Debunking 9 Biggest Myths about Using A Virtual Back Office

Vinnie Fisher

Outsourcing a company’s accounting services, or in other words, utilizing a virtual back office solution is becoming a common practice among businesses in the United States. A majority of small to medium-sized enterprises and big multi-nationals are beginning to outsource to virtual back office accounting firms to manage their finances.

A virtual back office improves transparency on how capital is invested. It sheds light on what the main (and the weak) revenue streams of the company are. It also improves the performance of any type of business.

However, outsourcing a company’s accounting is a relatively new concept. Many people do not understand it – leading to numerous myths about the service. These common misconceptions have caused business owners to become reluctant to collaborating with accounting firms. Below, we are debunking some of the most common myths regarding outsourcing your accounting services.


  1. Outsourcing your accounting leads to loss of control over the financials of the business

As the business owner, you’re the one who’s in control of business decisions and used to things working that way. Every owner wants to be in control, particularly over the finances of the company. This is understandable. In a recent study conducted by the Association of Chartered Certified Accountants, a majority of business owners acknowledged outsourcing their accounting services would reduce their costs. But they were concerned about losing control over the finances of the business.

A majority of business owners believe that by allowing an external accounting firm to manage their finances, they are essentially surrendering the internal control they possess. However, if you use a virtual back office for your accounting services, you will be able to keep your finances in order.

This will give you more control due to the fact that you will have a greater understanding of the financial position of your business. Having the correct information will enable you to make the best decisions for the company. Hence, giving you a competitive edge.


  1. Outsourcing your accounting services is expensive and only the large companies can afford it

This is simply not true. Contrary to this misconception, using virtual back office accounting services first began as an option targeting smaller businesses. They could not afford to hire a full-time internal accountant. More recently, this service has grown to become an option for big companies that are looking to cut costs.

In fact, outsourcing your accounting is beneficial, especially to small and medium-sized businesses. A virtual back office saves small businesses 40% to 60% (on average) compared to the costs of hiring someone in-house.


  1. Sending information to a virtual back office accounting firm is not secure

This is considered to be partially true because technically, nothing is 100 percent secure. With this knowledge, accounting firms put the most watertight security measures in place. This ensures confidential information doesn’t get lost or leaked to the public or a competitor.

It doesn’t matter if you keep your financial data in your home office or in your business office. There is a chance for potential security breaches. So, to give your financial information the best security possible, store them with a reputable accounting firm.

Most virtual back office accounting firms have programs that digitally retrieve the files you send to them. They have their own in-built security system to keep the data secure.


  1. QuickBooks should be adequate

QuickBooks is a great accounting software that is heavily used by many virtual back office accounting firms. However, it is not sufficient. Most business owners cannot use it to its full potential. Hiring accounting professionals with expertise using this software will guarantee it is fully utilized. You will, in turn, get factual and better financial reports.

The disadvantages of relying exclusively on QuickBooks include:

  • Business owners are not sure if they utilizing this tool correctly.
  • It tends to take the owner away from his business
  • As the company grows, the systems will become more complex, and they will require more advanced QuickBooks skills, which the business owner doesn’t possess.


  1. Sending files to a virtual back office accounting firm takes a long time

Basically, this will depend on how you have set up your business. If you are an entrepreneur who is technology savvy, you can easily and quickly send documents electronically through Dropbox or email.


  1. Costs can get out of control

Your company is billed for the accounting services offered on either an hourly rate or according to the project. This is mainly dependent on the accounting firm or the contract you’re working with. This may sometimes make the final cost unpredictable for the business owner. However, if you hire a virtual back office that is reputable and professional they will do their job to ensure that you are only charged for actual services rendered to your company, and nothing more.

Some companies even have a fee system where they charge you monthly to keep your costs stable and concise. You also have the benefit of paying for only what you use. Your services can be personalized so you are not paying for more or less than what you need.


  1. Even after utilizing a virtual back office, you will still require an internal accountant

Back office accounting services are designed in a way that they should take the cumbersome accounting job from your company. Therefore, freeing you and your staff so you can concentrate your skills where they are most required. When you collaborate with a professional accounting firm, you will not have any need for an internal accountant.


  1. Outsourcing your accounting services is a complicated process

It is not a difficult process to get an accounting firm that is perfect for your needs. It is especially easy if you have been keeping a good record of the financials of your company. Or even if you haven’t kept the best financial records, an outsourced office can help you with your accounting needs. Normally, it takes about two weeks to get a great accounting firm and finalize all the paperwork.


  1. Outsourcing your accounting services is only necessary when it is time for filing tax returns

While accounting is very vital when it comes to filing annual tax returns for a business… The truth is that accounting services are a necessity throughout the year. Your company is able to get specific services such as your own use of a CFO when you need one. You aren’t wasting money and resources on an in-house CFO that you may not be using all the time.

Hiring a virtual back office accounting firm enables you to have an accurate picture of how your business is performing financially. This, in turn, helps you make the best decisions for your company!

Share This Article

9 Biggest Myths of Using A Virtual Back Office - Fully Accountable
Article Name
9 Biggest Myths of Using A Virtual Back Office - Fully Accountable
A virtual back office improves transparency and business performance. This article debunks 9 common myths about outsourcing your accounting services.
Publisher Name
Fully Accountable
Publisher Logo
Go Up
virtual assistantPersonality types

Customer Avatar

Decide whether your products are true to your company’s mission …

The Top 10 KPI's Magazine

The Real Secret Weapon to Growth, Scale, and Profitability of your Digital Business

Outsmart Business

There are many reasons why organizations, especially small…

Benchmarking for Success

How to Use Industry and Competitor Key Performance Indicators (KPIs)

Beyond Your Shadow

Discover the 4P’s that will help you grow Beyond Your Shadow.

Keep Pulse

Why the company pulse is so important and how you can check yours!

Internal Controls

Reduce your risk of fraud by taking these steps …

Five and a Half

Creating a budget is one of the most common unfilled goals of small business…

What Accountants

E-commerce has many advantages for businesses and accountants to grow …

Driving Business

Dashboard reports are a series of charts that track results for key…

The COGS Report

This will show you how to measure the actual profit on products and services…

Cash Flow Best

The 5 Rules of Cash Flow ‘Best Practices’ for Small Businesses…

Services Audit

Describe what you offer as a service and identify whether it is aligned …

Products Audit

Decide whether your products are true to your company’s mission …

The Labor Indicators

This report focuses on specific Key Performance Indicators (KPIs) every service …

DIY Metrics

Every business has a series of key performance indicators (KPIs). Unlike metrics, …

Sample Metrics

This report focuses on specific Key Performance Indicators (KPIs) every service …

Recovering Your Business After the Pandemic

How Better Data Improves Your Decision Making for Your eCommerce or Digital Business