The rise of the online community has changed the way in which we do business forever. It has brought us closer to people that can help with our day to day operations as well as backend business needs, enabling our businesses to run smoother and turn more profit. One of the key places that this has really made a difference for business owners is in bookkeeping.
Bookkeeping is much like going to the dentist—no one really wants to take the time out to do it but neglecting the issue can lead to serious repercussions. For the most part, this is why business owners just want to hire someone to do it and not have to think about it themselves until the next tax season.
As a small business owner, it is vital that you are able to monitor the performance of your business. To achieve this you need real-time visibility of your financials and a clear understanding of what the numbers actually mean. Without this you cannot make informed strategic decisions or plan effectively. This is when businesses fail.
Accurate bookkeeping and accounting is essential but it shouldn’t take up all your time each week. As an entrepreneur and small business owner your time is premium and valuable. You should be focusing on developing your business, winning new clients and providing a great service. This is where outsourcing bookkeeping can help you and your business.
Instead of having in house bookkeeping services or doing it yourself, many businesses are finding the multitude of advantages outsourcing bookkeeping operations has.
Here are some of the signs that your business is ready to outsource its bookkeeping:
- Bookkeeping is taking time away from income generating activity or time away from your personal life.
- You have realized the time and money it takes to hire and train an in-house bookkeeper
- Your bookkeeping is so far behind you are making decisions about growing your business without up to date or accurate financials
- You’re losing out on tax saving opportunities
- You need protection against fraud or company theft
- You are in a growth period and you need scalability from your bookkeeper
- You believe you are prepared for an offsite arrangement
Here are some of the benefits of outsourcing bookkeeping:
1. More time to provide value to your clients
As we’ve established, you are more than capable of doing your own bookkeeping but it isn’t the best use of your time. How long do you spend on bookkeeping each week? Now imagine if you had that time to spend on improving your service and adding value to your clients. Not only would this help maintain happy clients who would stay with your company for longer but you’d likely receive more customer referrals as a result!
2. Increased efficiency and focus
One of the key reasons why outsourcing is recommended for businesses is that it helps you increase your efficiency and focus. Without the distraction of bookkeeping you can focus on the actions that will help you achieve your business growth objectives. If it doesn’t directly impact your overall goal you shouldn’t be wasting your valuable time on it.
3. Risk Management and Accuracy
As a business owner, you are not a trained bookkeeper. That means you spend double (sometimes even triple) the hours it would take a trained bookkeeper to bring your accounts up-to-date. In addition to increased efficiency, a trained outsourced bookkeeper would be more accurate.
4. Access to a highly trained bookkeeper
Outsourced bookkeeping gives you instant access to highly trained professionals who are constantly learning and honing their craft. This works hand in hand with software solutions which will streamline the process. Working with a bookkeeping expert will ensure your bookkeeping is always the best it can be. Leave the experts to what they are good at so you can focus on what you are good at.
5. Benefit from top bookkeeping systems
An outsourced bookkeeper will use the latest systems, technology and processes available on the market which you will benefit from. Your bookkeeping processes will be efficient and conducted using the best software – no more spreadsheets and receipts in boxes! This will give you better visibility of your numbers so you can make better, informed decisions.
6. It gets done regardless of your schedule
If you handle your own bookkeeping in-house you have to be prepared to make up time when you are sick or on holiday. When you hire bookkeeping services you no longer have to worry about when you’ll get the time or how you’ll fit it into your schedule. You can feel confident that your outsourced bookkeeper will meet deadlines regardless.
7. Save money
Many business owners avoid outsourcing their bookkeeping because they believe they are saving money by doing it themselves. In reality, your time is worth more than keeping your bookkeeping in-house. You should be bringing in new business and developing the business, not coding transactions.
8. You don’t have to hire an employee
Small businesses do not need an in-house bookkeeper. If you hire an outsourced bookkeeper you can avoid paying employee overheads, holiday pay, payroll taxes, and training costs. This is important when it comes to improving your profit margin.
9. Focused work staff
By eliminating the distractions of the office from their jobs, places that take bookkeeping jobs are able to provide clients with more focused work. It’s hard for a bookkeeper to do their jobs around the hustle and bustle of a business—removing them from the site by outsourcing not only helps you focus on your business, it helps them focus on your business as well.
10. Business growth
Outsourcing your bookkeeping will free up your valuable time to focus on your business growth strategies. Plus accurate and reliable finances are key to making the right important decisions. Outsourced bookkeeping will put you in a better position to achieve your vision.
Thanks to the widespread availability of cloud technology, it’s now easier than ever to outsource bookkeeping tasks and the benefits are crystal clear. It’s far less risky, far more efficient, and incredibly cost-effective. Plus with the extra time gained you can focus on attracting and selling to new customers so you can reach your growth targets.