Top 10 Reasons to Outsource Your Bookkeeping
Owning your own business is a very rewarding accomplishment; however it comes with a tremendous amount of responsibility and time spent. When I meet with new or existing business owners, time and time again, the frustration is bookkeeping. You may say the bookkeeping is manageable; however most if not all wait until the financials are needed either for a new loan, filing taxes, providing to new investors, etc.
I have provide a list of the Top 10 reasons why a business owner should outsource the bookkeeping.
1. Saving Time
Perhaps the biggest reason I have come across when working with business owners is the amount of time that is saved. They have more time freed up to focus on revenue generating activities, time with family and friends, more time to focus on growth and strategies. One less task to manage or individual to manage on a daily or weekly basis. A professional bookkeeping company will shoulder the burden of getting the owner accurate and timely financials often at a lower cost then an in house bookkeeper.
2. Motivation/Do what you love
Note enough emphasis can be placed on this reason. No business owner I have ever spoken with started his/her own business to spend a large amount of time doing accounting work. It is just not their passion and when you are not doing something you love, you are not motivated to get it done. Focus your energy on the passion that motivated you to start the business. Outsource your bookkeeping to a professional that can handle it for you.
3. Value Creation
By outsourcing your bookkeeping, you are automatically freeing yourself to focus on other tasks. A good bookkeeper will be able to provide valuable value added services to your business. They can provide you with customize reporting, privacy, advice and much more.
4. Privacy
As a business owner, it is a good idea to keep your records confidential. Your staff does not need to see payroll information, accounting records, banking information. Using an outsourced bookkeeping firm allows your financials to be private and away from curious eyes. All a staff member needs to see is how much money there is in the bank or the business has made and they create a sense of wanting more money because you can afford it.
5. Unbiased Advice
In times of financial hardships, tough decisions need to be made. An outsourced bookkeeper will be more unbiased in the decision making process than an staff member who has a lot to loose.
6. Improved Control
This may sound incorrect, but an outsourced bookkeeper should provide you with more control. Choosing the type of service you need, how often you need it done, what reports you want to see, where you want to service to be done (remote or on location).
7. Less Money
Paying a full time or part time in house bookkeeper will be more expensive in the long run. One study suggest that the actual cost of an employee is one and a half times their hourly rate. Having to pay for benefits, payroll taxes, space, equipment all adds up. Hiring a contractor enables you to pay for service only when needed. Hiring a bookkeeper outside of your company can provide a cost benefit since they have an entire business focused on tracking finances and usually more efficient.
When choosing a bookkeeping firm, look for value in their advice, procedures and knowledge. Hiring a large accounting firm to do your monthly accounting tasks can be costly and over-kill. Leave the big firms to tax planning, tax return preparation and audit work.
8. Peace of Mind
Your business financials are not something you want to leave up to chance. Choosing to work with a reputable bookkeeping firm provides you the peace of mind that your financials are being handled by an expert. Everything will be done properly in a timely and accurate manner. The bookkeeper should be certified in the software he/she is using, licensed and able to train you. You should feel confident that each time you look at your financials everything is correct.
9. Scalability Options
Outsourcing your bookkeeping provides you, as a business owner, the ability to scale your accounting services to fit your business needs. Whether you are looking to grow or shrink down, an outsourced bookkeeper can provide you with flexible options that an employee may not be able to provide.
10. Access to Tools and Knowledge
Starting a business can be expensive. Buying software and tools to track finances is an unnecessary expense that can disappear when you choose to outsource bookkeeping. They will already have all of the software, tools and knowledge at your disposal. Let someone that focuses their resources on helping business owners with their finances. Don't waste time or money searching for answers, buying software you may not use when a simple phone call or email can solve all of your bookkeeping problems. They will be able to work closely with your CPA to provide you with the best service combination possible so that you can grow.
In conclusion
This is a general list of benefits that I have come across or have been highlighted in when working with my clients. Do your due diligence when looking to outsource your bookkeeping. Just like any other business, no two bookkeeping firms are the same.
If you have any questions, comments or would like some more information please contact me.