When you’re a start-up or a small business you are hopefully going to be busy. You need to work at your job of selling your products or proving your service and marketing your business. It’s not surprising that accounting tasks, such as tracking your income and expenses often take a back seat.
Bookkeeping isn’t everyone’s cup of tea. In fact, it is sometimes said that doing your bookkeeping is a bit like going to the dentist – you don’t really want to do it, but you need to keep on top of it. If you don’t there can be serious consequences.
So, like keeping an eye on your teeth, you need to keep an eye on those in-comings and outgoings. Regularly.
Doing this is probably only a few hours a month, but it’s time you could be spending on your business.
So why would I outsource my bookkeeping?
Here are 5 reasons why you might want to consider outsourcing your bookkeeping function.
Saving money
Having employees can be expensive and by outsourcing to a reputable firm you reduce the cost associated with having employees.
You will save money on payroll taxes, benefits, health insurance and staying compliant with the ever-changing laws. By outsourcing your bookkeeping, you only pay for what you need. Nothing more, nothing less. So, if you only need a few hours each month, that’s what you are paying for.
You can save on the overhead costs like office space, supplies, computer and software expenses. Instead of you having to pay for expensive accounting software and the constant upgrades, your accountant will be covering this.
Saving Time
As a business owner you need to focus on what you are the expert at. Your business.
If you spend, say, an hour a day doing your accounts, then that’s an hour of productive time you’re losing. What is probably worse is that you are doing your accounts at the end of your working day or over the weekend.
If accounting really isn’t your thing then you are probably going to neglect it and then spend too much of your time trying to figure out how to do it and Googling the difference between fixed, variable, accrued, and operational expenses.
Outsourcing your business’s bookkeeping operations frees up valuable time that can be put into building your company.
Bringing in expertise
Outsourcing gives you a great way to have full-time knowledge on your team without having to pay for it around the clock Putting your books into the hands of a highly skilled staff, who understand the best practices, understand the timelines, and can flex their staff will make your job easier and your business more efficient
Most businesses can’t afford to pay for the extremely expensive bookkeeping programs nor can they afford to spend the time keeping up with changing laws and regulations. When you outsource the expertise, they will have the system and maintain them – and back up your records.
That expertise with also bring accuracy – that’s what bookkeepers are good at. It’s their job to be meticulous and a dab hand with spreadsheets.
Improve you cashflow
A knowledgeable bookkeeper will be aware of what you are spending at any given time and will be able to make the necessary adjustment and decisions to efficiently run your business.
They can help with chasing customer for payments. And with today’s technology there are plenty of ways to get paid immediately. Your outsourced bookkeeper will be up to date with these methods and be able to advise you.
Your bookkeeper should manage accounts payables and get your vendors paid on time. This will help you earn trust and good business credit.
They can also help with your budgeting and projects, which will hep you plan for a successful future.
Be tax ready
Most people will wait until the last minute when they need to get their financials ready for tax submission. This can be stressful and can actually be costlier than if you had just kept it up every month. Your bookkeeper will be able to make sure your financials are accurate and up to date so that tax returns are much easier for you.
Next steps?
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Great post! So many people think they can just handle it themselves. But, the truth is, as your business grows and things get more complicated, you’re going to save yourself so much time, effort and stress if you outsource your bookkeeping needs. thanks for sharing your thoughts!