In the business world, outsourced accounting is already a common practice. But are you really familiar with how the process works? If you own or plan to own a startup, it’s ideal that you know the ins and outs – the benefits that come with it, the overall costs, and so forth.
However, you may encounter some misconceptions as you go along. Nowadays, not everything we see, especially on the Internet, is true. Luckily, we are here to debunk some of the most common outsourced accounting myths so that you’ll get to make a more informed decision of whether it’s a perfect fit for your business.
Myth #1: Outsourcing Your Accounting is Too Expensive
Budget is a big concern among many startup companies. As much as possible, you want to look for ways on how you can cut back on expenses since you may not be earning a stable profit just yet. So you’re probably wondering, is outsourcing a good choice?
The answer is yes. Contrary to what many believe, outsourcing actually helps to save money. Think about it. If you opt to have a full-time employee on your team, you’re obligated to pay them a fixed salary regardless of their workload. Whereas, if you bring in an outsourced professional, the only amount you need to pay would depend on the services they rendered.
In terms of small business accounting, it’ll be wise to consider an outsourcing partner. Along with saving money, your business also gets the specialized knowledge it needs.
Myth #2: Outsourcing Your Accounting May Be a Security Risk
Emerging technologies are now becoming an integral part of most businesses. However, there are still some entrepreneurs who are a bit wary of fully integrating their financial data into one system because of possible security issues. Luckily, when it comes to outsourcing your business processes to service providers, that won’t be a problem.
Now you may be thinking that giving access to an external company is already a big risk in itself. But you should know that outsourced accounting firms like Peach BPO have years of experience working in various industries. We are aware of the proper security measures and own the latest software, so your data stays protected at all times.
Myth #3: Outsourced Accounting is Just Similar to Data Entry
Bookkeeping and accounting go hand in hand, but they are not the same. Bookkeeping is the process of recording the daily transactions of a company, while accounting is done by analyzing the recorded data. It is a longer task to accomplish because apart from verifying the provided information, accountants are also responsible for generating financial reports. They assist with forecasting business trends and possible growth opportunities.
If you plan to outsource these services, you should keep their differences in mind. Not all bookkeepers are qualified to perform accounting duties. If you need help in getting started, you may schedule a consultation with experts like us. We will take a look at your current financial practices and provide you with suitable solutions.
Myth #4: Outsourced Accounting is Only For Big Companies
Although it may seem like outsourcing companies are more inclined to work with large corporations due to stability and bigger budgets, they actually consider small and medium-sized businesses as a top priority. This is mainly because of their strong growth potential.
Take your startup for example. You are still in the early stages, so there are a lot of possibilities to explore. It becomes easier for companies like us to establish a long-term partnership with your organization. We get to know your financial goals and help you work towards achieving them.
The Secret to Growing a Successful Business
Entrepreneurs rely on a lot of people, mostly outsourced professionals, throughout their business journey. But if you own a startup, you may be a bit hesitant to reach out for external help. You’re probably worrying about the overall costs, potential security risks, and the idea that you may not be prioritized because there are bigger corporations out there.
However, Peach BPO is here to tell you that outsourcing is actually an ideal choice for companies like yours. The financial services we offer are specifically suited for small to medium-sized businesses. Whether you want to scale up or down, we make the necessary adjustments to ensure that we are providing you with what you really need. In that way, you save money and learn about the proper financial practices that can set you up for success!
Send us a message or book a consultation to find out more.