5 Myths about Working with an Accounting Services Company

​When we talk to prospective clients, we’re always amazed at the types of myths that are going around out there about working with an accounting services provider. After almost two decades of doing accounting work for clients, we’ve heard it all from the silly to the downright bizarre. But throughout it all, the same few myths have stuck around over the years. So, we’re taking the time to address them now to set the record straight. 

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​Below you will find common myths about using an accounting services company and what our take on each one is to better inform your search for an outsourced accounting provider.

Myth 1: There’s No Privacy
The Myth:
Often, business owners will tell us that they have privacy concerns about talking with accounting services companies because they assume that the consultant will want to look at their books before getting started and they don’t necessarily want to share that information while they are still evaluating their options.

The Truth:
In many cases, looking at a client’s books isn’t required before getting started. (Although, if something seems to be amiss about the business that could potentially indicate fraud, an accounting consultant may reserve the right to ask to see the company’s financials before agreeing to the engagement.) Sure, looking at a business’s books helps in assessing the health of their financials, but it’s not required to estimate the time required to do the job. Top accounting providers have enough experience to know how long different types of accounting tasks and deliverables will take, so they can provide an estimate without needing access to your books.

Myth 2: It’s More Expensive
The Myth:
Prospective clients are always concerned about the cost of outsourced accounting. Mainly, they worry that it will be more expensive in the long run compared to hiring someone themselves – like renting an apartment versus buying a house. Some also worry that they will be hit with hidden fees and upcharges along the way that will result in unexpected expenses each month.

The Truth:
Outsourced accounting services are not only less expensive to start, but they also convert a fixed cost to a variable cost, making it easy to scale up or down based on the business’s ongoing needs. When using an accounting provider, you only pay for exactly what you need when you need it, which results in huge cost savings! And, do not fret, reputable accounting services companies will always be upfront with you about their fee structures so you know what to expect before getting started.

Myth 3: It Results in Poor Quality Work
The Myth:
One of today’s biggest concerns for clients is who is doing their bookkeeping and accounting work. Many business owners have heard examples from colleagues of work being outsourced to offshore staff that do not have knowledge of US GAAP unbeknownst to them. As a result, prospective clients can be leery about the idea of outsourcing altogether.

The Truth:
The reality is that you need to know what you’re paying for before you agree to anything because, as is the case in any industry, there are unscrupulous companies out there that will hire the cheapest labor they can find regardless of their qualifications. Now, that’s not to say that just because a company has a team outside of the US that they will do subpar work, but you need to know whether the people working on your company’s financials have the qualifications and skillset to do so effectively. Take the time to research which companies employ experienced, domestic talent and get to know the team before you get started. Trustworthy outsourced accounting companies will have their team members listed on their websites with their credentials or resumes available for you to view. They will also let you speak to a real person before you sign anything and while the work is being done.

As an example, look at our Washington Team page for more information about the consultants we have on our team in that region that span a variety of accounting disciplines and backgrounds. You can learn more about their education, licenses/certifications, professional backgrounds, and core areas of accounting expertise.

Myth 4: It’s Not Secure
The Myth:
There is an old myth still hanging around that outsourcing your accounting is less secure than having an in-house accountant because financial data is being transmitted back and forth. However, with the dramatic rise in remote work over the last five years, this myth is thankfully starting to fade away.

The Truth:
Obviously, you will want to effectively vet any service provider you use – that’s just a good business practice across the board for all kinds of professional services. A top accounting services provider will have strong cyber security measures to safeguard what they do and use industry best practices to protect their clients. In fact, these measures are often more robust than what their clients had been doing previously on their own, which offers a step in security practices without needing to manage anything new internally to utilize this type of additional security.
Furthermore, if you’re considering hiring a new accountant these days, you will be confronting the same types of security questions and challenges whether that person is a direct employee of yours or whether that person is a consultant because very few accountants are working entirely on-site anymore. It’s better to leave these types of issues up to the professionals so you can focus on running your business.

Myth 5: It’s the Same as Hiring a Remote Accountant
The Myth:
In light of the preference among accountants for remote work these days there is a new myth emerging. We are hearing more and more these days that business owners are viewing remote accountants and outsourced accounting consultants as one in the same.

The Truth:
Outsourcing your accounting needs is not the same as hiring a fully remote accountant because accounting companies employ a large team of accountants, which contributes to the strength of each individual accountant in the practice. Unlike an accounting employee, who may have a professional network that they can draw on if they need advice, accounting companies have teams that can easily leverage each other’s strengths to do better work. When they face challenges and oddities arise, they can consult one another to significantly improve their ongoing performance and overall outcomes for their clients.

When you need an accounting services company that checks all the boxes, we can help! Our team of US-based accountants will work securely on your financial data to set your mind at ease about privacy. Our competitive fees for outsourced accounting services are also less expensive than hiring an accountant in-house. And, by hiring a consulting accountant, you will have the added benefit of having a highly experienced team backing up their work to provide added business support when needed. Reach out to us today for more information and find out why more companies choose The ASP Team for their accounting needs!