Bookkeeping is an inherently complicated and focus-intensive task that is best left to experienced professionals. Business owners' time is best invested driving the company and taking crucial decisions; financial recordkeeping thus becomes a job the owners shouldn't need to invest their time in. So, as an entrepreneur, it is a good idea to employ professionals and buy bookkeeping software to set up an in-house accounting department, or you can even choose to outsource the task of regular record keeping to an expert service agency.
For some entrepreneurs, the idea of spreadsheets, journal books and ledger maintenance is too cumbersome and incomprehensible. Others may find it risky to outsource this task to agencies. All in all, the choice between going for bookkeeping services or bookkeeping software is completely up to personal preference and resource availability. Let's explore both these options in this article and attempt to understand which one will be best suited to your needs.
Understanding bookkeeping services
Businesses that prefer to keep their accounting and record keeping transparent, accurate and efficient tend to prefer the option of outsourced bookkeeping services. Expert professionals work day in and day out to maintain your ledger books and record every financial transaction going on in your enterprise – that too without the hassle of maintaining multiple employees on your payroll – THAT is an advantage that only outsourced bookkeeping services can provide you. The business owner is saved from the issues of managing a full-fledged accounts department in-house and, can, therefore, utilise their productive time towards core functions while bookkeeping is effectively managed elsewhere.
Understanding bookkeeping software
Entrepreneurs who prefer to manage their financial records themselves would benefit from the automation options offered by bookkeeping software. These solutions allow you to get the most productivity from your accounts department, ensure accurate record keeping and speedy processing of data and automation of various steps of the accounting and bookkeeping cycle. Businesses that prefer maintaining an in-house bookkeeping team should definitely choose the software option for better and more efficient work.
Software vs Services – an unbiased view
• Bookkeeping services are the more economical and hassle free option as compared to Bookkeeping software (which will have to be purchased) and having an in-house accounting department (which is an added HR expense). All things considered, the hiring cost for outsourced services will prove to be much lesser than using software for in-house record keeping.
• Bookkeeping services are definitely a one-step solution – you hand over the job to professionals and they will take it from there. On the other hand, with Bookkeeping software, there is a learning curve involved as your team works out how to use the application, followed by continual management efforts on your part to ensure a smooth work flow.
• Bookkeeping services allow you to get access to a team of expert accountants and record keepers for managing your daily transactions. With Bookkeeping software, however, it is only your in-house record keepers that are doing the job whose expertise, knowledge and experience will be restricted to their limited field of work.
• Bookkeeping services allow for flexible and easy scalability. You can expand or cut back your record keeping operations with them in the blink of an eye. Such smooth transitions, scalability and flexibility from Bookkeeping software is just not possible.
All things considered, bookkeeping services and their human advantages beat most automation benefits that a software may provide you. Choosing the former is definitely the more practical thing to do. The choice is yours!
Allenby Accountants is an independent accounting firm, located in Uxbridge, the western part of London. We are accountants, business advisers, offering financial services and helping you to achieve your business objectives. Our offered range of services includes accounting, bookkeeping, tax management, VAT management, tax planning, Inheritance tax, capital gains tax issues, succession planning, etc. We specialise in offering services to sectors like medical & healthcare, retail industry, professional services, property & construction industry, charity and not-for-profit organisations and more.