Every new and existing business has the requirement to keep a credible and complete set of company books and records. As the demands on the time of business owners steadily increases, the decision of where to spend time, energy and money becomes more challenging. This is further complicated by the fact that most business owners do not have the necessary skills and understanding regarding business bookkeeping in order for them to competently perform this work to the standard required. How should this situation be handled?
Options
As the business owner struggles with the need to take care of their business bookkeeping, they need to consider the available options. The choices are to either perform the bookkeeping or to outsource it to another company. Let's review these options in terms of their risks and benefits.
Risks
Let's turn our attention to the challenges the business owner may face in taking on their own bookkeeping work. First consider how qualified are they are to be able to deal with business bookkeeping. If they lack the background to be successful at it, are they willing to take proper training? There also is a time factor - is there a willingness to commit the amount of time required to learn how to perform business bookkeeping properly and in a timely manner? The cost in terms of cash will be relatively minimal however there will be the need to spend money to learn how to do bookkeeping in addition to the opportunity cost of time.
If the business owner feels apprehensive regarding any of these factors or perhaps they simply don't want to do the bookkeeping, then considering other options would be best. The next possibility is to have a professional, either an individual or firm handle the bookkeeping. Although there can be the perceived and obvious benefit of not having to be burdened with the business bookkeeping, there are inherent risks. Risks that should give a business owner pause to consider if outsourcing is right for them. The first risk is providing confidential business information to an individual who is really a stranger.
Often this type of decision can come down to how comfortable the business owner is with this person and the degree of confidence in giving them access to business information. This is largely a judgment call. That is to say - there is really no guarantee with anyone. Another risk would be the cost involved. Is it affordable? The costs of outsourcing can be particularly high; especially for quality work. Lastly, there is always the risk of hoping the individual handling their business bookkeeping is performing the work in an ethical, timely and qualitative manner. These comments are not meant to suggest there is no one competent enough to perform business bookkeeping, in fact there are many who are specially skilled for this work; it is just important for the business owner to be aware of these risks. Like any decision, there are also benefits to each of these options.
freshmaza
freshmaza
Options
As the business owner struggles with the need to take care of their business bookkeeping, they need to consider the available options. The choices are to either perform the bookkeeping or to outsource it to another company. Let's review these options in terms of their risks and benefits.
Risks
Let's turn our attention to the challenges the business owner may face in taking on their own bookkeeping work. First consider how qualified are they are to be able to deal with business bookkeeping. If they lack the background to be successful at it, are they willing to take proper training? There also is a time factor - is there a willingness to commit the amount of time required to learn how to perform business bookkeeping properly and in a timely manner? The cost in terms of cash will be relatively minimal however there will be the need to spend money to learn how to do bookkeeping in addition to the opportunity cost of time.
If the business owner feels apprehensive regarding any of these factors or perhaps they simply don't want to do the bookkeeping, then considering other options would be best. The next possibility is to have a professional, either an individual or firm handle the bookkeeping. Although there can be the perceived and obvious benefit of not having to be burdened with the business bookkeeping, there are inherent risks. Risks that should give a business owner pause to consider if outsourcing is right for them. The first risk is providing confidential business information to an individual who is really a stranger.
Often this type of decision can come down to how comfortable the business owner is with this person and the degree of confidence in giving them access to business information. This is largely a judgment call. That is to say - there is really no guarantee with anyone. Another risk would be the cost involved. Is it affordable? The costs of outsourcing can be particularly high; especially for quality work. Lastly, there is always the risk of hoping the individual handling their business bookkeeping is performing the work in an ethical, timely and qualitative manner. These comments are not meant to suggest there is no one competent enough to perform business bookkeeping, in fact there are many who are specially skilled for this work; it is just important for the business owner to be aware of these risks. Like any decision, there are also benefits to each of these options.
freshmaza
freshmaza
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