Igniting Business Growth with More Profit and More Time

Comparing In-house or DIY vs Outsourced Bookkeeping

I often get asked about the pros and cons of outsourcing your business’s bookkeeping vs managing your bookkeeping and accounting needs in-house. There are advantages and disadvantages to both, and what’s right for your business may differ from what’s right for another business. I’ll break down some of the main points to consider to help you decide what might be right for you.


TRAINING

A business owner might consider outsourcing their bookkeeping needs because they’re overwhelmed with what to do, what software to use, and what their numbers truly mean. Unless you own a bookkeeping business, you didn’t start your business to handle the numbers. You’re an expert in your field just like we’re an expert in ours. There can be a huge learning curve for a business owner when trying to self-teach the ins and outs of bookkeeping. Having a pro in the field on your side allows you to handle the actual business side of running your business while your reports are expertly handled behind the scenes. This could mean completely outsourcing your bookkeeping or even just outsourcing training. With training from an expert, you can ensure that either yourself or your employee is set up for success and manage all aspects of your books accurately moving forward.

Learn more about training yourself or your team:

QUALITY CONTROL

This is a big area of concern for a lot of the business owners I talk to. Maybe they’ve been handling their own bookkeeping for a few years now but aren’t confident that they’ve been doing it right. Or, they think their reports are accurate but once my team dives in we uncover mistakes that can throw their reports way off. Having an experienced team of bookkeepers looking at your numbers is the best way to ensure you’re on the right track and mistakes aren’t being missed. For example, my team always has at least two sets of eyes on any given project to catch any errors. This approach means that your account always has a team of experts checking your books instead of the responsibility being on one person alone. Whether it’s intentional or unintentional, it’s easy for one person to make mistakes. It’s so important to have accurate reports in order to make smart business decisions. Without knowing your numbers and what they mean, your decisions are really just guesses. I know it can be hard for a lot of business owners to give up the day-to-day control of bookkeeping, but hiring an outsourced expert actually leads to fewer mistakes and is a great way to prevent internal fraud.

COST

There are a lot of expenses associated with hiring a full-time or even part-time bookkeeper. Salary alone is usually the largest expense your business will have. Along with salary, you need to consider the costs of insurance, benefits, paid time off, time spent interviewing, hiring, and training, etc. Even if you’re doing your bookkeeping on your own, how much time are you wasting trying to self-teach, fixing mistakes, and spinning in circles vs growing your business?  In most cases, the cost of outsourcing your bookkeeping is significantly less. When considering outsourcing costs it’s solely a service fee with all of the other costs removed from the equation. On average, a full-time bookkeeper’s salary may range from $40-55K while the average to outsource ranges from $500-2500/month.

TIME

One of the biggest struggles of a business owner is time. You wear so many different hats and are pulled in several different directions that by the end of most days you feel like you didn’t actually accomplish what you wanted to. Unfortunately, bookkeeping often falls to the wayside, and before you know it you’re months behind and don’t have a grasp on your accurate numbers. Outsourcing your bookkeeping not only takes a mental stressor away but also frees up your time to allow you to focus elsewhere. Hiring an in-house bookkeeper can eventually free up your time as a business owner, but it’s important to also consider the time associated with training and onboarding a new employee every time you hire someone new. Outsourcing can be a great solution with minimal onboarding.

Outsourcing your bookkeeping may be the secret ingredient to success that your business has been missing! If you’re considering if it’s right for you please feel free to reach out to me and my team at info@riseupbookkeeping.com . We would be more than happy to discuss the pros and cons further and help you determine if it’s right for you.