Managing accounts is such a great headache, and many top companies usually keep professionals for this job. But if you have a small business, you might be confused about whether you should keep a bookkeeper or handle on your own.
Here, we will go through some pros and cons of choosing bookkeeping as a service or not.
Pros of Bookkeeping as a Service
A bookkeeper is a finance professional who handles all the accounts and all financial records for a business for daily transactions. They also keep good notes on taking follow-up on all the pending bills, their reminders, payments, payrolls, and more. Here are some pros of hiring them.
They Charge Less Than Accountants
Bookkeepers and accountants both do similar tasks at some point. Bookkeepers keep records of each transaction. They are proven to be highly efficient on the first line of accounts in small business.
Meanwhile, accountants can record your transactions, analyze those transactions, tell you about the trends, or give you tax-related information or advice. However, if you don’t feel like to hire an accountant, hiring a bookkeeper would be a good choice. Plus, they usually charge less than accountants.
They Have Better Expertise Than You
If you are hiring a bookkeeper with good experience, you’re investing in your business. They know how the all-finances work and what challenges or risks a small business could face. However, anyone can do a little bookkeeping to some extent, but you can’t assure accuracy and speed. A highly trained bookkeeper can do all the tasks in no time with accuracy.
Saves You Time and Efforts
If you have a bookkeeper, you don’t have to ask any of your other employees to do this task, neither you have to. This will save them time, and they will be able to focus on their own work, which ultimately increases their productivity.
Additionally, you don’t have to worry about anything. You will have a fully organized sheet to analyze your profits and losses.
Highly experienced and skilled bookkeepers can provide valuable insights by analyzing your financial data. They can identify trends, suggest cost-saving measures, and help with budgeting.
They can assist in organizing your financial records, making tax preparation smoother, and potentially helping you maximize deductions and credits.
Cons of Bookkeeping as a Service
Add An Additional Payroll
Although a bookkeeper will charge less than an accountant, you’re adding an extra employee. Hiring a skilled bookkeeper can be expensive, especially for small businesses with limited budgets. You’ll need to consider their salary, benefits, and any software or tools required for the job.
Loss of Control
Outsourcing bookkeeping means giving someone else access to your financial data. Some business owners may be uncomfortable with this loss of control. While most bookkeepers are trustworthy, there is a risk of data breaches or chances of misuse of sensitive financial information. It’s important to choose a reputable and trustworthy bookkeeper.
Finding the Right Fit
It can be challenging to find a bookkeeper with the right qualifications and experience for your specific industry and needs. Miscommunication or a lack of understanding between you and your bookkeeper could lead to errors or misunderstandings.
Relying on a bookkeeper means you may become dependent on their expertise. If they leave or are unavailable, it can disrupt your financial management.
What Types of Bookkeepers a Small Business Can Hire
Small businesses have several options when it comes to hiring bookkeepers, depending on their specific needs, budget, and preferences. Here are some common types of bookkeepers that small businesses can consider:
- Full-time in-house bookkeeper
- Part-time in-house bookkeeper
- Remote or virtual bookkeeper
- Outsourced bookkeeping firm
- Freelance bookkeeper
- Online bookkeeping services:
- Hybrid solutions (in-house and remote bookkeeping services)
- Certified public accountant (CPA)
Alternate Solution for Manual Bookkeepers: Receipt Bot
Whether you’re a small business owner, self-employed, or a sole trader if you’re looking for a hassle-free way to manage your bookkeeping, meet Receipt Bot! This simple yet powerful app is designed specifically to meet the bookkeeping needs of entrepreneurs, accountants, and small businesses like you.
With accurate OCR data extraction and a user-friendly interface, Receipt Bot can transform the way you handle your business finances. See how:
- It comes with an Android and iOS mobile app that allows you to record expenses on the fly. Just scan the receipts from your smartphone, and it will automatically fetch and fill in the data to your account.
- It automatically categorizes your expenses based on vendor type and transaction history.
- Its advanced validation system can detect anomalies and errors, helping you maintain clean and error-free financial records.
- You can simply forward your invoices to your business inbox, and they will automatically be sent to your account.
- Receipt Bot employs advanced machine vision technology to extract data accurately from your receipts and invoices.
- It offers team collaboration features as well. Multiple users can record expenses and claim reimbursements within a single plan.
Hiring a bookkeeper or choosing bookkeeping as a service is worth the cost only if you’re getting good results with good productivity. Make sure that you are hiring a well-experienced professional for this role.
If you need the cheapest and best option, Receipt Bot is best with its 99.9% accurate data extraction for you. Visit here to learn more about its services.