Some people think outsourcing is a dirty word, but there’s an even dirtier one: offshoring. Yes, there’s a difference. A huge one, in fact. Offshoring is the act of moving a job out of the country. Outsourcing is the act of relegating certain aspects of your business to another company. Whether you choose a company that’s located within the United States might not seem all that critical to some, but it’s certainly a huge deal when you outsource bookkeeping services. If you’re considering outsourced bookkeeping services that aren’t located within the U.S., stop first and read about some of the risks you face by doing so.
- Language Barriers. When you outsource bookkeeping services, one of the greatest concerns you’ll face is that the individual with whom you’re communicating won’t understand your instructions completely. These kinds of misunderstandings can be costly.
- Security Issues. Outsourced bookkeeping services have to be able to provide top-notch security for the transmission and the storage of your company’s sensitive financial information. If that’s compromised, it could result in serious damage to your company. Third party accounting firms not located in the United States may not be held to the same legal standard as in-country companies, which is a grave risk.
- Lack of Resources. Reliability and quality of work are two factors that fall under the general umbrella of companies that operate with limited resources. Just because you may be saving a bundle certainly doesn’t mean that you’ll be getting the same quality or reliability from an outsourced bookkeeping company.
Always take a close look at the company you plan on doing business with before handing over control of your company’s sensitive financial information. Ensure they offer well rounded services that will not only serve you well now, but that can continue to do so in the future as your company grows. There’s nothing wrong with doing commerce with companies in other countries. Just think long and hard before extending that commerce to include your company’s financial workings.