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. 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.
Why Outsource Your Bookkeeping?
- Privacy: Internal financial records are vital. This is the information; a business owner wants to be private and secure. Finding someone to do this job and also maintain confidentiality is not an easy task. Outsourcing your bookkeeping to a bookkeeping service with strong client acknowledgment can ensure privacy and owners no longer need to worry about their bookkeeping.
- Scalability: A business usually starts with small needs, and as it grows it requires bookkeeping services. An outsourced bookkeeping service with full control enables the ability to scale the service as per the business needs without having to hire additional team members.
- Training and Managing: Usually business owners do not know more about bookkeeping than bookkeepers do, so they are not in a position to train or manage the bookkeeping staff. Having a bookkeeper with all the needed knowledge and expertise required to do the job right the first time is a significant benefit to both the business owner and the business.
- Maximizing Resources: If a business owner tries to save money by doing bookkeeping on their own, they are wasting their valuable time. They are performing tasks they could have an expert do, and could spend their time more wisely in an area of the business that highlights their expertise. When a business owner outsources their bookkeeping, they are saving time that can be used to grow their business or focus on parts of the business that requires some attention.
- Tax and Audit Ready Financials: When you’re using outsourced bookkeeping to manage the financial records, there is no need to worry about the book’s accuracy or integrity. Outsourced bookkeeping makes sure data is always correct and up to date for the business owner.
Benefits Of Outsourcing Bookkeeping:
1. Outsourcing helps the firm grow faster: Outsourcing is done for one good reason. It enables you to get maximized return 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 for the 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. Reduces the risk of losing staff: When staff suddenly leave, the effect this can have on the operation of a business can be quite significant. It means onboarding a new team member, it means the stress of either you or another team member taking on this work until you find someone, it is the extended working hours to ensure all the work gets done. Small or medium firms do not have ‘buffer staff’ to handle those kinds of situations. If you have outsourced your bookkeeping, you get to work with a reliable expert team, and there is always a backup plan. With outsourced bookkeepers, you do not need to worry about losing staff as the organization has additional team members available to adjust with such situations and leaves no impact on the services they are used to being provided.
5. Improvement in Productivity and Quality: The errors in accounting, the delays, and the need for reviews from in-house team member’s results 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.
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 for 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.
10. Increase valuation with higher productivity: When a firm is being bought, the buyer carefully evaluates the profitability of the firm which was purchased. Outsourcing bookkeeping makes the firm more profitable than the firms which have not outsourced their bookkeeping. It increases the value of the firm. When you’re raising borrowed capital, higher valuation can get better terms and can spare you thousands of dollars.
Bookkeeping outsourcing helps you increase your profitability, reliability and ensure accuracy whilst enabling you to get back to the things you want to do most.