Why do in-house accounting and bookkeeping teams fall short?
A small business owner is overworked whilst managing the multiple aspects of the business. Amidst this overload, the in-house accounting and bookkeeping in a small business often fall short of meeting the standards and coping with the tasks assigned. This can be a source of pain and concern for any business owner. Accurate Tax & Bookkeeping shares some of the challenges and setbacks that business owners face when it comes to in-house accounting and bookkeeping.
Finding, hiring, and retaining the right bookkeeper with the right skill set for the right money is an ideal scenario. But for a small business, the employee salary and benefits package is a big cost. Add to it a recruiter’s fee and the expense goes up by 30% at least. Training and constant up-gradation is another recurring cost.
Moreover, hiring one employee for a task that requires a team of specialists doesn’t work in the long run. Besides overwhelming the sole resource, the business’ financial integrity is at the mercy of the employee’s skill and knowledge. With the absence of internal controls, the risk for human error or occupational fraud runs high.
Outsourcing the accounting and bookkeeping tasks to a team of specialists brings down the cost dramatically besides eliminating the pain of hiring, training, and retaining an employee. It also mitigates the risk of human error and frauds dramatically.
Lower Quality of Work
Bookkeeping and accounting require strong mathematical skills, extensive experience, and keen attention to detail. In an ideal scenario, a team of a Bookkeeper, Staff Accountant, and Accounting Manager/CPA/CFO must be hired to ensure the accuracy and integrity of the financial information. This size of the team is not realistic for a small business.
So in a small business, an in-house bookkeeper is bound to become overwhelmed by the scope of work and is exposed to risks such as human errors and fraud. Without proper insight and quality control systems, the business becomes prone to very costly mistakes.
By outsourcing the accounting and bookkeeping tasks, the business owners free themselves from the worry of poor quality work and the resulting costs.
Hiring an in-house accountant with the requisite certifications and experience is a great start. However, time must be invested in systems and procedural training that includes staying updated on the evolving technology and financial laws. Without a formal training process in place, most bookkeepers’ skills and knowledge become outdated. Moreover, with all the accounting and bookkeeping tasks, the in-house accountants are barely left with any time to invest in any sort of training.
Outsourcing to an accounting firm gives small businesses access to larger teams of specialists that are constantly updating their knowledge and skill set.
Inability to Scale
New and small businesses do not need a big team of accountants, to begin with. But what happens when the business starts growing? The accounting needs also grow. However, it takes a lot of time to build a qualified team of accountants and not all small businesses can afford to hire a big team. Therefore, as the growing business’s accounting needs remain unaddressed, scalability becomes a challenge.
The finances start changing as the business grows and the demands on the in-house accountant continue to increase. And every time the business scales up, the business owners face the same challenge.
Outsourcing the accounting team can help scale businesses and help take care of a very big challenge for small business owners.
Accurate Tax & Bookkeeping Services specializes in handling financial needs for businesses of all sizes.
Greg J. Menia founded the tax preparation service company in 2010, having worked in business tax services since 1995. The team performs tax services for small businesses and large businesses alike, serving all areas around Tampa, FL.
Call (813) 655-9702 today for “accountants near me” in Brandon, Florida. Alternatively, contact Greg and the team at Accurate Tax & Bookkeeping Services by emailing [email protected] or visiting the offices at 710 Oakfield Dr. Suite 159, Brandon, FL 33511.