Bookkeeping is one of a business’s most important tasks. Your bookkeeping records are the backbone of your business. It’s how you keep track of your expenses, income, and what you use when filing taxes.
Remote bookkeeping has been how most businesses track their finances for many years. However, more businesses have begun switching to in-house bookkeeping instead. So, which is better?
If you’re wondering whether you should use remote or in-house bookkeeping for your business, then you’re in the right place! We’re going to delve into the difference between these two practices and discuss the pros and cons of each to determine which is the better bookkeeping practice.
What’s The Difference Between Remote and In-house Bookkeeping?
The difference between remote and in-house bookkeeping is simple. Remote bookkeepers don’t work in your office and don’t communicate with you daily (usually).
Most remote bookkeepers send you monthly reports to keep you updated on your business’s finances and perform their tasks based on the entire month’s expenses, income, and other financial data.
An in-house bookkeeper will work in your office. They can input data daily, so your bookkeeping records are accurate even up to the minute. An in-house bookkeeper can give you daily reports on the status of your business’s finances and are available to manage any changes or flag any irregularities.
Remote and in-house bookkeeping both have pros and cons, so let’s explore these two methods further.
Related: Why Outsource Your Bookkeeping
Pros and Cons of Remote Bookkeeping
Remote bookkeeping has been a popular choice for small and large businesses for many years. It offers plenty of benefits but also comes with some drawbacks. Let’s dive into the pros and cons of this method.
Pros
The positives of remote, monthly bookkeeping are plentiful. These are the pros to following this method:
- Saves Money and Space- Having someone do your books remotely once a month means you don’t need to add another cubicle in your building. It’s also likely to cost less than hiring a full-time bookkeeper, which can be a crucial cost-cutting measure for smaller businesses.
- The Right Tools- Relying on a remote bookkeeper to do your finances once a month is beneficial because you don’t have to worry about getting new, updated technology. Your remote bookkeeper will have all the right tools and knowledge for the job. This can save you the headache of dealing with keeping up with bookkeeping software.
- Work With A Team- Sometimes, businesses work with a bookkeeping team that manages their books rather than hiring a single bookkeeper. This can be an invaluable resource because instead of relying on a single person, you have several people who can get the work done. In this case, you’re less likely to run into delays with your finances.
Related: Why Should You Use K9 Bookkeeping?
Cons
Now that we’ve discussed the pros around remote, monthly bookkeeping, it’s time to move on to the cons. Here are some of the cons of this method:
- Out of Office Logistics- Bringing someone onto your team that works remotely can be challenging. When things come up last minute, or you need to review the monthly report with them, they may not always be available when you need them. This is especially true when your bookkeeper works in a different time zone.
- Data Security- Having a remote bookkeeper means sending sensitive financial data online. While most systems have a reasonable degree of security protocols and firewalls in place, it can still be a concern.
- No Insider Knowledge- Hiring a remote bookkeeper can offer you some benefits, but they won’t be a fully integrated part of your team. They won’t know all the ins and outs of your company as well as someone who works in the office with you.
- Monthly Reports- Only receiving monthly reports can leave your business open to missed financial opportunities. You won’t be able to monitor your finances daily as you could with someone who works in-house.
Do you need help managing your business’s finances? Check out K9 Bookkeeping to speak with a trained professional today!
Pros and Cons of In-house Bookkeeping
In-house bookkeeping is a whole different process than remote (monthly) bookkeeping. It comes with its own pros and cons, which we will discuss in detail.
Pros
There are many benefits to hiring an in-house bookkeeper. Here are some of the positives you can expect:
- More Secure- Your financial data won’t need to be transferred off-site when working with an in-house bookkeeper. This naturally makes your sensitive information more secure.
- Insider Knowledge- Having an in-house bookkeeper means that they’ll be a fully integrated member of your team. Your in-house bookkeeper will better understand the ins and outs of your business and can make more practical suggestions related to your finances. This insider knowledge can be invaluable for most businesses.
- Up To Date Information- An in-house bookkeeper will be able to update your books on a daily basis. This will make it easier for your business to see any irregularities or opportunities for improvement. You’ll be able to notice a problem the moment it arises and deal with it before it becomes a more significant issue.
Cons
There are some downsides to having an in-house bookkeeper as well. These are some of the cons you should keep in mind:
- More Expensive- A full-time, in-house bookkeeper will cost more than a remote bookkeeper who generates monthly reports.
- Use of Resources- In-house bookkeepers will take up space in your office and use other office resources such as paper, printer ink, and pens.
Is Remote or In-house Bookkeeping Better?
Remote bookkeeping may be a suitable option for small businesses and those not generating significant revenue yet. They can keep your books up to date and help you manage your finances on a daily basis. However, once your business has expanded, getting an in-house bookkeeper would be in your business’s best interest.
Are you looking to hire a bookkeeper for your business? Head on over to K9 Bookkeeping to view all the services we offer.
We’re happy you found this article informative! Go back to our blog page to find more tips, tricks and guidance on bookkeeping, to ensure your business is financially sound and ready to grow to the next level.
Running a business is hard work, bookkeeping shouldn’t be.
Let our team of professional bookkeepers take care of your books and receive accurate, detailed reports every month. Our team of experts is laser-focused on the latest trends and premier customer satisfaction, so you can always be sure you’re getting the best care and service. Your personal account manager will focus on handling your books, leaving you to focus on growing your business and leading it forward.
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