In-House Bookkeepers or Outsourced Bookkeeping Services

Regardless of your business size or industry, one consideration worth making concerning your accounting matters is whether to invest in in-house bookkeepers or outsourced bookkeeping services.

While it may be more common for larger businesses and organisations to have their own bookkeeper in-house, it may not be the best solution. Likewise, with smaller businesses, you may think doing your own bookkeeping will save you money, but will it really?

Both in-house bookkeepers and outsourced bookkeeping services offer many benefits. They each have their downsides, too. The key is defining which option provides the greatest benefits to you, your business, and your bottom dollar.

Bookkeeping is a necessary task for any business as it lets you concentrate on your business strategy through financial reporting, reduces your accounting costs by doing a lot of the legwork, and acts as an additional set of eyes on your cash flow. It also enables you to access and produce financial reports instantly so you can control your business finances in a simple glimpse.

Without bookkeeping, there are no accurate financial records for a business, meaning you are driving blind. You’ll have no real gauge on how your business is travelling, leading to disastrous business decisions, if not business failure.

As expert bookkeepers on the Gold Coast, we are the chosen outsourced booking service for many local Gold Coast and Tweed Heads businesses. However, we’re also the chosen team helping in-house bookkeepers get up and running with cloud-based bookkeeping and accounting software. Our unique position means we’re perfectly placed to provide a nonbiased overview of the pros and cons of each to help you decide which option is best for you and your business needs.

In-House Bookkeepers

In-house bookkeepers are hired by a business or organisation as employees, usually on a full-time salary. They perform all bookkeeping duties in-house rather than through an outsourced service. They are generally only qualified as bookkeepers and have no accounting qualifications.

Top 3 Benefits of having In-House Bookkeepers

There are several advantages and benefits to hiring in-house bookkeepers on the Gold Coast. Such benefits include being more cost-effective, more accessible, and more loyal to your business.

Costs

There may be cost benefits to hiring in-house bookkeepers. When you opt to outsource bookkeeping services, their service rate may cover more skills and specialisations than your business actually needs, therefore making the in-house option better value and maybe even cheaper in some cases.

Access

Of course, having a bookkeeper on hand and ready can be a significant advantage if having timely financial reports are essential to your business decisions and operations. There’s no need to contact an outsourced bookkeeping service and wait for them to get back to you when time is of the essence. Your bookkeeper can drop what they are doing and get it to you immediately.

Loyalty

In-house bookkeepers are loyal to your business and will ensure sensitive information stays within the business. They are also focused and dedicated solely to your business, which can yield better financial outcomes with fewer clients and distractions to manage.

Top 3 Drawbacks of having In-House Bookkeepers

There are also several disadvantages and drawbacks to hiring in-house bookkeepers on the Gold Coast. Such drawbacks include potentially costing you more, taking up your time, and possibly hiring a poor candidate who doesn’t have the same level of skills as an outsourced service.

Costs

The costs of hiring bookkeepers in-house also offer disadvantages. If you’re a seasonal business or don’t have enough business to keep a full-time bookkeeper busy, you may end up paying more for their salary than outsourced bookkeeping services would have otherwise cost. You also have to factor in the cost of employee benefits, software costs, etc., which add to the costs.

Hiring Process

There are significant time obligations to find and interview candidates for in-house bookkeepers, which can pull you away from other business operations. And, not being a bookkeeper yourself, you may not have the knowledge to determine which applicant is the best candidate for the position, leading to poor hiring. In terms of qualifications, they should hold a Certificate IV in Accounting and Bookkeeping (FNS40217) or Diploma in Accounting (FNS50217) in a TAFE institution.

Quality

Hiring bookkeepers in-house may not present the most qualified bookkeepers. Beyond a poor hire, they will likely not have the same level of continued training and qualifications as outsourced bookkeepers.

Outsourced Bookkeeping Services

Outsourced Bookkeeping Services are provided by an external business that specialises in bookkeeping. They perform bookkeeping duties only when asked or agreed by the client, usually monthly or quarterly, and often also offer accounting services. Outsourced bookkeepers usually also provide accounting services, making tax time more streamlined and less stressful.

Top 3 Benefits of Outsourced Bookkeeping Services

There are several advantages and benefits of hiring Outsourced Bookkeeping Services on the Gold Coast. Such benefits include being more cost-effective, offering more qualified bookkeepers, and more free time.

Costs

Outsourced Bookkeeping Services are usually cheaper than hiring in-house bookkeepers because you pay for their services only when needed rather than on a full-time basis. You also don’t have to pay the additional costs of employee benefits, computers, software, office furniture, etc., which offers significant savings.

Expertise & Skills

Choosing Outsourced Bookkeeping Services will likely result in bookkeepers with better qualifications and skills and better financial reporting. They specialise in their area of work and will probably have more training and experience than in-house bookkeepers. This higher skill set can be priceless in improving late, inaccurate or meaningless financial reporting.

Time

Trusting Outsourced Bookkeeping Services with your bookkeeping requirements will undoubtedly save you precious time, which you can now direct towards better running your business. You won’t have to manage the hiring or firing of in-house bookkeepers, and you can rest assured knowing outsourcing bookkeeping services will likely yield better results with fewer errors.

Top 3 Drawbacks of Outsourced Bookkeeping Services

There are also disadvantages and drawbacks to hiring Outsourced Bookkeeping Services on the Gold Coast. Such disadvantages include loss of control of your financial reporting,

Costs

Depending on the outsourced bookkeeping company you choose, there may be hidden costs that you need to be aware of. A cheap service may not be as cheap as it seems. Be sure to ask for a full cost breakdown before engaging their service. Outsourced bookkeeping services, such as Grow Advisory Group, have no hidden costs, so you’ll never get a nasty surprise when invoicing.

Loss of Control

Handing your bookkeeping duties to Outsourced Bookkeeping Services means some loss of control, which comes with the territory. However, provided you trust the service you choose, you should rest assured, knowing your finances are in good hands. Plus, you don’t have to hand over all your bookkeeping duties; you can still do some in-house and outsource those that are more time-consuming or require more expertise. (Read our post, Bookkeeping: What To Do In-house & What to Outsource, for more information.)

Accountability

Even though Outsourced Bookkeeping Services may do your bookkeeping, you are still held accountable by the ATO for all financial information lodged. Therefore, you must review their work and approve it before lodging a Business Activity Statement (BAS) or Instalment Activity Statement (IAS).

Conclusion

There is a place for both in-house bookkeepers and outsourced bookkeeping services. However, if you don’t have the funds to hire a full-time in-house bookkeeper or the volume of transactions to merit the need for one, outsourcing bookkeeping services will likely be the better option due to the cost-savings alone.

Outsourced bookkeeping services like Grow Advisory Group will save you money and time and ensure the highest quality controls are upheld through continued training. You won’t have to worry about paying a salary or benefits or losing time in the hiring process. Best of all, you can rest assured knowing the Outsourced Bookkeeping Service has done the screening for you and that the bookkeeper managing your account will be highly experienced and more than capable of offering sound advice to help you grow your business.

Whether you opt for in-house bookkeepers or outsourced bookkeeping services, Grow Advisory Group can help. As mentioned, we have a team of expert bookkeepers to manage all your Outsourced Bookkeeping Service needs, including bank account reconciliation, quarterly BAS calculation and lodgement, monthly financial reports, custom chart of accounts, and payroll setup. Alternatively, if you’d prefer your own in-house bookkeepers, we can help with the seamless integration of cloud accounting software and switching bookkeeping software.

We offer flexible bookkeeping plans to meet all needs and budgets. Contact our friendly team for all your in-house or outsourced bookkeeping service needs today by calling 07 5599 5700.

Disclaimer: The information contained in this blog is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from an accountant and/or financial adviser.