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Debunking 3 Common Myths About Outsourced Accountancy Services

Accounting processes are an essential part of all businesses. Large, small, brick-and-mortar, online, and all other business variations deal with money, so they have to make financial decisions. To make informed decisions, a business needs good accounting practices; in fact, to stay afloat and legal, a business needs good accounting practices.

 

However, all entrepreneurs aren’t expert accountants. For them, accounting may be a necessary nuisance given how time-consuming, error-prone, and boring it can be. For them, the ability to outsource their accounting services is a blessing. Still, outsourcing is bogged down by some myths. Here are some of those myths and why they’re false.

 

Sending Financial Information Isn’t Secure

 

It’s reasonable to worry about outsourcing accounting services due to the sensitivity of the information being sent. In fact, this myth isn’t entirely false, depending on how you interpret it. If you understand it as a general statement about safety, then it’s correct; no information is perfectly secure. As hackers continue to innovate, the incidence of data breaches continues to grow.

However, the myth is often intended to mean that outsourced accounting firms aren’t trustworthy. If you do your research and find a reliable accountancy company, sending information is secure. They take extra precautions, such as signing NDAs, encrypting data, and conducting regular audits.

 

A calculator, notepad, and pen on top of a pile money

Outsourcing Is Expensive

 

Unlike the previous myth, this is categorically false. There’s no definitive rate for outsourcing accountancy services. Some companies will charge a premium if they have a good reputation or provide quality services. However, even with this premium, outsourcing accountancy services is well within the budget of most businesses.

Besides the relatively low rates, outsourcing accounting also has several cost advantages. Firstly, it saves you time since the accounting process occurs simultaneously with your other business operations. Secondly, you also minimize accounting mistakes, which can land you in legal trouble. This second advantage leads us to the next myth.

 

You Can Do the Accounting Yourself

 

In theory, you can do your own accounting. However, you don’t run a business in theory; you run it in practice. If everyone could do accounting with the same efficiency, it wouldn’t be a profession.

Firstly, a businessowner has to monitor many operations. As the number of operations increases, so does the risk of making a mistake. Secondly, accounting isn’t what generates your company’s revenue, so it isn’t always prioritized. Lastly, accounting does involve a degree of expertise that most people don’t have. Dealing with contingencies and financial standards is best left to a trained accountant.

If you’re looking to outsource your accounting operations, get in touch with us at Duggal Professional Corporation. We’re an accounting company in Edmonton, Alberta, that provides full-cycle accounting, bookkeeping, and payroll services. Contact us to focus on your business operations.