Our business relies on the proper maintaining of the flow of the financial reports which contains key information regarding our business to run smoothly. For this task, we need accounting activities that can be accomplished by opting for either Bookkeeping services or Bookkeeping employees.
While Bookkeeping service providers are more engaged with the verification and analysis of data, Bookkeeping employees handle a business’s day to day transactions.
Before we could make a decision of choosing either Bookkeeping services or Bookkeeping employees, let’s take a look at the benefits and drawbacks of both these options.
Benefits of bookkeeping services
Tasks of bookkeeping services professionals are important to the business’s financial growth. These professionals provide an overall view of the business strength based on the verification and analysis of the available data.
Chance of error is minimal
As the bookkeeping service professionals can handle diverse and various transactions such as the total amount of sales, net sales amount, rebates, etc, the chance of getting an error is minimal. These transactions need some specialized professionals to be accomplished and can’t rely solely on bookkeeping employees.
The main benefit of opting for a bookkeeping service is that it can reduce the overhead cost of the business. These are the additional costs that are to be borne by employers such as payroll taxes, retirement plans, medical benefits, screening interviews, placing ads, etc.
Benefits of bookkeeping employees
Keeping track of daily transactions
A professional bookkeeper or employee can handle the all-important daily routine of the business such as handling and keeping track of the financial records. He works as an accountant for the business to perform tasks such as maintaining a general ledger for recording receipts, sales, and purchases, payments, etc. They can also use certain software in order to furnish these tasks more efficiently.
Considering all the benefits you must know what you should look for in bookkeeping services.
As the bookkeeping employees are keeping the tight schedule of performing their day to day routine tasks of the business, they can manage or handle the errors that can occur in the meantime. A business owner can hardly identify the error such as double entries, missed entries, mixing of different types of expenses.
A professional and experienced bookkeeping employee is less likely to make mistakes
Bookkeeping employee as you need
Another benefit of hiring a bookkeeping employee is that you can hire it according to your business needs. You can hire an employee either for full time or part-time. You can also easily track the performance of your bookkeeping employee
Drawbacks of bookkeeping services
Probability of faulty reporting
There might be a chance of getting the faulty financial report or the report may be pending for unprecedented time when it comes to the bookkeeping services at the time of outsourcing the financial report. This could be more possible with the in-house bookkeeping service.
Follow up is difficult
It’s not easy to track the working of bookkeeping services because they aren’t accessible personally. Even if you hire the best bookkeeping service for your business it’s being difficult to follow them up. You must need some extra efforts to do this.
Drawbacks of bookkeeping employees
Limited to their task
Bookkeeping employees perform the task that can only suit them. They have some lack of expertise in one or more areas. Moreover, a bookkeeping employee is also gets distracted from his core duty when they are expected to perform some other tasks. As a result, the delay in the financial reports.
Hiring is Costly
It is costly to hire a bookkeeping employee because of its overhead expenses such as medical benefits, screening interviews, placing advertisements, retirement benefits, payroll taxes, etc.
Based on the above facts on both bookkeeping service and its counterpart bookkeeping employee, you might be able to strike a chord between them and to opt for the one which is best suitable for your business needs.
As we observe, it might be suitable to hire an in-house bookkeeper or employee to keep track of daily financial records of your business. But as we can say, hiring an employee or service for your business’s bookkeeping operations are solely depends on your type of work.
After all, you are the boss of your business and can make the right decision.