Most businesses especially start-ups try to outsource their bookkeeping needs to save on operating costs. Having an external bookkeeper is an emerging practice among businesses of all sizes. However, there are well-managed and financially sound companies that depend on online accounting software because they make long-term decisions based on their growth and profitability. It is, therefore, imperative to weigh the advantages and disadvantages of having an external service provider who does bookkeeping in the Philippines.
You might ask, for those companies who outsource are they doing the right thing? Or is it smart, innovative, and even a better option? What are the advantages and disadvantages of having an external bookkeeper?
Let us find out first the advantages:
Advantages of having an External Bookkeeper in the Philippines
Cost-effectiveness. Having a regular employee as a bookkeeper to serve your bookkeeping needs may be costly. There is a monthly salary involved plus employee’s benefits like 13th-month pay, other bonuses medical, paid sick leaves, and others. Computers and other specialized equipment won’t be necessary anymore if you hire an external bookkeeper. Outsourcing a bookkeeper saves you at least 40% of costs because there are no other benefits involved and they get paid by the hour.
Expertise – Most bookkeepers are graduates of Accountancy and others, BS Math. They have skills in math, problem-solving activities, have great attention to detail, are very highly organized, and abide by the tenets of honesty, secrecy, and integrity. They have worked in the industry for many years and have the knowledge and experience, so they are the best in the field. Having an expert and spending less is the way to go.
Contractual / Term– There is a certain term or period in having an external bookkeeper. Some companies have retainers on bookkeepers while others just hire them on a per-project basis. There is no obligation but perhaps a contract to serve as a guide stipulating the project’s culmination to its commencement. Having a regular employee is bound by the law and does not commence, not unless the employee resigns with its benefits altogether.
Time – There is more time to do now that a bookkeeper is outsourced. There is more time and resources to focus on other important matters for the betterment of the company.
Disadvantages of having an External Bookkeeper in the Philippines
Less Control – There is lesser control because the hired bookkeeper may not be able to see figures on the same page and the actual overview of your finances may not be fully grasped. Whereas having your online accounting software makes you the boss and be in control of it.
Confidentiality and Security – A company’s financial information containing delicate and sensitive data is to be secured at all times. With an external bookkeeper, it is essential to establish trust and confidence and to choose them carefully with utmost scrutiny.
Communication and Relationship – The services of a bookkeeper have limitations as compared to having an in-house employee or an online accounting software installed. Because of proximity and perhaps different locations, there may be miscommunication and lapses and may lead to erroneous reports in the future.
Quality of Work – The disadvantage of hiring an external bookkeeper is the inability to consistently track and monitor the financial standing of your company. Having your own company’s bookkeeper or better yet, having online accounting software makes you more at ease in tracking your financial health.
Guidance and Advice – Unlike in-house accountants and bookkeepers, they can serve as workmates mindful of your finances and they can guide and act as financial advisors and even provide special services that most outsourced bookkeepers fail to do like financial modeling, financial monitoring, and diligence in work.
Using Online Accounting Software
Most often, because of budget constraints, small to medium-sized enterprises opt to have an external bookkeeper. However, with the demands of the job and the company growing and when all else fails and time is of the essence, automation is key. Online accounting software that is ready to meet your growing and changing needs is EasyFIS.
With EasyFIS, it is bookkeeping made easy! You can even open a free account to try the ease and comfort of bookkeeping with the power of your fingertips. Free online sales, inventory, and accounting system all rolled into one.
How can EasyFIS help your business? Easy.
- End to End Accounting Software with Sales and Inventory Integration.
- Cloud-based and Software as a Service (SAAS).
- Multi-currency. The system is capable of making transactions in different currencies.
- Higher Accuracy and real-time reports.
- Faster Coordination with Teams.
- Cost-effectiveness by reducing paper and Ink wastages.
- Low cost of deployment and maintenance.
- Improve customer service.
- Philippine Taxation Law Ready. EasyFIS follows the Regulations and Guidelines set by the Bureau of Internal Revenue (BIR).
- Compatible with POS front-end Software.
- Multi-Branch. The system is capable of having multiple Stores, Branches & Warehouses to monitor Sales and Inventory across your company.
Why get torn between having an in-house bookkeeper or outsourcing one when you can have automated software that can address all of your requirements? Learn more about this online accounting software, EasyFIS: