There persists a long debate between which service option a firm should choose. Should you select Hiring Outsourced bookkeeping services or using in-house Bookkeeping? The question can put many accountants in a perplexing state.
There were barely any hi-tech technological innovations such as the Internet and cloud computing in the bygone times. Business firms made use of locally available resources and service providers in most situations. They hired employees to work for them on-premise. Hence, Insourcing is conventional practice for most business entities around the world.
Now, however, the time has flipped for good. Crackerjack computing and communication technology have brought forth an incredible transformation in the 21st-century world. Also, by the end of 20th century, the globalisation and liberalisation policies changed the paradigms of the business world. Outsourcing services became a reality for business enterprises globally. Accounting and Bookkeeping Outsourcing Services have turned into prominent business models for accounting firms.
“At the end of 2019, the Businesswire report stated that the global accounting and bookkeeping outsourcing market stood at a value of over $574 billion.”
It is a human tendency to resist change. Deviating from traditional business methods, such as in-house hiring, may seem ambiguous at inception. But, all ambitious business firms know the importance of evolving their business to thrive in the market. In case of developed nations like the UK, the US, and Canada, many accounting firms and CA practitioners find it tough to hire in-house bookkeeping and accounting teams for every need.
In the past decade, the remote working system is becoming an increasingly popular trend in town. In 2020, even the unforeseen outbreak of the coronavirus has led many to choose virtual working models over the usual in-house engagements. A vibrant outsourcing industry exists in the South-Asian continent for accounting firms based in the UK and the US. Many accountants are pointing towards the direction of outsourced bookkeeping services in contrast to Insourcing.
As we know, Bookkeeping is a critical service for every business. Hence, we all want to make an accurate decision regarding the hiring option to choose from. Let us find out the salient aspects of outsourced bookkeeping services in comparison to hiring an in-house bookkeeping team. These points will help you to attain an enhanced clarity about which path to pick for your firm.
- The overall cost of outsourced bookkeeping services as against in-house bookkeeping
The money factor is perhaps the most fundamental factor for most businesses. Accounting firms who choose outsourced bookkeeping services will notice their total cost plunge for the better. Most renowned companies delivering bookkeeping outsourcing services are located in countries like India and China. These nations have an abundance of cheap and skilled labour. You can reduce your bookkeeping cost by 40-50 percent as a result of outsourced bookkeeping services. Small and mid-scale accounting entities can significantly gain a great advantage. Outsourcing companies also deploy scalable services, and you can use various payment models for hiring their services. Outsourcing companies maintain a robust techno-stack with numerous software options for their clients.
In the case of In-house Bookkeeping for firms in the UK and the US, the labour expense is relatively high. Also, the cost of maintaining a proper infrastructure such as rent and office equipment is sizeable. For many budding accounting firms, such huge investment can be back-breaking. A giant-sized firm may prefer an in-house team of bookkeepers, but it is quite viable for most to choose outsourced bookkeeping services.
- Accessibility to the skilled and professional workforce in bookkeeping outsourcing services vs. in-house Bookkeeping
Leading firms who supply bookkeeping outsourcing services possess impressive experience and expertise. They deal with the bookkeeping needs of numerous accounting firms, CAs, and CPAs around the world. Hence, when you choose outsourced bookkeeping services, you find the guidance of highly qualified professional bookkeepers and accountants. They deliver high accuracy and timeliness in their services. You get the opportunity to derive value for money services through outsourcing.
As a regular accounting firm, it is challenging to get a competent level of expertise locally, as found with outsourcing. You will not find similar strata of expert bookkeepers at an affordable price in countries like the UK and the USA. In-house Bookkeeping may not get you the upgraded services available with outsourced Bookkeeping, which can be disappointing.
- Reduced hassles of hiring and training employees due to bookkeeping outsourcing services over in-house Bookkeeping
When you hire employees in-house, you need to invest both money and time in your employees’ recruitment and training. In-house hiring and recruitment can be a cumbersome process for many accounting firms. You need time to allow your workforce to get acquainted with your business practices and software systems.
The mode of bookkeeping outsourcing services eliminates the stress of hiring an entire team of bookkeepers. You have access to a readily available group of pro-bookkeepers when you collaborate with an outsourcing company. They are trained to handle complicated bookkeeping matters and to operate leading bookkeeping software systems.
- Maintaining Internal controls while using outsourced bookkeeping services in contrast to in-house bookkeeping services
Internal control is critical to enable smooth and accurate functioning of the bookkeeping work. When you hire an in-house team of a few bookkeepers, the possibility of fraud is quite higher. While most outsourcing companies sign stringent contracts and comply with data security standards to prevent fraudulent practices. The internal control system in notable firms delivering bookkeeping outsourcing services is more reliable.
- Increased productivity and competency in your business with outsourced bookkeeping services in comparison to in-house Bookkeeping
Bookkeeping outsourcing services provide you the opportunity to leave your bookkeeping demands in able hands of a specialised team. You have the time to concentrate on the core business activities of your firm. A work-life balance is simpler to maintain with the backing of outsourcing services. You can also benefit from an increased competitive edge. Firms who outsource their work have a better competitive advantage in the market against their counterparts.
In-house bookkeeping needs may eat up a lot of your time. You may witness your core projects can get adversely affected. It becomes strenuous to obtain higher efficiency while juggling between Bookkeeping and several other business tasks. You may also lose your competitive edge in the market.
Thus, the support of outsourced Bookkeeping allows you to enhance your productivity levels and grow your business ahead.
Bookkeeping Outsourcing Services can help Accounting Firms Ace their business game!
The factors like low outlay, access to seasoned bookkeeping veterans, competitive advantage, and better work productivity make outsourcing quite appealing. The overall decision of outsourcing or Insourcing is mainly subjective to the business conditions of an accounting firm. In-house Bookkeeping is surely more cost-intensive than outsourcing. However, there is a question of reliability and security for many in outsourcing. You must make your ultimate decision based on your budget, scale of operations, and client expectations.
Initor Global stands as a striking provider of Outsourced Bookkeeping Services for accounting firms!
Get stellar bookkeeping outsourcing services with the leading outsourcing company in India, Initor Global. Our team of bookkeepers can cater to the needs of diverse accounting firms and CA practices in the UK. You can gain the attractive advantages of outsourcing with our services. We possess the experience of more than a decade in managing the accounting and bookkeeping needs of different firms. Let us handle your bookkeeping needs! Contact now!