A lot of CEOs and owners depend on in-house bookkeeping and accounting to obtain their financial statements every month because it’s they’re go-to solution. However, with advance technology in latest years, traditional is not always the best when it comes to handling the economic position of your company.
In-house and outsourced services give distinct workflows when handling your company’s bookkeeping and accounting. While we know that outsourced bookkeeping and accounting is not correct for every company, if it fits the requirements of your company, it can often cost less and provide more knowledge than a traditional in-house accounting department.
Proper internal controls guarantee the accuracy, timeliness and correct classification of the flow of data into the accounting system during the correct period. It also offers a sequence of checks and balances that assist to decrease the danger of ripping off.
Your business has a greater danger of fraud when you have just one or two staff handling your books. The individual who pays the bills might be the one who reconciles the bank account, and you’ve just given them the keys to the bank because there’s no separation of responsibilities. They can steal and cover their tracks from you. And until it’s too late, you won’t find out.
Outsourcing helps to decrease the danger of fraud connected with accounting for your company because separation of responsibilities and strict steps are taken when delivering the business ‘ economic statements. Most outsourced businesses have two sets of eyes that review each step with distinct levels of employees working on one account.
The financial reporting method will look distinct for each company based on requirements, number of transactions each month, considerations of the sector and many other variables. In-house bookkeepers, accountants or controllers can provide reports to your company; however, you need to guarantee that they have the correct schooling, training and skill sets to provide close and precise reporting on a quality month-end.
Many times, in-house bookkeepers and accountants have other duties, such as human resources, that can take time away from their key accounting obligation. When this occurs, collections and financial reporting can be set aside as priority is given to data entry, invoice recording and bill payment. These reports are vital to the cash flow for a CEO or owner and help make decisions that impact the business.
Outsourcing your accounting and bookkeeping can assist to mitigate late, incorrect or meaningless economic reporting. You can choose precisely what you need for your company when you decide to outsource. Usually you wouldn’t have to fire them if you have a bookkeeper in-house.
Working with an outsourced service can often make current staff more efficient by creating streamlined processes and training them in best-in-class strategies. They can then report to an outsourced controller who offers supervision and the financial reporting of your company requirements can be produced. Financial reporting will be timely and precise when outsourcing because staffs are educated, experienced and concentrate only on their key work descriptions.
Cost is a major determining factor for many small and medium-sized businesses when selecting a bookkeeping and accounting service. A full-time in-house bookkeeper’s annual salary is roughly $45,000 and a full-time accountant’s salary is $60,000. Together, two employees cost over $100,000 which doesn’t consider for overhead costs.
Overhead costs add an additional 20% on top of an employee’s base salary and consist of; Payroll Taxes, Health Benefits, Insurance, Vacation/Sick Leaves, Placing Ads, Screening Interviews, Testing and Training of Employees. Your business won’t pay overhead costs when using an outsourced service; you only pay for what you need nothing more, nothing less.
The choice of bookkeeping and accounting service for your company relies on which company needs can be most supported. In-house bookkeeping and accounting may be correct for some companies, but many companies find it simpler and more cost-effective to outsource their economic requirements.
So, if you’re opting for outsourced bookkeeping services; Moruya Bookkeeping is done using all the latest bookkeeping tools, which gives us the option to see your fiscal calendar and key information through faster, better and in a more efficient way. Plus, from day one, you get your own dedicated, state-based bookkeeper, who will keep track of everything you will ask him to…
Online accounting, in real time, anytime and anywhere.
Our team of bookkeeping experts in Canberra provides you with the necessary assistance so that you spend less time on receipts and invoices – and more time on overseeing all the daily business operations of yours. We are using cloud-based software (Xero) as a nice addition to all other services, we offer, each of our clients gets their very own, secure portal, meaning that absolutely any client of ours can easily access all the information that you need about your business, on any device. We will make sure that you get an online, real-time stream of data on your cash flow and business performance, 24/7, from anywhere on the globe! Paper goodbye.
Whatever your business requires when it comes to bookkeeping, we’re with you all the way. Call us today: 0477656979.