Why Small Businesses Should Outsource Their Bookkeeping

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If there’s one thing that every business requires in order to be successful, it’s financial management and tracking. Refusing to track where your money is, has been, and where it’s headed can potentially lead to overspending, or worse coming up short. Bookkeeping is the cornerstone of every company’s financial situation. This is where you find out exactly how much money you have and what’s it being spent on. However, every business is different and as such performs their bookkeeping utilizing various methods. One of the most efficient ways to manage your finances is to outsource your bookkeeping services to an accounting firm. In today’s blog post were going to discuss why small businesses should outsource their bookkeeping services.

#10. Save Money  

Running a business is all about two things: make as much money as possible while saving just as much in the process. One of the biggest expenses any business will face is hiring employees. Money must be spent on additional office space and benefits, not to mention their regular and overtime pay. This is where outsourcing a bookkeeper comes in handy. By outsourcing your help, you can avoid the overhead expenses associated with hiring in-house. Thanks to effective bookkeeping software and the internet, an outsourced accountant can track your finances from any location, eliminating the need to purchase additional office space and equipment.

Overall Benefits include:

  • More Free Office Space
  • Less Equipment
  • Cheaper Than Hiring In-house
  • No Insurance Costs Needed

#9. Save Time  

Time is crucial when it comes to running a business. That being said, keeping track of your company’s finances can take up a considerable amount of your time. This precious time could be allocated towards improving your products or strengthening your marketing strategy. Outsourcing your bookkeeping services frees up more time, allowing to focus on other areas within your business. Most outsourced bookkeepers will provide you with detailed financial reports, as well as alert you of suspicious activity. This way you can turn your attention to your company’s day to day operations.

Overall Benefits Include:

  • Financial Reports Provide Financial Overview
  • Focus On Other Business Matters
  • Less of a Need to Balance Day-to-Day Operations
  • Continuously Keep You Inform

#8. More Efficient Work

Whether you run a tight ship or not, your place of business can be a very distracting environment. From other employees to customers, the chances of your bookkeeper taking their eyes off your balance sheet or making a mistake is fairly high. The only real way to ensure efficient work from your bookkeeper is to place them in an environment that allows for absolute concentration. Outsourced Bookkeepers tend to operate in an isolated space that allows them to work in peace. This usually means more accurate and efficient bookkeeping, which can make the difference between success and failure.

Overall Benefits Include:

  • More Focused Environment
  • More Accurate Reporting
  • Less Distractions

#7. Additional Level of Expertise

While many people believe that bookkeeping is simple, it is in fact a skill in its own right. You’re going to want a bookkeeper with a high level of expertise, and what better place to find someone than an accounting and bookkeeping firm? These individuals live and breathe numbers as their sole purpose is to ensure that everything is functioning efficiently from a financial standpoint. Outsourced bookkeepers know the ins and outs of every business model and can easily accommodate to your specific practices. At the end of the day you don’t just pay for a service but experience as well, and by outsourcing your bookkeeping services, that’s exactly what you’ll get.

Overall Benefits Include:

  • Years of Experience
  • High Level of Expertise

#6. Utilize The Industry’s Best Tools

Accounting and bookkeeping software can get expensive, especially if we’re talking about top-of-line brands. Fortunately, by investing in an outsourced bookkeeper, this expense is no longer your responsibility. Bookkeeping firms come with high-end bookkeeping software including QuickBooks and Peachtree. When outsourcing your bookkeeping services, you’re basically also paying for the industry’s best in regards to software without the hassle of managing it yourself. Another thing to consider is the constantly changing regulations that come along with bookkeeping as well. High-quality accounting tools seamlessly adjust to these changes, which is something you’ll need to prevent falling behind.

Overall Benefits Include:

  • Eliminates The Need to Purchase Software
  • Consistently Updated
  • Bookkeepers Are Highly Skilled in Software
  • Software For Various Business Models

 #5. Your Bookkeeping Is Managed By a Team 

If you’re a small business then chances are that your books are only being kept by one or two individuals. This makes the margin for error significantly larger as there is no one to go over their work. However, bookkeeping firms can potentially have entire team of accountants working on your finances at any given time. This allows for a more organized and efficient bookkeeping process, as well as decreasing the margin for error. A team of bookkeepers creates a system of checks and balances, and also work cohesively to draw an accurate financial conclusion. Just because you’re a small business doesn’t mean you don’t deserve the same care and attention as a fortune 500 corporation.

Overall Benefits Include:

  • Additional Level of Attention
  • Checks and Balances Systems
  • Small Margin for Error

#4. Customize Bookkeeping Practices to Your Liking

As previously stated, the rules and regulations associated with bookkeeping are constantly changing. In addition to this, your business model and practices are completely different from another company’s. This means you require specificity in regards to managing your finances. Bookkeeping firms are well-versed in adapting your practices and making the necessary changes to help you achieve your financial goals. That means anything from finding where corners can be cut as far as budgeting, to discovering which areas of your company require more money.

Overall Benefits Include:

  • Customized Bookkeeping Practices
  • Meets Your Specific Business Needs

#3. Bookkeepers Provide Additional Insight

Professional bookkeepers do more than just help you manage your finances. These are experienced and knowledgeable individuals that provide you tons of insight in regards to what’s coming down the line. Outsourcing your bookkeeping services is the perfect opportunity to pick their brains in order to discover what accounting methods work best, what mistakes to avoid, and where your business is headed. This type of financial insight cannot be found anywhere, so it’s best to take advantage when you have the chance.

Overall Benefits Include:

  • Receive Financial Insight
  • Access to Knowledgeable Individuals

#2. Outsourced Bookkeepers Help You View Your Business Differently

Outsourcing your bookkeeping services allow you to view your business from the outside looking in. Because they do not work for your company internally, outsourced bookkeepers see your business from another perspective. In order to fully understand your business, you must be able to view it from the outside as well as the inside. Things may be looking great internally but a bookkeeper can spot potential issues weeks and sometimes months ahead of time. Use their external perspective to develop more effective strategies and get a better understanding of your company’s financial situation.

Overall Benefits Include:

  • View Your Business From a Different Perspective
  • Better Understanding of Your Business
  • Detect Issues Ahead of Time
  • Develop Effective Financial Strategies

#1. Outsourced Bookkeeping Keeps You Up-to-Date

Ensure that finances are being watched and regulated around the clock with an outsourced bookkeeper. One of the most important aspects of bookkeeping is remaining up-to-date with your records. It’s essential to know exactly where your money is at all times. Losing track of your accounting for even just a second can have serious consequences. Outsourced bookkeeping services place a large emphasis on remaining current with all of your financial information. This data is necessary for creating budgets, filing taxes, as well as managing projections for future performance.

Overall Benefits Include:

  • Receive Up-to-Date Financial Information
  • Assist With Creating Budget, Filing Taxes, Etc.
  • Never Lose Track of Your Financial Data

Honorable Mention: Providing Peace of Mind      

As an honorable mention, outsourcing your bookkeeping services provides you with a sound peace of mind. You can rest easily knowing that your company’s finances are in the hands of people that will treat them with the care they need. Accounting firms will provide monthly or quarterly reports, as well as inform you of potential red flags and suspicious activity. If you ever have any questions or concerns, don’t hesitate to pick up the phone and call as most firms provide you with a support team or direct access to your bookkeepers.

Overall Benefits Include:

  • Less Responsibility
  • Receive Monthly and Quarterly Reports
  • Alerted of Red Flags and Suspicious Activity
  • Access To a Support Team

All in All  

In the end, if you’re a small business then outsourcing your bookkeeping services may be your smartest option. Not only can you potentially save precious time and money but also gain the insight necessary for financial success. Running a small business can be hard work but with a little help from an external bookkeeper, you can run the effective establishment you’ve always wanted to. Good Luck!