Outsourcing accounting seems to be more and more popular, but there are still many small business owners who are hesitant to outsource anything – especially their accounting and finance functions.
We’ve put together a list of misconceptions and fears that are common, and here’s why you need to reconsider them.
Misconception # 1: “I can’t afford that!”
It’s hard enough to run a small business and keep it profitable. And the last thing you need is another recurring expense. But instead of focusing on the money that you could save by doing the accounting in house, think of all the time and energy you will waste. You’re an entrepreneur because you are exceptionally good at something. Focus on that something and let someone else take care of the nitty gritty of running a business. The opportunity cost is just too high.
Misconception # 2: “They won’t do as good of a job.”
You have a very personal interest in your business, and you make sure every job is done well. It may seem daunting to outsource accounting because an external party could never care about your business as much as you do, and so they simply won’t do as good of a job. The truth is however, that these accounting companies are experts at what they do. They have the most advanced technology, and years of experience. You’ll be surprised to find that they can get the job done significantly faster and better than you can!
Misconception # 3: “How can I trust them?”
Your business is your baby, and you can’t stand anything going wrong with it. However, what you may not have considered is that small businesses where one employee is wearing many hats are often infamous for fraud. You can protect your business by handing over the accounting to an external accountant. This provides a third party check on any unusual activities that may be occurring in your company.
Misconception # 4: “I will lose control over my business”
It seems scary to completely hand over something important like finance and accounting to someone else. Many business owners worry about being left out of the loop, not knowing what is happening in the business, or losing their position of financial control. When in fact, the results of outsourcing are poles apart. When you outsource, you have time to focus on key financial information like reports and decision making data. Leave the bookkeeping and report creating to someone else. Let’s be honest – we know you’ve never enjoyed reconciling transactions and chasing down receipts!
Misconception # 5: “My business isn’t big enough yet”
You may think that someday when your business is booming and you have a lot more work to be done, you’ll need to hire out accounting help. For now, the few staff you have are doing just fine. Outsourcing is for corporate giants, not for a little business like you, right? What you don’t realize is that outsourcing is perfect for growing small businesses. Unlike hiring your own employees, outsourcing is highly scalable. You can expand or cut back as needed. Your accounting functions can grow as fast or as slow as your business needs.
Misconception # 6: “It’s too hard to find someone”
Finding the right company is hard. But if you do a little research I guarantee you can find one that fits in your budget and provides exactly the services that your business needs. You can find the perfect company to help your business succeed and carry it through its growing years (and you can start right here at LucidBooks!)