Yes, you should outsource your small business bookkeeping. It’s never been easier to outsource, and small business owners see substantial savings when they hire a remote bookkeeper. Besides the financial benefits, business owners free up a significant amount of time spent on business accounting.
If you are a business owner or decision maker asking, “Should I outsource my bookkeeping?” consider seven reasons the answer is a most definite “yes.”
1. Because Expertise Matters
Let’s face it, no one is born knowing how to do books, and your business success depends on accuracy. Having a well-trained professional on your side means you can make informed choices about your company’s finances.
When you put your books in the hands of someone trained to do them, you free up your time to focus on other critical aspects of running a business – like targeted marketing campaigns and expansion. Backend office tasks like keeping the books can be time-consuming and distracting. By outsourcing, you have time for more important things.
Not every company needs a full-time bookkeeper. Outsourcing allows you to use your team for other things and not pay someone around the clock to manage the books. It also eliminates some potential problems. Running a business is a full-time job, and you can’t do it if you are always looking over someone’s shoulder to make sure they are not abusing their power or making mistakes that will cost you. Hiring a professional bookkeeping service mitigates those risks.
Outsourcing gives you flexibility within your business, too. For example, you can work remotely, downsize, or grow as your business changes.
3. Lower Overhead Costs
Back office functions like bookkeeping don’t make you money – they only cost you. Of course, you could choose to pay a full-time bookkeeper a full-time salary but ask yourself if you are getting your money’s worth?
Outsourcing means you pay only for the time it takes to do your books. You don’t pay for vacations, sick time, family leave, or holidays. If a professional bookkeeper spends three hours balancing your accounts, you pay for only three hours a week, not eight hours a day plus taxes and benefits. That’s cost savings you can invest in other areas of your company like new equipment or marketing.
4. The Best Technology Has To Offer
The days of keeping the books on paper ledgers are long gone. Today, businesses rely on software to manage their accounts. For in-house bookkeeping, not only do you pay for staff, you pay for software, computer hardware, cloud storage, and data protection, too. That’s even more potential money that you could use elsewhere.
Once you purchase a software license, you have to pay for upgrades. If you use a subscription service, you pay a monthly fee to access your information. Those are costs that add up.
If you outsource, you pay one bill for everything. There is no accounting software to buy or computers to replace. Cybersecurity is a real issue these days, too. Outsourcing may offer you more security, so you can keep your books safe.
5. More People Working For You
Small businesses may hire one person to do the books. What happens when that person leaves or is sick? Outsourcing ensures there is always someone on the job working for you. A bookkeeping service has an entire staff there if you need them – and you pay one fee for all this expertise.
6. Checks And Balances
Putting one person in charge of your finances comes with serious risks, not just of fraud but of error, too. Outsourcing is both an efficient and effective alternative that comes with checks and balances.
By outsourcing, you put the best person on the job, too. A reputable service will have an expert in bank account management, another to examine credit card statements and question purchases if necessary, and a third to double-check the numbers. One person doing everything can miss something, no matter how good they are and how hard they work.
Outsourcing will ensure you stay in compliance with tax rules and laws. Agencies like R & D Legal Bookkeeping, LLC, train so they know all the tax changes and regulations. Without that expertise, you may find yourself with a violation that will cost you.
Outsourcing your bookkeeping needs makes good financial sense for most companies, so it’s something you should consider for yours.