7 Common Myths about Outsourcing Accounting and Bookkeeping Needs
Chances are you’re guilty, as are many businesspeople, of believing at least one of the many common myths about outsourcing accounting and bookkeeping.
The myths you may believe about outsourced accounting and bookkeeping mightn’t include the commonly held belief that outsourced accounting and bookkeeping takes place in sweatshop environments where slave-like workers are forced to crunch data for business organisations and receive inhumane remuneration for their efforts, though they’re likely to include at least one of the following.
Outsourcing accounting and bookkeeping harms the local economy
This is one of the most commonly believed myths about outsourced accounting and bookkeeping and indeed outsourcing in general; however, the truth is actually just the opposite.
By enabling business operations to operate more cost effectively, more jobs can be created and existing jobs are rendered more secure because outsourcing accounting and bookkeeping overseas or to other parts of the country, if the business doesn’t outsource locally as many do, helps to reduce operational expenditure which enables business organisations to, for example, better endure periods of sluggish economic growth.
Outsourced accounting and bookkeeping still requires in-house accountants
There’s no need for in-house accountants and bookkeepers when businesses outsource their accounting and bookkeeping needs and most business managers and owners are quite proficient at using computer programs like QuickBooks to keep records of their organisation’s financial data.
What’s more, when further financial services are required, the firm to which they outsource will generally be able to provide them with additional services.
Outsourced accounting and bookkeeping divulges sensitive information
This simply isn’t true because no reputable accounting firm – there’s still a need to outsource to reputable accounting firms so business organisations are advised to select the firm they outsource to wisely – would risk their reputation by divulging their clients’ information to unauthorised parties.
Moreover, most small businesses have no need to provide the accounting firm they outsource to with sensitive information, reputable accounting firms generally use customer specified accounting software and many provide their client base with a secure, encrypted web connection over which to transmit information.
Outsourced accounting and bookkeeping requires complex IT integration
Outsourcing your business’s accounting and bookkeeping needs hardly requires complex IT integration because all a business organisation needs to outsource their accounting and bookkeeping is a computer and an internet connection; in fact, they could easily get away with a smartphone and a 3G network.
Outsourced accounting and bookkeeping is only feasible for big businesses
This is a preposterous myth because big businesses are actually in a much better position to keep accounting and bookkeeping processes in-house than are smaller businesses like start-ups and SMEs.
The wages that accountants demand are, as you’d know well, rather high and that prevents the majority of small business organisations from employing fulltime accounting and bookkeeping staff.
By outsourcing their accounting and bookkeeping needs, small business organisations are able to keep expenditure competitively low.
Outsourced accounting and bookkeeping is less effective
Outsourcing a business organisation’s accounting and bookkeeping needs is just as effective as employing a fulltime accountant and it’s also more cost effective.
Business organisations can still access financial advice when they require it, albeit on more cost effective terms, as they still have access to a dedicated professional’s services.
Outsourced accounting and bookkeeping costs can spiral out of control
This is far from the truth and one of the most commonly cited reasons for outsourcing accounting and bookkeeping is to exercise better operational cost control over a department with traditionally high overheads when kept in-house.
By outsourcing their accounting and bookkeeping needs to dedicated accounting firms locally or overseas, business organisations are able to operate more cost effectively.
These commonly held myths are increasingly debunked as more and more business organisations outsource their accounting and bookkeeping needs to accountancy firms providing business set up services in Vanuatu and other tax havens around the world.
Outsourced accounting and bookkeeping has frequently been cited by many business organisations, especially start-ups and SMEs, as an excellent means of curbing overhead expenditure and operating in a more cost effective manner, so to overlook the benefits that outsourced accounting and bookkeeping presents to your business organisation would therefore be a mistake.