Odd Reasons Not to Outsource Accounting Services
By: Kellie Connor
Tags: Outsourcing, Accounting Services, Accounting, Accountant

Odd Reasons Not to Outsource Accounting Services

Outsourcing, with its numerous advantages, is a popular trend in the market today. Many companies outsource accounting services as it removes the need to be an expert outside of your core competencies and gives access to the skillset of professionals. Although there are many reasons to consider outsourcing, it is also a fact that for some companies, it is not the only solution.

The following are some reasons why few businesses are reluctant to outsource and prefer keeping their accounting processes in house.

Your company really loves paper

This may seem cliched, but many companies cannot let go of the massive amount of paper stacked in their offices or external storage. A few reasons behind this may include compliance restrictions or regulatory requirements, but others are just related to the resistance of adopting the new ways. It is acceptable if you prefer your paper ways, but if you are on the fence for considering outsourcing, you can keep certain paper-intensive tasks internal whereas, outsource other areas.

Busting an entrepreneurial myth

Usually, we think about an entrepreneur as the one handling all the tasks at once. Managing various tasks and being the jack-of-all-trades is something that seems like a synonym for an entrepreneur. While it is perfectly acceptable to carry this image and not hire any outside help for your business, it is also not necessarily the case. You can always outsource various accounting tasks and take external help to get some burden off your shoulders.

You love the traditional approach to work

Traditionally, before the advent of fast and cheap technology, accounting was done manually with all the transactions recorded on paper and kept in voluminous binders. There is no denying the fact that the manual process is time-consuming and complex when there is a huge amount of data to handle. Using various accounting software is the solution to this problem.

Having a DIY approach

Some business owners rather prefer handling everything on their own. There may be various reasons behind it, one being the need to keep all the processes under immediate control. Although this approach is not wrong, the same includes a lot of hassle. This is because, as a business owner, you already have a lot on your plate, and outsourcing a few non-core activities will only bring you relief.

You run an exceptionally small company

Another reason for not preferring to outsource may be that you have not reached a point in your business growth and revenue where you require advanced accounting services. Microbusinesses fit into this category, where they have limited bookkeeping requirements. For a start, it may be a good idea to manage your books annually, but as your business grows, you definitely should reconsider outsourcing your accounting needs.

You would only outsource for money-saving reasons

Being cost-conscious and having the same as a motivating factor for outsourcing is completely acceptable, as outsourcing can be very cost-competitive. But if the cost is the only reason that you are holding yourself back, you might want to reconsider. Outsourcing is more about increased efficiency and accuracy, and you might not like the results that you achieve from comparatively cheap alternatives for outsourcing.

You love the current situation you are in

This reason is quite obvious that if your current business structure is working for you, you might not feel the need to change it. If you are getting accurate reports on time and the data is always correct, you will not want to change the same. But, if you see flaws and errors in the current processes and you are concerned about the same, you might consider outsourcing.

Conclusion

Many reasons might be causing a resistance for you to outsource accounting services, and you may have your own argument for the same. But, there is no denying the fact that outsourcing makes your accounting process easier and accurate, giving you time to focus on business growth.