Do you procrastinate when it comes to doing your bookkeeping? Between operating your business, marketing your business, and spending time with family and friends finding the time to keep your financial records up to date is a daunting task. So, you think it’s time to get some help.
Should you hire someone to work in the office or outsource your bookkeeping? What are the advantages and dis-advantages of both?
- Transactions are entered into your accounting software system on-site
- Original documents stay on-site
- You have an employee in your office to assist with other tasks
- Cost – employer taxes: medicare, social security, federal and state unemployment, worker’s compensation insurance
- Reporting requirements – payroll returns, census burea surveys, worker’s compensation audits, new hire reporting, Affordable Care Act’s (Obama Care) reporting requirements
- Space – office desk
- Equipment – computer, phone, calculator
- Software – license for the each software for the user
- Education – training on office procedures and on-going training for the software
- Cost – no employment taxes – outsourced bookkeeper pays their own taxes
- Space – work done at outsourced bookkeeper’s location
- Equipment – outsourced bookkeeper has their own equipment
- Software – outsourced bookkeeper pays for their licensing needs
- Education – outsourced bookkeeper pays for their own education for keeping updated on software and other laws
- Flexibility – use the outsourced bookkeeper only when needed
- Communication – the outsourced bookkeeper is not sitting in the next room available to answer questions immediately
- Quality – may suffer depending on the outsourced bookkeeper’s knowledge and experience
As you can see there are more advantages to outsourcing a bookkeeper than hiring an in-house bookkeeper. You only need to outsource the parts of the bookkeeping that you don’t want to do, don’t have time to do, or know how to do. Your outsourced bookkeeper can work as often you need them to work: daily, weekly, monthly or annually.
You will save money, which is the ultimate goal when outsourcing!