Outsourcing your bookkeeping can benefit your business by saving you time and costs.
Keeping your books up to date is important if you care about your business. Without quality bookkeeping, you won’t know how much cash is coming in or going out. You will have no idea as to whether you are meeting your goals or even running a financially successful business. Bookkeeping is one of those tasks that is so often pushed aside and left to build up. Without up to date bookkeeping your accountant can’t do their job. So, either you will pay expensive hourly rates to have an accountant do bookkeeping work at the end of the year or you will go without financial statements, which isn’t an option. Neither is a good idea. Instead, outsource the number crunching—pay someone else to do it so you can focus on what’s really important for your business.
Check out our top 13 reasons to outsource your bookkeeping below:
Focus on Growth - The question to think about is: 'what can you do with the extra time you will have, if you outsource?' Can that time be used better, to bring more revenue by meeting, networking and building relationships with your customers? Every minute you spend on your books is a minute you aren’t growing your business. There are plenty of accountants and bookkeepers out there who can do your books better and more efficiently than you, but no one can grow your company better that you can.
Save on Staffing & Overhead Costs – Having staff is expensive! You have overhead costs such as; office space, computers, software expenses, office supplies and employee expenses such as, payroll, benefits, training etc. The costs add up! Outsourcing your accounting can actually lower your total costs by eliminating these expenses.
Only Pay for Bookkeeping When You Need It – Paying full or part-time wages for a bookkeeper will ultimately be more expensive than outsourcing your bookkeeping. You will only pay for the services you actually need, and chances are, someone whose entire business is built on tracking finances will be far more efficient at bookkeeping than you!
Expertise - Outsourcing gives you a great way to have full-time knowledge, without having to pay for it around the clock. Accuracy is very important in bookkeeping, both from a profit standpoint and a legal one. Professional bookkeepers know the tax and expense laws backwards and forwards—it’s their job. By putting your books into the hands of a highly skilled bookkeeping team, who understand the best practices it ensures that your books are always up to date, payroll is done on time and correctly and you’re not at risk of being subjected to penalties due to inaccurate paperwork and underpayments
Privacy/Less Risk of Theft - There are few things more guarded in a business than internal financial records. This is information that an owner wants kept private and secure. Finding someone you can trust to do the job well, stay with the company long term, and maintain confidentiality is not a simple task… Say you hire a part-time internal bookkeeper, that person now has access to all of your company’s confidential information: bank accounts, credit cards, financial statements, etc. That employee leaves your company for whatever reason, they still know your financial information. You now have to replace them and yet another person has access to the same confidential information. By increasing the number of people with your information, you are increasing your risk of theft. By outsourcing your bookkeeping, you also have a third party to audit your money trail. You’ll decrease your risk of internal fraud by having an impartial standard of checks and balances, which will also help improve compliance.
Team vs Individual - It’s never good to have such important information and processes handled by just one person. Working with an outsourced accounting team, you are protected against the risk that your bookkeeper may move, quit, go on vacation, fall sick or take maternity leave etc.
Tax Ready Financials - If you’re like most you wait until GST or tax time to deal with your business accounting. This can cause a lot of stress, and actually be costlier than if you had just kept it up to date. Your bookkeeper will be able to make sure your financials are accurate so that your Accountant can process you returns without any questions.
Improve Cashflow - A solid bookkeeper should be able to help you forecast for a successful future. You’ll be aware of your cash needs at all times and will be able to make the necessary adjustment and decisions to efficiently run your business. Cash is king!
Get Paid on Time & Pay your Bills on Time - Do you hate the task of chasing customers for payments? outsourcing your bookkeeping can take that task off your “to-do” list. Your bookkeeper can also manage your accounts payable and get your bills paid on time. Helping you earn trust and good business credit.
Improved Processes - By outsourcing your accounting / bookkeeping, it provides an opportunity to upgrade and improve your current processes and systems. Whether it’s having access to the latest accounting software or improving your payroll processes, implementing up-to-date accounting procedures can help improve service levels, reduce costs, create better cash flow and position your company for growth.
Access to Best in Class Software - Choosing the right invoicing, time tracking, expense reporting or payroll software can be arduous. So, stop doing it! Your outsourced accounting team is in the business of knowing all about the best technology solutions to streamline your internal processes.
Scalable - Businesses grow and change – sometimes quickly! An outsourced bookkeeper can help you find creative ways to accommodate growth or deal with cutbacks as they happen. This scalability allows your business to stay nimble and flexible so the changes (even the good ones!) don’t become unforeseen setbacks. Whatever your long-term goals are with your business, earning more money—and keeping more of it—will help you achieve them. Essentially, outsourcing gives you tons of flexibility and options.
Peace of mind - Business finances aren’t something you want to leave up to chance. Choosing to outsource your bookkeeping to an expert gives you confidence your financials are being handled with the utmost integrity and excellence
There are plenty more benefits to outsourcing your bookkeeping... But above all; Outsourcing can save you time, money and stress!
If you have any questions or would like more information, get in touch and let us help you today!