The pros and cons of outsourcing bookkeeping and payroll
Would you like to be able to reduce your time spent on bookkeeping, payroll and admin tasks so that you could focus on doing what you are good at? One way would be to contract out the bookkeeping and payroll to us.
The pros of outsourcing
As your business grows it might be time to outsource these tasks. There are a number of advantages to outsourcing to an Australian based bookkeeping business.
Your time is precious – and every hour you spend on bookkeeping and Payroll may be time you could be focusing on growing your business your business.
It is less expensive hiring a qualified bookkeeper than to employ a full-time staff member to complete these tasks. A registered BAS agent is expected to have the necessary qualifications, insurance and experience to offer a quality service.
Aside from wages for your full-time employee other expenses are annual and sick leave, training them to do the work correctly, office equipment and if they are not suitably qualified there may be errors that can cost you from a reputational perspective.
Get better reporting and expert advice
One of your main motivations for outsourcing should be to obtain regular management reports and to be on top of your accounts receivable and payable. The right advice at the right time could end up saving your business money over the long term.
A professional bookkeeper specializes in the work they offer. You should be able to trust them to handle your accounts correctly.
Free up time
Whether you are spending your own time doing the books or hiring a staff member to spend time doing them, you’ll be able to free up your own time for life balance.
Having more time to allocate to business and relationship building activities could be vital. You might also find that your stress levels naturally decrease by getting a skilled bookkeeper on the job.
Improve your service and efficiency
If you decide to outsource to a bookkeeper, part of their job can be issuing invoices in a timely fashion and ensuring your bills are paid on time. They can help your business become more efficient by reducing late payments.
In addition, by taking these tasks off your hands, you might be able to focus on improving the service you offer your customers.
The cons of outsourcing
With the positives there are always a few negatives, and outsourcing is no different.
Loss of control
You may find it hard to not have control over what is happening. A good bookkeeper will explain what needs to be done and by when and if they are providing you with regular management reports you will have a full view of what is being done.
From a banking perspective, only give them access to view and upload transactions. You will maintain full control of authorising payments,
It is important be important to be able to trust the bookkeeper and that you are receiving the information you need when you need it.
Risk of choosing the wrong contractor
When contracting a job out from your business there’s always a chance of the process not quite going the way you want, and in the case of accounts, errors being made. Ask your advisors, mentors and fellow business owners for some recommendations on who best to approach. In the beginning question what is being done.
Danger to confidentiality and security
Information can be the lifeblood of many businesses these days – without it, your business may not be able to operate.
A BAS agent is registered with the Tax Practitioners Board and their reputation around confidentiality is paramount to them. They are also obligated to have Professional Indemnity insurance in place.
Ensure there is a contract in place with the bookkeeper.
You’re still ultimately responsible
Ultimately you are still responsible for what happens but it is really important to know the various due dates and ensure you receive copies of what they have done. Don’t be afraid to question your bookkeeper.
After weighing up the advantages and disadvantages of outsourcing your bookkeeping and payroll, you will be able to reach a decision based on what stage of the business life cycle your operation is at and whether you have found the right contractor to outsource to.
Remember your accountant is normally your Tax Agent and when they do your tax return they check what the bookkeeper has done.
- Talk to us about how we can help you.