Automated bookkeeping: What to know before you outsource

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To automate or outsource? That is a top bookkeeping conundrum.

Both are excellent options, making the decision challenging–each streamlines operations, reduces costs, increases efficiency and productivity and improves outcomes. Additionally, users regain valuable time–time better used for focusing on core competencies and value-added services.

Let’s examine the benefits of both. While deciding which to choose also depends on budgetary constraints, the information below can help you better explore the advantages in a cost-benefit analysis.

The pros of outsourcing

With outsourcing, you gain a team of people to streamline your bookkeeping process without adding to payroll. You can enjoy a more hands-off approach to bookkeeping responsibilities while reaping the benefits of having a knowledgeable, experienced team handle those tasks.

The outsourced firm efficiently dedicates time, energy and resources to bookkeeping and other relevant activities. They can handle data entry, compliance, best practices and regulations more precisely and accurately.

Accountants regain valuable time to focus on other core competencies once monotonous and tedious bookkeeping tasks vanish. If the chosen provider has capacity, they can quickly scale up or down as your business needs fluctuate.

Dedicated bookkeeping firms have trained staff and established processes. Clients leverage the power of their team and expertise. Your firm can enjoy that economy of scale without hiring or firing staff.

The pros of automating

As with outsourcing, automated technology helps busy bookkeepers streamline their processes and reduce manual tasks. Data entry is the most automated task because it’s relatively uncomplicated to make the switch.

Automation allows the accounting team to keep their processes exclusively in-house while gaining more timely control over the bookkeeping function. Moreover, bookkeeping software typically includes reporting capabilities, allowing users to generate reports effortlessly.

Automated bookkeeping software typically prompts users to categorize their entries. Intuitive technology can catch and sometimes even correct mistakes. Preset rules and procedural features like these reduce data entry inconsistencies and human error.

Many software developers have customer success teams devoted to ensuring their customers meet or exceed goals with their service. While you would work on bookkeeping duties solo, you never have to worry about figuring out the tech alone.

Automation can save organizations the costs of adding human resources to payroll. It reduces errors, standardizes data and increases productivity.

Objective-driven decisions

The decision rests with organizational needs, goals and resources. Compare budgetary constraints with value-added services to determine the most cost-effective solution.

Examine your bookkeeping needs and objectives. Are the tasks complex enough to hire an expert? Would an outsourced firm be able to scale up or down with business fluctuations?

Also, consider time and human resource limitations. If you choose automated software, do employees have the time and skills to complete the necessary tasks? Which choice frees up the most time?

Make a list of your requirements. Arrange your list in order of importance. Then, choose the option that meets most of your needs.

A double-sided attack

Of course, there’s no rule against creating a hybrid solution for your bookkeeping needs. Assess your organization to determine your unique requirements and bottlenecks.

Take advantage of the in-house, cost-saving benefits and efficiencies automated technology provides. Meanwhile, gain expertise and time-savings by outsourcing a portion of your bookkeeping responsibilities. For example, taxes might be better outsourced, while bank reconciliations and reporting needs are handled in-house with automated software.

Education-driven decisions

Accountants are no strangers to unique and creative problem-solving. Likewise, bookkeeping solutions involve a clever touch as individual as the organization itself.

Gather all the info you can, learning more about outsourcing and automation possibilities to uncover opportunities to streamline additional accounting processes. Vet potential outsourcing firms and software for their reliability, safety, security, compliance and accuracy.

Pull information from your trusted resources, like professional peers, industry journals and accounting membership organizations. Avoid getting stuck in a never-ending analysis by giving yourself a due date for deciding.

Did you know that accounting membership organizations like The Ohio Society of CPAs (OSCPA) can help you with decisions, such as whether to outsource or automate? Professional accounting organizations provide expansive resources (like networking opportunities) and education (like IT, automation and best practices) through on-demand CPE webinars, news bites and other avenues.

Automated technology changes rapidly. Accountants who stay in the know don’t have to spend as much time researching decisions, and they are more likely to feel confident in their choices. Your accounting organization can help you sharpen your knowledge and skills. Convenient, on-demand content helps you stay ready to make challenging decisions, like which tasks to automate and outsource.

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