We regularly read about why we should be outsourcing our Accounting services. Outsourcing has become a common solution for small as well as large businesses due to its advantages. Outsourcing as we all know is a cost-saving option. But here, we will talk about when you should NOT outsource your accounting services.
Outsourcing is not the only solution for every company. So, if you are on the fence about whether to outsource bookkeeping, payroll or accounting services, consider the following reasons, you might want to keep them in house.
- Current Situation:
The simple reason to not outsource your Accounting service is that your current situation works well for you. If things at your office are manageable like you are getting the reports you want, work is getting done within the time frame, the data you require is correct then there is no need to outsource your accounting services. But if you are seeing flaws, gaps or errors that concern you the you might want to change your mind.
- Full control:
If you are looking for full control over operations then outsourcing is what you should avoid. Here, you get less control as you can’t ask for every financial event that takes place. You can surely call your account manager to ask about monthly reports, weekly updates but trust is what is required with your manager. For business owners looking for full control on the accounting activities should surely think before outsourcing.
- Limited Communication:
In house account manager is approachable at all times but when it comes to outsourcing the answers won’t be instant at all times. As there are limitations when the staff is not from the same office. Some outsourcing accounting firm does surely have good communication policies but it differs from being in-house. So, if instant communication is what you are expecting then you must skip the option for outsourcing your accounting activities.
- Not wanting to change old ways:
Some companies enjoy paperwork and want to keep filing storage internally. It may be because of regulatory or compliance requirements and mostly not wanting to change old ways. This may also include pen and paper methods over technology. As outsourcing companies utilize a lot of forward-thinking, technology-based accounting methods. If you don’t like to delegate the paperwork to outsiders and not keen on using technology then inhouse accounting is what you must opt for. But you may outsource other areas and keep the paperwork internal.
- Your company is exceptionally small:
Until you reach a certain point of growth and revenue, your company may not need advanced accounting services. Sole proprietors, micro-businesses with limited bookkeeping needs may fit in this category. Outsourcing can be very cost-competitive. So, if you are looking for money- saving options then outsourcing may not be the choice. Once you hit a certain target of revenue you may choose to outsource accounting services.
Above mentioned reasons are strong for you to decide when you should NOT choose to outsource your accounting services. If you believe there are other reasons as well, please feel free to give your comments.