Misconceptions about Outsourcing Accounting Services

Making up conceptions about things before actually doing it is good; it proves that you have tendency of foreseeing things!!

But conceptions may become misconceptions if you do not try authenticating your thought with facts. Similar is the case when it comes to outsourcing accounting services for small businesses. Many people have certain misbeliefs in their minds regarding outsourcing accounting services for small businesses. They are hesitant about it and spend their lives dealing with the complexities of accounting on their own. Where they could have run their ventures on a very smooth node with much more proficiency and expert guidance of accounting, they waste away their valuable time and resources in supervising unnecessary accounting procedures.

How about discussing few points which are absolutely mistaken when it comes to outsourcing accounting services for small business:

1. Too expensive of a service to take up:

While thinking of outsourcing accounting services for small businesses, business owners often go on to believe that it would be way beyond their affording capability and hence tend to take a back step. You need to know that when you outsource accounting services for small businesses, you pay them on hourly basis; i.e. payment according to the number of hours they have devoted to your accounting tasks. Now, that sounds really sensible and economical too!!

Accounting hassles tacked at an economized rate

2. Outsourcing accounting services is merely for large businesses:

'Outsourcing accounting services is only for large businesses' – This is simply a myth and shouldn't be abided by. Did you know that the outsourcing concept first came into existence exclusively for small businesses just because they couldn't manage it all at a time? Believe it or not this is true. In fact 40% to 60% of the accounting service providers cater to small businesses rather than large businesses.y.

3. Complicated procedure to handle:

When it comes to outsourcing accounting services for small businesses, people always get skeptical about the convoluted process that needs to be handled while getting a task done. For e.g. Sending files, getting a certain report ready, queries on calculations etc. are thought to be quite complex and tiring; but isn't that way. The accounting firms generally have a full-fledged back-office set-up, software and systems in place to assist you at each step.

4. Difficult to trust:

This is probably the one of the biggest delusions that business owners have during outsourcing accounting services for small businesses. They think that it would never be safe to trust an outsider in the affair of accounting as it includes delicate matters of transaction of money, company's facts and figures and other confidential information. Although it is never like that. Accounting service providers are a bunch of professionals who know how to handle your secret files with utmost secrecy and prevention of leakage.

5. Fear of things going out of control:

Outsourcing accounting services for small businesses does not mean that you will lose control over the accounting affairs of your little venture. Most people think that by outsourcing gradually the switch to accounting would be snatched away and they would be completely unaware of the tasks going on in his organization. But accounting firms are very cautious at it; they keep a regular tab about the happenings and keep you updated about the same on a daily, monthly and quarterly basis.

6. Timing concerns:

This is another concern which entrepreneurs have while outsourcing accounting services for small businesses. They panic about the time management factor thinking that if the time zones of the service provider vary from that of the business owner's, it might get very difficult to contact and keep a trail of the activities done and pending. Here, the entrepreneurs ought to know that with this rather they get a 24*7 support and work gets accomplished easily within the cycle.

7. Security is an issue:

Business owners have skepticisms on the security part offered by the accounting service providers. We all know that outsourcing accounting services for small businesses isn't a laidback job and needs a lot of alertness. Hence, people are constantly worries about the security of their data and do not feel secure enough to hand-over the same to a third party. Negating this misconception, one must realize that specialized accounting firms are equipped with security software to ensure safety and safekeeping of their clients' data.

8. An accounting software should do it all:

Small businesses must understand that software like Quickbooks is not adequate to manage accounting single-handedly. Accounting of small business needs a lot of precision and excellence. Kitting up with one software will not meet the intention and ultimately might result to some major blunders and slipups. Therefore outsourcing accounting services for small businesses is forever a better idea!

9. Finding an accounting outsourcing service provider is a grim errand:

Outsourcing accounting services for small businesses is much of a tranquil task if worked upon that way. It will never be a grim errand if you know what you want. In other words, you should be clear about the size of your company, the kind or volume of task you have, the number of hours you want the virtual accountant to work for you and of course your budget. If your ground rules are fixed, you are good to go!

10. Coordination and completion of tasks gets intricate:

As discussed in the earlier points, people are suspicious about coordination and completion of work due to time zone difference or complicated procedure. But they must remember that these service providers strongly focus on facilitating best possible services in a timely manner.

11. Outsourcing does not serve the purpose entirely:

When it comes to outsourcing accounting services for small businesses, entrepreneurs think that apart from an outsourced accountant they would require an in-house accountant anyways because the service provider would not or will render a full-time service. Whereas in actual scenario account ting outsourcing services extend end to end support to their clients.

12. They may lack seriousness about the job:

As the accounting outsourcing services act as a third party, most businesses contemplate them to be non-serious about their work. They think that the accounting firms might not take the ownership of the work and function very casually. Needless to say that these service providers have the most pro bunch of employees; thus are very sharp and expert at whatever they do.

January 25, 2017