What’s the Cost of Outsourced Bookkeeping?
- Business owners may worry that the cost of outsourced bookkeeping may be too high
- More often than not, building your own accounting department will incur more expenses than you initially anticipate
- Outsourcing is a tried-and-true way to save money by letting someone else handle human resource issues
- By outsourcing, what you pay for the financial processes you need someone to handle is a matter of contract
- SyncLedgers provides effective bookkeeping solutions tailored to the needs of each client
Many small business owners find themselves worrying about the cost of outsourced bookkeeping. They tend to think that contracting an outsourced service will add to their expenses. It’s true that purchasing any product or service involves a commitment. It’s important to look at that commitment in the full context of your business, though. More often than not, business owners find that outsourcing processes that aren’t their core competency will save them money both in the short and long-term. Let’s take a look at a few of the reasons why.
Expenses Associated with In-House Bookkeeping
First, we need to look at what it really costs to hire a bookkeeping team in-house. When you hire somebody to work on a particular process within your company, you’re not just hiring a person. Any hiring decision represents a commitment to take care of that employee in the same way as everyone else who works for you. People can’t work without stopping, of course, so you’ll have to make provisions for time off. Likewise, who’ll cover them when needed during those times? You have to provide attractive benefits. You’re also responsible for the taxes mandated by government authorities, not to mention all the overhead.
Not only that, but financial professionals within a company don’t usually operate alone. Bookkeeping and accounting very often are team efforts. The financial record-keeping and reporting requirements of most businesses, even small ones, can be too much of a burden for any one person to handle. Quite likely, that’s why you’re considering hiring someone in the first place.
Rather than just hiring a single person to take care of your business financials, you may end up needing to develop a team of at least five or six people. The roles they’ll carry out will include bookkeeping and accounting, but that’s not all. You may also need to have a controller and a Chief Financial Officer at some point, as well as a manager or two. As your company grows and operations become more complex, these roles will have to scale up as well.
Outsourcing Saves Resources
The famous instruction by Peter Drucker is “focus on what you do best, and outsource the rest.” There’s an important reason for this. While it may seem attractive to keep all of your processes in house, the costs of doing so tend to multiply, as we’ve seen. The cost of outsourced bookkeeping, on the other hand, is always directly related to the services you require.
“59% of companies surveyed cited cost reduction as their motivation for putting this into practice. Why? Outsourcing tasks to trained professionals allow you to stick to smaller budgets and only pay for what you need. This is usually far more cost-effective than hiring a full-time employee.” – Steve Mayne, for Entrepreneur.com
Outsourcing provides a solution to the issue of initially hidden costs. when you contract with an outsourced bookkeeping firm, what you see is what you get. you’ll have a set contract with defined benefits and features. you’ll pay the same for that contract from month to month, and you’ll get the results you expect. you won’t have to worry about managing individual people and their needs. that’s what the Outsourcing firm exists for.
Let SyncLedgers be Your Go-To Bookkeeper!
While the cost of outsourced bookkeeping will vary depending on the specific needs of your business, it’ll still be something you can count on. It may seem ironic, but Outsourcing your bookkeeping will make your financial management easier in more ways than one!
Contact us today to discover how we can provide specific solutions tailored to the financial needs of your organization.
