Any functioning business needs to account for its finances, both for themselves and for tax reasons. Yet, many businesses, both small and large are reluctant to outsource bookkeeping. One of the reasons, if not the main reason, are all the myths about outsourcing bookkeeping that exist, so here are a few of the most popular ones, along with the reasons they are not true.
Handing over control of your business
Many people feel that they will lose control of their business if they outsource their accounts, but the opposite is true. A professional bookkeeping service, such as Probookkeeper, will set out the financial position of your business in such a way they you can see more clearly what is going on with your money; where you are spending it, how much and what returns, amongst other things. This is vital if you want to improve your income. This allows you to change, tweak and otherwise expand accordingly, so actually it gives you more control, not less.
The cost of paying someone to do the bookkeeping often seems like a waste of money. After all everyone can add, right? Yes, everyone can add, but bookkeeping is about so much more than that. You need to do sales reports, profit and loss accounts, balance sheets, payrolls and tax returns, to name but a few. This can seem like a foreign language, and the right way to do these things is something you need to learn. This takes time, and that is time stolen from your own business. Time when you should be doing whatever your specialty really is, to expand your business.
Besides which, outsource bookkeeping probably costs a lot less than you think it does, so why not ask for a quote – you have nothing to lose and could gain a lot.
First, no one wants to share their financial details with others, but if you think about it, banks and all their personnel already know this and have always known. It isn’t such a big deal – provided the information is shared with a trustworthy bookkeeper with adequate security.
Outsourcing your financial work is usually safer than carrying your credit card with you. A reputable bookkeeping company will have the most up-to-date security available, and it will constantly be updated. What about yours?
“No one will care as much about my business as I do.”
True, but just think about your staff; they are working for a pay cheque at the end of the month. Many will care, just not as much as you, but that does not mean they will do inferior work. They will become involved in the business and want to make it work, but they will also want to keep their job. That means doing what you pay them for to the best of their ability.
Exactly the same applies to outsource bookkeeping. They will care about your bottom line, but without the emotion you may feel, so their opinion could be more objective, and that is a good thing.
An app or software that you can use yourself will work as well, won’t it?
Probably not is the answer.
Think about this – can you drive? Yes, then you could drive a formula one car couldn’t you?
No, it is more complex and different, yet both involve driving cars. Put Nigel Hamilton in a normal car, drive the same car and race him – who do you think will win? (It won’t be you, it will be the experienced expert.)
Bookkeeping software or apps will work, but unless you are an expert you won’t be able to use them to the maximum of their ability, even if you get a good one.
Also, these are impersonal. They will tell you that 2+2 = 4 and 4-1 = 3, but few will tell you the -1 is an unnecessary expense and should be avoided.
Remember you are spending money on software and then you have to do it yourself anyway. Why not ‘spend better’ and have a professional do the work?