When trying to manage every aspect of the business as a business owner or CEO, some things can quickly take a wrong turn. Unfortunately, when things get out of hand, some may not realize until it has gone excessively far. All too often proper management of a business’s bookkeeping and accounting are neglected. Where many do not feel that bookkeeping is a priority task, they concentrate on building up the brand or closing a sale. The finance function of your business should be important as it is a vital piece of the business’s success. Today, we at Mark Dicus & Company would like to further elaborate on outsourcing your bookkeeping.
In House Accounting VS Outsourcing
It is common that the bookkeeping process is delegated to a single person for small companies. Especially so if the employee is not properly trained for the role, bookkeeping responsibilities can be quite daunting. In order to understand the financial health of your company, maintaining records in some semblance of order is extremely vital. A few of the usual problems associated with having an employed bookkeeper is difficulty finding a competent bookkeeper, taking the time to train only to have high turnovers, delegating bookkeeping tasks while balancing the original hired duties, as well as struggling with cost management.
Eliminate Single Point of Failure
Where the biggest payoff comes when the business owner is no longer consumed with the books by hiring an exclusive bookkeeper, hiring and retaining the right bookkeeper with the right skill is a feat on its own. With there being no system for internal controls to mitigate risk for human error or occupational fraud, a single employee means a single point of failure, unfortunately. There are other vulnerabilities with this approach and can end in crisis, especially when it comes to taxes.
Bookkeeper in Training
Time must be invested in systems and procedural training, regardless of their background once a qualified bookkeeper is hired. Most bookkeepers are left to their own devices without a formal training process in place. Taking the time to train means the owner or manager’s day for training means they are neglecting their other tasks. Without a proper and efficient introduction to your accounting procedures, even the minor coding errors can develop into lost revenue.
Manage Workload of Employees
Small and growing businesses face limited resources, including employees. More often than not, small businesses do not have the budget for a full-time bookkeeper much less an entire accounting department. Regardless of their accounting knowledge, bookkeeping duties are delegated to another employee, making their time stretched thin. With human errors and even fraud, there are many problems that can surface when one employee has too much on their plate.
A significant impact on small businesses is the costs related to bookkeeping. Most business may be able to afford one bookkeeper, and sometimes, only part time. But with other options, the costs in trying to hire a bookkeeper and repairing any human errors or fraudulent activities can cost more down the road.
Bookkeeping, Accounting Services & More in Walnut Creek, Daly City, San Mateo, Palo Alto, Mountain View, San Jose, Pleasanton & Greater San Francisco, California
Ultimately, the best solutions for your business is to outsource your bookkeeping to a bookkeeping firm where they have a team of trained and qualified experts keeping detailed records and helping you reach your financial goals. With Mark Dicus & Company you can take advantage of our team of specialists as a cost-effective solution to maintain excellent bookkeeping. Call us today to schedule a consultation.