- Last Updated on:   August 20th, 2019
- Posted by: QB
- Category: QuickBooks
If you are an entrepreneur then this question must have came to your mind sometimes that “What’s best for your business: Bookkeeping services or Bookkeeping employees“.
Bookkeeping is basically a part of the accounting process which involves recording of the financial transactions. And the transaction is all about purchase, sales, receipts and payments to be made by organizations or individuals. With the advancement in technology, today bookkeeping services are offered by software. However, the debate is always on which is better for business: Bookkeeping services or bookkeeping employees.
Business owners have to ensure that proper processing and assessing is being done, finances are handled in the right way and more. But all these tasks are pretty cumbersome and time consuming. And this is why businesses look for ways to handle all these tasks. In this article we will discuss what is best for organizations: bookkeeping services or bookkeeping employees.
Advantages of Bookkeeping Services
Following are the benefits of bookkeeping services.
Cover diverse aspects of financial management:
One of the major benefits of availing bookkeeping services is that the professionals who offer these services conduct verification’s of data, analyse the accounts, perform audits, and accordingly provide a financial report. Moreover, they also make the income statements, tax return records as well as maintain the balance sheets. And the best part is that all the analysis that they offer give an insight of the business trends, growth opportunities as well as cash flow management strategies.
Reduced risk of errors:
The bookkeeping service providers are known to handle the rebates, the gross amount of sale, net sale amount as well as other financial transactions. In simple words they are the ones who decide how to handle transactions and bookkeeping activities without any kind of errors.
Small businesses often face the issue of overhead costs. Apart from this, it is offering the base salary and there are many additional costs incurred by the employers on hiring employee which consists of payroll taxes, medical benefits, sick days, retirement plans, screening interviews and more. All these extra costs can be avoided by availing bookkeeping services as they aren’t very expensive as they seem to be.
Advantages of Bookkeeping Employees
Below we have provided the benefits of bookkeeping employees.
Daily Transaction Records:
A great advantage of having bookkeeping employee is that he/she keeps record of the day to day transaction. The Bookkeeping employee maintains purchases, payments, sales and receipts through a general ledger. They also use certain software to keep track of credits as well as debits. Moreover, they also make a trial balance which makes tracking of cash flow much easier.
Easy Data generation of organization’s financial activities:
What is best is that the bookkeeping employees generate data of the company’s financial activities on a daily basis and in the long term this data turns into information which helps in handling the financial issues of the company. The data also helps in avoiding unnecessary expenditure and there are lesser chances of missing on bills or payments.
It is very easy to keep a check on the performance of the bookkeeping employees and also follow-up with them. This actually induces more productivity as you can get the work done as per your requirement.
Bookkeeping Services: Disadvantages
Inaccurate/late financial report:
When you avail bookkeeping services, at times there are chances of meaningless or incorrect accounting or bookkeeping reports. This can affect the functioning of the organization and that’s why many businesses prefer in-house bookkeepers as they dedicatedly work.
Even the idea of hiring bookkeeping services seem to be an easy solution, at times it becomes quite difficult as you do not get them in-person. This makes the task of tracking their work and follow-ups pretty difficult.
Bookkeeping Employees – Disadvantages
Even though the in-house bookkeepers may be very efficient in maintain in your finances and transaction but they often lack expertise in various other aspects. On the other hand the bookkeeping service providers have a big team where each professionals have expertise in different niche and this makes the work a lot easier.
Distraction from Core duty:
It has been often noticed that in many organization the bookkeeping employees are provided with additional responsibilities like human resource and this distracts them from the main work. This eventually affects the task of bookkeeping and for which organizations have to face many hassles.
Finalize Bookkeeping Services or Bookkeeping Employees
As we have given a proper insight about the pros and cons of both bookkeeping services and bookkeeping employees, now you can easily make the decision for your business. The in-house bookkeeper is a great option for small business but if you are a bigger organization and in a tight budget then bookkeeping service is the perfect option for you. Choose wisely so that your financial transactions are sorted.
For further any query or doubts you can connect with us and our experts will be ever ready to help you. Dial toll-free number 1-800-880-6389 to communicate with our accounting experts and Certified ProAdvisors.