In-House vs Outsourced Bookkeeping

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In-House vs Outsourced Bookkeeping
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• Many CEOs and business owners rely on in-house
  bookkeeping and accounting to receive their
  financial statements each month because its what
  theyre used to. However, with technology
  advancements in recent years, traditional is not
  always best when it comes to managing your
  companys financial standing.
• In-house and outsourced bookkeeping services
  offer different workflows when managing the
  bookkeeping and accounting for your company.
  While we understand that outsourced bookkeeping
  and accounting is not right for every business,
  if it does fit your businesss needs, it can
  often cost less and provide more expertise than a
  traditional in-house accounting department.

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• Below we outline a few differences between what
  in-house and outsourced bookkeeping services and
  accounting services can offer your business.

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• Quality and Training for In-House vs Outsourced
  Bookkeeping and Accounting
• When hiring for in-house bookkeepers and
  accountants, you want to look for experience and
  proven track records at other businesses.
  Screening is important when hiring for a
  bookkeeping and accounting position because you
  could end up with a self-taught employee. This
  isnt always a negative, however, you might have
  a greater risk of receiving below par processing
  and month-end reporting.

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• Outsourced bookkeeping and accounting services
  often provide higher quality and expertise.
  Employees of outsourced services are usually
  experts who undergo continual training in
  accounting and technology.
• Whether you choose in-house employees or an
  outsourced service, making sure they are trained
  on an ongoing basis will help ensure you get
  timely, accurate financials.

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• Internal Controls for In-House vs Outsourced
  Bookkeeping and Accounting
• Proper internal controls ensure that the flow of
  information into the accounting system is
  accurate, timely and classified correctly during
  the right period. It also provides a series of
  checks and balances that help reduce the risk of
  getting ripped off.

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• When you have just one or two employees handling
  your books, your company has a higher risk of
  fraud. The person paying the bills might be the
  one reconciling the bank account, and because
  there isnt separation of duties, you have just
  given them the keys to the bank. They can steal
  from you and cover their tracks. And you wont
  find out until its too late.

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• Outsourcing helps reduce the risk of fraud
  associated with your businesss accounting
  because there are separation of duties and ore
  rigorous steps taken when providing financial
  statements for the business. Most outsourced
  companies have two sets of eyes reviewing each
  step with different levels of staff working on
  one account. There are steps taken for one
  employee to review the others work to ensure
  there arent any discrepancies or errors.

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• Financial Reporting Process Done In-House vs.
  Outsourced
• The financial reporting process will look
  different for each business depending on specific
  needs, number of transactions each month,
  industry considerations and many other factors.
  In-house bookkeepers, accountants or controllers
  can provide reports for your business however,
  you need to ensure that they have the right
  education, training and skill sets to provide a
  quality month-end close and accurate reporting.

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• Many times in-house bookkeepers and accountants
  have other responsibilities, such as human
  resources, that can take time away from their
  core duty of accounting. When this happens,
  collections and financial reporting can get
  pushed aside because data entry, recording
  invoices and paying bills takes priority. For a
  CEO or owner, these reports are vital to cash
  flow and to help make decisions that impact the
  business.
• Outsourcing your bookkeeping and accounting can
  help alleviate late, inaccurate or meaningless
  financial reporting. When you decide to
  outsource, you can pick and choose exactly what
  you need for your business. If you have a
  bookkeeper in-house, you usually wouldnt have to
  fire them.

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• In fact, working with an outsourced service can
  often make existing employees more effective by
  establishing streamlined procedures and training
  them in the best-in class policies. They can then
  report to an Outsourced Controller who provides
  oversight and can produce the financial reporting
  your business needs. Financial reporting will be
  on time and accurate when outsourcing because
  employees are trained, experienced and only focus
  on their core job descriptions.

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• Cost Difference Between In-House and Outsourced
  Bookkeeping and Accounting
• For many small and medium businesses, cost is a
  big determining factor when choosing a
  bookkeeping and accounting service. A full-time
  in-house bookkeepers annual salary is roughly
  45,000 and a full-time accountants salary is
  60,000. Together, two employees cost over
  100,000 which doesnt take into account for
  overhead costs.
• Overhead costs add an additional 20 on top of an
  employees base salary and consist of

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• Payroll Taxes
• Superannuation
• Vacation/Sick Days
• Placing Ads, Screening Interviews, Testing and
  Training of Employees
• Your business wont pay overhead costs when using
  an outsourced service. Outsourced bookkeeping
  costs start at 350 and VCFO services cost
  between 2,500 - 5,000 a month for small and
  medium businesses depending on the services you
  require. Even at the top of the range, at 5,000
  per month, it would cost your business 60,000 a
  year, which is substantially less than a
  bookkeeper and accountant.

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• Which Bookkeeping and Accounting Service Should
  Your Business Choose?
• Choosing a bookkeeping and accounting service for
  your business depends on which can support the
  needs of your business the most. In-house
  bookkeeping and accounting might be right for
  some businesses, however, many businesses find
  outsourcing their financial needs is easier and
  more cost effective.

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• Unlike most outsourced companies, iKeep
  Bookkeeping a Xero bookkeeper is Australian based
  and offers a dedicated team of a bookkeeper,
  staff accountant and accounting manager, working
  out of our office in Sydney, who provide the
  expertise you need to run your business. We have
  strict guidelines in place to ensure that there
  is no risk of fraud and our staff goes through
  continual training so they are up-to-date on
  accounting best practices.

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• iKeep Bookkeeping is Xero Platinum partners and
  delivers our clients actionable financials that
  they can count on. We are experts in bookkeeping,
  accounting and VCFO services and provide
  businesses timely and accurate financial
  statements from a team you can trust.
• While we do much more than just the essentials,
  the core of our service is solid, reliable
  bookkeeping and accounting services that keep
  your business on track. We help companies take
  control of their finances and deliver actionable
  financial intelligence designed to help grow your
  business. Put your numbers to work! Book a call
  with one of our experts.