Did you know that nearly 40% of all large businesses in the US and Europe now prefer to outsource bookkeeping? Outsourcing bookkeeping has not just become a trend, but is also a smart and cost-saving alternative to in-house bookkeeping. If your business has an average of 30-60 transactions every month, then outsourcing bookkeeping can help you reduce cost and minimize effort. If you haven’t been already outsourcing bookkeeping, here are ten good reasons why you ought to:
1. Lower costs
When you outsource bookkeeping to India, you can definitely expect to see a reduction of 20% to 40% in your operating cost. This is because of India’s low labor costs. A qualified accountant from India would cost much less than an in-house bookkeeping professional. Apart from helping you save tens of thousands of dollars, outsourcing is also an ideal way to get better financial advice and reporting from experts who have experience in the field of bookkeeping.
2. Lesser management headaches
Outsourcing bookkeeping will free you from the burden of managing in-house bookkeepers. The constant demands of an in-house team like training, hiring, directing or firing can take a toll on you and leave you with no time for revenue-generating tasks. Since your service provider will be handling the responsibility of hiring, training or replacing bookkeepers, you will be free to reinvest your precious time and effort into building up your business.
3. No hardware /software worries
As the popular saying goes, the things that you own end up owning you. With in-house bookkeeping, you have to keep a track of computers, software licences etc. Apart from the cost, you would also have to constantly troubleshoot your systems or update software. Outsourcing bookkeeping to India eliminates the need to invest on infrastructure or software.
4. Increase in-house efficiency
Outsourcing bookkeeping can give you and your team the spare time and extra energy that you so badly need. With the burden of bookkeeping out of your hands, you can focus on your sales /marketing team or any other area of your business that needs attention. With the sudden surge in your efficiency level, you can be sure to see an increase in profits.
5. Do the work that you love
You surely did not go into business for the love of managing books. If doing bookkeeping is robbing you and your staff of their passion and de-motivating them, then its time you outsourced. Outsourcing bookkeeping can help you stay motivated by giving you the freedom to do what you love doing.
6. Better value creation
By outsourcing bookkeeping, you would be restricting the number of hours of bookkeeping per month. With outsourcing, you will not have a full-time bookkeeper occupying a part of your day on every day of a month. With your books out of your hands, you can concentrate on adding value to your customers.
7. Save on infrastructure costs
As a business owner, you would know that rent is one of the largest fixed costs for a business. If you hire a team of internal accountants, there would be no space for your sales or marketing team that directly contributes revenue. Outsource bookkeeping and maximize every dollar of the rent that you pay.
8. Keep your books private
Outsourcing is the best way for you to keep your company’s accounting information confidential and away from internal stakeholders or your staff.
9. Unbiased financial advice
During a financial crisis, you would be required to make tough business decisions. A third-part bookkeeping service provider is sure to be more impartial than an in-house bookkeeper. This way, you can get unbiased financial advice from your bookkeeping service provider.
10. Benefit from improved control
Contrary to popular belief, outsourcing bookkeeping to a professional bookkeeping company can give you more control, in terms of the software that you want to use, the date by when you want the work to be completed and even how you want your reports to be accessed.
Do you know of any other benefit of outsourcing bookkeeping? If yes, please mention them in the comments box below.
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I really appreciate your article. Outsourcing Bookkeeping Operations is very easy and affordable for your business. You have given a good insight and a clear picture of why outsourcing bookkeeping services are important. Professional bookkeepers take care of everything as per ATO rules and regulations and more important is that things are done timely as you have very rightly said.Thanks for spreading your experience. That’s really inspiring.