We often come across clients at vital turning points in their development phase. Business owners find it challenging to manage their business transactions whilst also trying to manage their business.
Many people who start a business make the same mistake. They want to do everything, which ends up making their business suffer. The problem they never see the consequences of their actions. They are so busy being involved with the day-to-day of their business, that they are unaware of the actual health of their business.
The main thing that suffers when this occurs is the business’s performance. This leads to stagnated growth, which affects the business’s financial health. This can lead to a disaster occurring that blindsides you out of nowhere. But the reality is the problem was right under your nose – you were just too busy trying to do everyone else’s job.
If you are not carefully watching your business’s finances then who is? If you have a problem fully letting go so your employees can do their jobs, then chances are you are responsible for looking over your business’s finances. But you can’t effectively handle this very important task if you are in charge of ensuring your business is constantly growing. You need someone else to handle this process, so they can report back to you what needs to be done to improve your business’s finances.
Business owners do not start a business to become a bookkeeper and as it is generally not their area of expertise, it can take them a long time to manage their books. It is known to all business owners that records and transactions play an important role and need to be updated, consistent and accurate. As a solution, the business owners hire in-house bookkeepers, but this is not the best solution. Outsourcing your bookkeeping allows business owners to get back to what they do best whilst leaving their books in the hand of professional and trusted experts.
Here’s how outsourcing bookkeeping and accounting can help grow your business:
1. Helps the Company Grow Faster
Outsourcing is done for one good reason. It enables you to get maximized returns on your competencies. It gives you valuable time to focus on growing your business. You can bring in more customers by effective marketing strategies and spending more time on your customers, not your financials. You do not have to manage hiring, training, reviewing, maintaining, firing processes. Outsourcing helps you reduce your costs in the short and long run.
2. Projects and New Clients
When you outsource your bookkeeping, your service delivery capability increases as you free up more time and are more available to your clients and your team. You can reduce the risk of losing existing or new clients or projects, for just not having the time.
3. Pay Only for Actual Work Done
When you outsource bookkeeping, you pay only for the real work done. You don’t have to pay for overheads, payroll taxes, vacation, superannuation, sick leave, training, etc. It is as simple as paying someone to get the job done. No wasted time on training, and additional costs associated with onboarding and maintaining a new team member.
4. Improvement in Productivity and Quality
The errors in accounting, the delays, and the need for reviews from in-house team members result in loss of money. If you outsource your bookkeeping, the work is done right the first time, and there is no wasted time or money in re-doing something that could have done been done correctly in the first place. You receive work of quality.
5. Get Professional Bookkeepers and Accountants
Finances can be very complex due to all the moving parts within your business. When you choose to outsource your bookkeeping, you are placing your financial records in the hands of the professional accountants that do its best as a team. This is very important because bookkeeping can take up a lot of time to do accurately. One bookkeeper will not be enough to find every angle that can benefit your company. Therefore, when you outsource, you are provided a team of workers who are checking each other’s work to ensure that your business is provided the best services possible. You are also separating your business’s duties to perform effectively. When your various business functions are operating effectively, they align together to produce a better and more cohesive unit.
6. Better Quality Service
The staffs of Outsourcing companies get their training by working in multiple firms. When you outsource your bookkeeping, you get the best minds working for your firm. It finally becomes a huge advantage, and you get to deliver the best quality service.
7. Introduces New Services
Outsourcing services such as bookkeeping from within your business can allow you to grow new services that can provide you with increased income and the availability to hire a new expert team to assist in this new service. You can leverage the capabilities of an outsourced bookkeeper, to leverage your own business and your services provided.
8. Adjustment with Business Cycles
Outsourcing helps you to increase staffing, and you can adjust quickly to your business cycle. It provides you flexibility which would have been difficult to achieve on your own.
9. Earn More, Work Less
The advantage of outsourcing is you earn more money without having to work more. You save yourself valuable time. First, you save money by without having to give payroll taxes, paid leaves, overheads, super, etc. You also do not have to pay for lost productivity. You earn money on time and get an expert team. You get to have a balance on the work-life cycle that not everyone is able to have.
Outsourcing your bookkeeping will help your business immensely. As an entrepreneur, you are not a superhero. That is why you hire employees who can help you build your business. But employees can be expensive. Therefore, when you want the benefit of having a dedicated staff, but do not have the money to bring on additional employees. Outsourcing your bookkeeping will bring you expert services for the fraction of the price of having full-time employees.