Outsourcing Your Company’s Small Business Accounting Functions to Family
Wed ,10/06/2009
If you are the owner of a small business, who is interested in saving a portion of your payroll costs,thinking about outsourcing your current accountant or bookkeeper, a family member is out of work, outsourcing to family may make sense for you.
Outsourcing your accounting or bookkeeping functions may result in reduced payroll costs, or the conversion of fixed costs to variable costs, insurance, benefits and some tax savings, etc. However, before you start outsourcing, you will need to invest in a quality fax machine or scanner. The type of fax machine or scanner depends on the volume and frequency of documents(i.e. vendor bills,customer invoices bank statements, etc.) to be scanned and sent to your outsourced accountant. Scanning or faxing is necessary because all of the source documents have to be sent either by email or fax to the outsourced accountant to record the bookkeeping transactions.
As an owner of a small business or the person responsible for the accounting or bookkeeping, it’s important to establish a process by which to monitor the activities of the outsourcing company or person. Outsourcing may make sense, providing a competent and independent person oversees and monitors the financial results on your behalf.
