring an in-house bookkeeper can be an expensive decision. Since they will most likely be a full-time employee, you are not only responsible for their salary but also a lot of overhead costs such as insurance coverage, holiday pay, ongoing training, office space, and more.
Educating, Onboarding, & Hiring: Hiring a new employee can be incredibly time-consuming and hectic. Scouting for a suitable employee, training, and educating them on your business, style, and method of operation can take weeks, if not months.
Performance and Work Quality: Bookkeeping and accounting is a very complex task that requires meticulous attention to detail to ensure the smooth financial running of any business. This task of utmost importance can be too much for a single individual or a small team to manage, resulting in inaccurate numbers or mediocre performance.
Outsourced Bookkeeping
Outsourced bookkeeping is when a business hires third-party employees to complete the accounting and finance function of the organization.
Benefits of Outsourced Bookkeeping
Lower Cost: Instead of committing to a full-time or part-time salary, you can pay the outsourcing company precisely based on your requirements, à la carte approach. Choose a plan for monthly service which involves payroll, bookkeeping, and more, depending on your needs.
Advanced Bookkeeping Systems: Based on your requirements, most bookkeeping companies have expertise and knowledge of Artificial Intelligence to Machine Learning and the Cloud. Outsourced Bookkeeping companies have the latest systems and tools to ensure that every business’s needs are fulfilled with the best-suited option.
Knowledge of the industry: Outsourced bookkeeping services have a team of experts thorough with compliance and regulatory issues. Due to the cumulative experience, the outsourced bookkeeping professionals have more expertise in all aspects of accounting and bookkeeping than any in-house team. This business intelligence comes in handy when you have more time to expand your business rather than focusing on accounts.
Superior Quality Of Work: When you hire an outsourced bookkeeping service, a team of bookkeeping professionals will handle the most complex bookkeeping tasks. They have access to an automated system that increases transparency, makes the procedure seamless, and works under expert oversight to fix issues.
What is the Bottom Line?
Your small business bookkeeping is one of the most important pillars of your business. In our opinion, outsourcing your small business bookkeeping is a better option in multiple ways. Outsourcing gives you a better turnaround time, reduces payroll costs, gives you quality service, and gives you more time to handle the less mundane aspects of your own business.
Why Choose Apex Accounting For Your Bookkeeping Needs
Apex Accounting is the most reliable bookkeeping and accounting service provider in Toronto. Never worry about the financial situation of your business again with our accurate, up-to-date, and transparent bookkeeping process. From general journal entries to financial statements, we provide bookkeeping services tailored to the needs of your business. To learn more about us, call us at (647) 979-7728 or mail us at info@apexaccounting.ca.