But the question most small business owners are pondering over is: Does hiring a bookkeeping and accounting service provider make sense for small businesses? Judging the answer to this question is tricky and requires evaluating the pros and cons of outsourcing accounting.
There are advantages attached to hiring an outsourced accounting service provider which are especially applicable to small businesses:
- The main advantage of outsourcing accounting functions is its cost effectiveness, which can save your small business up to 40% costs as compared to in-house staff
- Accounting service providers have expert staff who can handle all your small business accounting requirements with ease
- You can choose to hire only those services which are applicable to your business
- Outsourcing accounting frees up valuable time which you can dedicate to the core business activities
- You are relieved from the hassles of hiring, training and retaining in-house staff
- Is the bookkeeping and accounting service provider experienced in your industry?
- Can the firm give valid references of its current/past clients?
- Does the firm have a reputation of providing accounting services for small businesses?
- Can the firm assure a doorstep service if required or is it purely outsourcing company based miles away within US or outside US?
- Is the accounting firm ready to give written documents regarding guarantee of service, terms and conditions etc?
- Is the accounting service provider flexible enough to allow you to scale your bookkeeping and accounting requirements up or down?
- Does the firm providing outsourced accounting service have suitable data security measures to protect sensitive information related to your small business?
The advantages of outsourcing small business accounting far surpass the disadvantages of outsourcing accounting functionalities. If you work with the right service provider, it can become a valuable asset to your small business. As a small business owner, you should hence consider availing the services of a professional bookkeeping and accounting service provider so that they can focus on the core activities of the business and grow it appropriately.