Risks of In-House Bookkeeping

Most people who start a business do so in a field they know at least a little bit about, but no matter what industry you’re in, we can tell you that running a business is next to impossible without good bookkeeping. Some business owners opt to have all of their bookkeeping done in house, and while this is something that can be done, we wanted to talk about some of the risks that come with in-house bookkeeping.

Don’t Rely on a Lone Accountant

When doing bookkeeping in-house, many business owners rely on a lone accountant. No matter how skilled this accountant may be, humans are prone to mistakes, and without someone else to revise and check their work, these mistakes can slip through the cracks. If you’re going to have your own accounting department, make sure there’s more than one member.

There’s Potential for Internal Fraud

Having an in-house accounting department can lead to issues with fraud, and this is especially true if the person doing the accounting has other jobs as well. When you work with a reputable third-party accounting firm, there are a number of parameters that are set in place to prevent fraud from occurring. If you’re managing your accounting department yourself and don’t have experience doing so, most likely you have insufficient fraud failsafes established.

In-House Accountants Can Fall Behind on Training

Any accounting firm that’s worth its salt will regularly send its accountants to learn all the most up-to-date accounting practices and to familiarize themselves with updates in accounting software. Over the years, we’ve found that most in-house accountants tend to fall behind in terms of training.

Work with a Professional Accounting Firm in Maryland

Here at CFO Source, we’ve been helping businesses, large and small, with their accounting needs for years. Some smaller businesses can get away with having an in-house accounting department, but the bigger your business becomes, the more your need for a professional external accounting firm will become. Reach out to us today!