Bookkeeping Company vs Freelance Bookkeeper

Why should I hire a bookkeeping company instead of a freelance bookkeeper?

Nowadays you can hire freelance contractors to help with almost any aspect of your business, from HR to marketing to maintenance. Freelance bookkeepers abound, and many of them are excellent at what they do. There are, however, certain benefits to working with an outsourced bookkeeping company that can offer you the resources of a team over those of an individual.

Here are five reasons you should consider hiring outsourced bookkeeping services instead of a freelance bookkeeper to manage your company’s accounts.

1. Dealing with work overload

One bookkeeper can easily become overloaded with work, especially around busy times of the year such as year-end tax filing. This can dramatically decrease their response time and also lead to increased stress, which may result in a lower quality of work and less attention paid to critical industry developments (ex: policy changes). A bookkeeping team can spread this workload among themselves to ensure that customer service and quality never suffers.

2. Sharing knowledge and expertise

When a freelance bookkeeper encounters difficulty, he or she can’t simply turn around and ask a colleague for input. The only available options are to: a guess, or b) spend hours searching for the answer. A team can talk through the issue and arrive at a solution more quickly thanks to their combined knowledge, training, and certifications. Most bookkeeping teams are led by a manager whose experience and knowledge alone can save the team hours of research.

3. Covering for vacation and leave

If all of your bookkeeping is tied to a single person, what happens when this person gets sick? Or takes a leave of absence during your busiest time of year? Or goes on vacation when you happen to experience a moment of crisis? If your books are being managed by a bookkeeping team, there will always be somebody else able to step in and ensure that there is no interruption to your workflow.

4. Covering for accidents and emergencies

Forget vacations. What happens if, God forbid, your freelance bookkeeper falls seriously ill or is accidentally injured or killed? If all of your accounting information is stored with this individual, you’ll have a hard time retrieving it. A bookkeeping team has contingency plans in place so that you’re protected if the unfortunate happens. Another representative in the company will take over management of your accounts so that your business can continue uninterrupted.

5. Maintaining accountability

A freelancer is his or her own supervisor, meaning your freelance bookkeeper has to hold him/herself accountable to the goals and deadlines you’ve agreed upon. It’s hard, and at times you might find yourself having to manage your bookkeeper. A bookkeeping team will have management and review systems (ex: performance reviews) in place to ensure that everyone on their team is held accountable.

Now you know the difference, but what should you ask before choosing a bookkeeper?

You are in luck!

We’ve created a FREE extended guide called “5 Things to Ask Before Choosing Your Bookkeeper – And The Responses They Should Give You.”

We’ve shared insights that will help you understand how bookkeepers operate, bill, and deliver results. Most importantly, the guide details exactly what a good bookkeeper should tell you when you ask those questions. Our guide is a must-read for those looking to save time and money.

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About Bob Wang

Bob is the owner and founder of Legacy Advantage. He holds a CPA and has experience at a private client services brand, Big 4. Bob's passionate about empowering organizations through quality bookkeeping services.
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