Online bookkeeping seemed to be increasing in popularity over the past few years, or, at least, that was what we were able to conclude. Numerous entrepreneur and business owners were both using online bookkeeping services, and praising the usefulness of outsourcing your bookkeeping.
However, we can see that online bookkeeping, in fact, has not enjoyed an increase in popularity. In fact, interest, and trust in online bookkeeping are still fluctuating. On one hand, we have numerous people sharing their stories of the online bookkeeping services they have acquired, explaining how their lives have improved due to having another person take care of the possibly most tedious task of a business owner or an entrepreneur. They have claimed, numerous times, how they have more free time that they can use to focus on expanding their business, and how their businesses are flourishing as a result.
If that is the case, then why are not more people becoming interested in online bookkeeping services? Below, we have gathered several reasons why this might be happening.
1. Lack of trust and credentials
Lack of trust in the bookkeepers and in their credentials is not surprising. After all, we are talking about online bookkeeping – and since it is the internet, it is wise to check and re-check a piece of information before trusting in it. As a result, many people might actively choose not to hire an online bookkeeper, not to buy the software and the service, because they do not trust the provider. Even if they have the highest credentials and witness testimonials, some people prefer to do their own bookkeeping, no matter how tedious it gets. Often, you know that if you want it done right, you have to do it yourself, and the same applies to doing your books.
2. The risk can be too big
The mistrust discussed above is not without precedent. After all, when you are outsourcing your bookkeeping, especially if you are doing it online with a lot of options for digital signatures, etc., you are giving that person, or a company, most of your personal information, along with the financial information about your company. Most of all, you will not be able to predict if something were to go wrong – unless it does. In that situation, it might be difficult to remain calm. Moreover, if you are not able to find online bookkeeping services in your area, which eliminates face-to-face meetings in real life, which means most of your personal information will be in a complete stranger’s hands.
3. Too much power over your finances
Most of the modern bookkeeping services come in a full package – that means that the bookkeeper will offer to do everything for you, including signing checks and other documents that previously, you had to sign personally after reviewing everything to make sure is right. However, today, we have digital signatures – which you might delegate to the bookkeepers to have even that task out of your hands. That is a lot of power into someone else’s hands, and if they are not a decent bookkeeper, nothing is stopping them from stealing money from you. In addition, you might think you are paying someone to let you know if there is a problem with your finances – but you might not get a warning if getting a warning is considered an extra service you have not paid for. You can avoid this by creating a good contract for your bookkeeper, but still, how can you be sure that they are going to carry it out?
4. Cloud bookkeeping – is it safe?
Online bookkeeping is based on the cloud, that is, your information is saved online. As such, it might be prone to attacks. If the service does not offer appropriate protection, then your information is up for grabs, and anyone can get access to it. Once again, it takes a lot of trust and faith both in modern technology and in your service provider to be able to use this service and actually reap the benefits. Otherwise, you might simply add more stress to your life. Moreover, when you are an entrepreneur or a small business owner, your work and your life tend to mix up a lot more than average, and as such, people are aware that getting an online bookkeeping service might be too troublesome for them. It is not a surprise, considering it is difficult to accept a service and outsource an important task as bookkeeping to a virtual stranger.
5. Additional problems
You might do everything right and still land an indecent bookkeeper. The result of that action might lead to your financial ruin, rather than allow you to expand your business. The main reason why bookkeeping is one of the most important tasks of an entrepreneur or a small business owner is the fact that even the smallest of errors can have a great negative effect. Nevertheless, if you hire a bookkeeper who does not have enough experience, or is simply out to scam you and your business, you might end up with additional problems that will take weeks, months, maybe even years to fix. Worst-case scenario, of course, is you reaching your financial ruin. All that hard work you have put into running your business can go down the drain if you are not careful whom you are hiring to do your books.
Most people are aware of most of the things we have described. For that reason, despite online bookkeeping receiving praises left and right, the general interest in it is still fluctuating. Online bookkeeping is not bad – what we described above are, after all, only possibilities. There are online bookkeepers who will take the load on and do a good job, and actually help you expand your business. However, outsourcing your bookkeeping online to a third party has yet to become the norm, and interest in it is still fluctuating. We could not say if this fluctuating trend will continue, or if online bookkeeping will lose popularity altogether. However, one thing is sure. If you do your homework, or have a trusted friend recommend you an online bookkeeper, chances are you will reap all of the benefits that outsourcing your bookkeeping will bring you.