Updated: May 17
There are plenty of outsourcing companies but there is dearth of quality providers. We often meet business owners who are actually hitting the million-dollar mark so quickly that at a sudden point in their career with the mess created by company accounts brings them to a standstill. Where they can not run forward without fixing the financial mess created by them just because they were too occupied to fix the accounts in the first go and suddenly the burden of fixing their bookkeeping halts everything.
1. Your Company is too small
You should never think of outsourcing if you are a small business and your turnover is just equal to your salary as then it should be more relevant that you should do your accounting by yourself. This will help you save a lot of money. It would be very wise to account your time as your fee for accounting as this will compensate and reward you as a small business owner. Even though outsourcing services are cheap than an in-house accountant but it is proportional to the size of your business.
The fun of outsourcing lies in getting the best expert services because the end of the day the business owner did not start the business to become a bookkeeper. if they have to do it all by themselves They would have rather opted it as a career. With our experience at MHOS, we have come across many business owners who do not prefer to outsource their bookkeeping and accounting functions. Scared of privacy issues and keeping jobs in-house rather than giving to a so-called expert whom they have never met. We do not call them wrong in this because they may have had a bad experience whilst outsourcing such work or they may be out of the categories which we have mentioned below.
We still recommend that you should not outsource your accounting functions if you are one of those types listed below.
2. You love being conventional
Unless you are tech-savvy and want everything over your phone or tablet right on the go. Outsourcing may be a hassle for you. Some business owners love using the conventional ways and it becomes hard for them to absorb the new hi-tech outsourcing methods and they prefer sticking to the old conventional methods of collecting paperwork and making hard copies of files. Though outsourcing means giving the hard work to someone else but at the same time it's only for business owners who want to utilize the same time doing something better and rather expanding their business.
3. If saving money is your only reason
"Outsourcing is cheap” is a common notion in the world out there but let us tell you that by handing over the finances of your business to somebody who does not understand your business means you are giving the heart of your business in the hands of someone very inefficient. Just because they are charging a dollar less than what the other experienced company is paying. This may have consequences beyond your control. So, if saving money is the only reason for outsourcing then let us remind you you won’t be always on the right side. Unless you decide to mend your ways and find a partner who is cheaper than hiring an in-house bookkeeper or accountant. At the same time, experienced and experts in the accounting field can understand your business needs. Your goals should align with the goals of the company.
4. Confidentiality and control issues
We have met many small business owners who apparently control freaks. They have issues sharing their revenue details with anyone to take help from and have privacy issues. They should never ever think of outsourcing to any company. This sort of business owner won’t let anyone work even if they decide to outsource so better stay away from Outsourcing your accounts because you will end up harassing the service provider and end result would not be up to the mark.
5. If you are a jack of all trades and want to continue to be the same.
A small business needs a skilled owner, who should be an expert in hiring the right staff, great at marketing, logistics, and sales, a plumber at times, an electrician, and whatever a small business needs. you as a small business can not go out and hire people because of the cashflow issues. This is all good when you are starting out but if you have grown up to a level where the business affordability has increased it becomes important that you leave all those DIY habits to the professionals as this will only deviate you from doing what you are good at and that is getting more business. Some of the tasks should be left only to the experts and accounting is definitely one out of them all. Only the right accountant can give you a clear picture of your business growth and help you steer it in the right direction.