No business can survive without bookkeeping. Bookkeeping is what collects money from customers, pays bills and employees, and gets new inventory. Unlike doing taxes at the end of the year, bookkeeping is something that needs to be done every day. The best option for business owners who don't have the time or knowledge to do it themselves is outsourced bookkeeping services. Here's why.
Many business owners are tempted to try to do bookkeeping on their own as a way to save money. They may also ask a manager to do the job. The truth is that while bookkeeping is valuable, owners and managers can't afford to take time away from actively managing and growing the business. Outsourced bookkeeping allows owners and managers to focus on what's most important while still having a trusted professional handle bookkeeping duties.
Reduce Payroll Costs
Hiring a bookkeeper means paying for both wages and a benefits package. It also means someone else in the business will need to spend time hiring, training, and managing a bookkeeper. Someone will also have to cover the bookkeeper's sick days and vacation time and transition periods between when one bookkeeper leaves and another one starts. Growing businesses often also need to hire someone before they have enough work to use that person's time fully.
When taking total payroll costs into account, outsourced bookkeeping services are often one of the most affordable and valuable bookkeeping options.
Get Access to Bookkeeping Software
Another thing to consider is having access to bookkeeping software. Businesses have to pay software licensing costs on top of their payroll expenses. Bookkeeping firms can often negotiate bulk rates on software that are far below what businesses pay on their own. Bookkeeping firms also have access to additional products not available to businesses or that businesses don't buy because they use them so rarely.
Bookkeeping software is usually included in outsourced bookkeeping packages. Business owners and managers can get cloud access to review their books in real-time.
Avoid Staffing and Training Gaps
When a business only has one bookkeeper, it can have a major problem when that bookkeeper moves on to a new job or even goes on vacation. It takes time to hire a new bookkeeper and bring them up to speed. While a business might put off some tasks, bookkeeping is too important to day-to-day operations to get ignored until a new bookkeeper is in place.
Outsourced bookkeeping services provide continuity by having a team in place that can cover for someone who has left temporarily or permanently.
There are a number of reasons for errors in bookkeeping. An inexperienced bookkeeper may make mistakes. Managers without bookkeeping experience may not know how to train or supervise a bookkeeper properly. A business may have never taken the time, or it may not have anyone with the knowledge to implement processes that reduce the risk of bookkeeping errors.
Outsourced bookkeeping services have a team of expert bookkeepers selected and supervised by bookkeepers with even more experience. They also have long-tested processes to complete bookkeeping tasks efficiently and accurately.
Get a Wider Range of Services
Outsourced bookkeeping firms offer a wider range of services than a single bookkeeper. It's similar to the difference between having a single general practitioner doctor or a hospital filled with all different types of specialists. With a generalist bookkeeper, the business is limited by that bookkeeper's skill set and the need to outsource any other tasks. With outsourced bookkeeping services, a business can add ongoing services or request a special report just by asking for additional services.
Have Fast Access to Financial Reports
When owners and managers need to make a fast decision, they may not always have the information that they need. Many business decisions require asking the bookkeeper to run a special report, but what happens when it's Friday and the part-time bookkeeper doesn't come back until Tuesday? In addition, some bookkeepers may not have the skills to run complex reports.
Outsourced bookkeeping services provide full-time support even when a business doesn't need full-time work. All it takes to get an additional report is making a phone call or sending an email.
Scale With Your Business
Businesses have different bookkeeping needs at different phasing. They may be growing, adding or removing product lines or operating seasonally. This can make it hard to determine the size of an internal bookkeeping staff properly, especially with a smaller team where even a little extra work creates a large burden.
Outsourced bookkeeping makes it easy to add and remove services as business needs change. It also maintains continuity as the business still has the same contact for all of its bookkeeping needs.
Be Ready for Tax Season
Many businesses have to scramble to get all of their records ready at tax time. Others who thought they had a bookkeeping system in place find out it wasn't following tax rules and their CPA will charge to redo everything.
Outsourced bookkeeping services have tax experts on staff who make sure all processes are tax-compliant so your books are ready to go when it's time to prepare your tax return.
Get Started with AccountingDepartment.com
AccountingDepartment.com offers a full range of outsourced bookkeeping, accounting, controller, and advisory services. To learn more about how we can help your business, contact us to schedule a free consultation.