Tips No. 001: Should I outsource my bookkeeping?

by Natasha Goldstein

Hello wonderful colleagues, clients, and friends. I wanted to start our first official Tip with the answer to a question I get all the time: “should I outsource my bookkeeping”?

If you Google “Should I outsource my bookkeeping”, you’ll find a plethora of blog posts from our competitors trying to convince you that you should *always* outsource your bookkeeping. Along the same lines, most of our competitors have a long table on their website listing the attributes of a good Bookkeeper. Below their company name is an uninterrupted column of wonderful “√” marks, and below the "In-house Hire" is a solid column of the dreaded “x”. I don’t love those tables… There are certainly cases where an in-house Bookkeeper makes more sense, and I never want to lead a potential client down the wrong road.

First of all, let’s go over what you’re getting when you “outsource” your bookkeeping. There are many different types of outsourced bookkeeping services, and each fits a different type of company. You really can’t compare them apples to apples.

There are options that start at less than $100/ month, and options that start at $2,000+. For a hundred bucks you’ll often get one bank account reconciled on a cash basis (not accrual), you’ll get a virtual contact you can “chat” or email (no calls), and nothing beyond that is provided. Often, these services are good enough for individual consultants and sole proprietors with very simple, light accounting and no payroll.

The higher end services, such as those offered by The Accountkeepers, will manage all your accounting and financial statement preparation, no matter how complex, along with payroll, customer invoicing, and bill payment. They offer a face-to-face team that is highly skilled and available on-demand. Often, these services are just right for growing companies, firms with inventory, firms that manufacture products, firms receiving government grants, and non-profits, among others.

In all cases, outsourced bookkeeping services are usually off-site/ virtual.

So, when should you not outsource your bookkeeping? If your firm has these traits, I would strongly consider an in-house Bookkeeper:

• You need your Bookkeeper to do a significant amount of other, non-bookkeeping, work on a daily basis. This could include answering the phones, accepting deliveries, or collecting the mail.
• You run a cash-heavy business and need the Bookkeeper to manage your daily intake and deposits.
• You don’t have anyone at your firm to manage the relationship with the outsourced Bookkeeper.

Of course, many businesses and non-profits don’t have these needs, so hiring a Bookkeeper in-house is not required. For them, outsourcing offers many advantages. The biggest benefits I see for clients who are partnering with The Accountkeepers are:

• A Team – which includes a Controller-level Accounting Manager and an experienced Bookkeeper.
• Quality Control – your Controller ensures even the most complex accounting work is accurate.
• Coverage – multiple professionals to provide coverage for vacations, parental leaves, etc.
• Technology Insights – your team stays on top of efficiency-gaining accounting and finance technology.
• Quality Bookkeepers – often the best Bookkeepers work for firms like The Accountkeepers, as we provide full-time opportunities, flexible schedules, and excellent benefits.
• Cost – significant cost savings versus an in-house Bookkeeper or accounting department.

So, as you can see, outsourcing the bookkeeping isn’t right for all businesses, but in many cases, it adds significant value and lowers costs. In either case, give us a call, and we can help you navigate the right decision for your company.