It’s not uncommon for small business owners to resist outsourcing accounting functions. When you have built your business from scratch, it can be difficult to let go and allow others to take over.
Outsourced bookkeeping can also be misunderstood as being only for large firms with complicated accounting needs. This is not true. Small businesses can now outsource their accounting functions through technology to increase efficiency and drive business growth.
The bookkeeping function is more than just processing transactions and laying the foundation for financial reporting. It drives actions that have a direct impact on your business operations.
What are the Five Reasons to Outsource Bookkeeping?
Here are five reasons to let go of control and consider outsourcing your bookkeeping:
1. You will have more time to focus on core business functions
While bookkeeping is important, it does not add to your bottom line. Bookkeeping can be a time-consuming and tedious task for many business owners. Cash flow is vital to your business, so you will spend more time managing your books. Neglecting to manage your bookkeeping and accounting to scale your business can lead to serious problems, including actual monetary loss.
Outsourced bookkeeping allows you to focus on your business’ growth.
2. Get expert help and strategic leadership advice
It’s easy to say, “I’ll just do it myself,” but bookkeeping is a complex task that requires specialized skills. Your company will grow and your requirements will increase in complexity. Outsourcing allows you to access executive-level financial knowledge. Bookkeepers do much more than simply keep accurate records and log transactions. A bookkeeper with experience brings a wealth of knowledge and expertise. You can rely on them to provide valuable financial data that will help you grow your business and increase profits.
Through virtual bookkeeping, you grow your business and increase profits. concept of virtual bookkeeping or cloud accounting refers to a bookkeeper’s or accountant’s ability to work remotely with a client. Sharing an account with your bookkeeper is possible with accounting software.
3. Reduce your staffing and payroll costs
It can be costly to hire experienced professionals in-house. This may make it difficult for you to keep your business financially viable. You will need to pay a salary base, as well as bonuses, benefits, taxes, and overhead costs. While outsourcing bookkeeping might seem expensive at first glance, the math proves otherwise. Outsourcing means that you pay only for the work you do, no matter how often it is.
4. Get access to the best tools and systems in the industry
It may surprise you to see what you can find if you don’t have a full-time or in-house bookkeeper. The gig economy can be very competitive. This means that any good bookkeeper will take great pride in their work. They are always up-to-date with market changes and invest in developing their specialized skills.
You can be confident that your books and financial operations are in competent hands by choosing an outsourcing company carefully.
5. Scalability and adaptability
This is one of the greatest benefits of outsourcing your bookkeeping function. Outsourcing lets you expand or reduce your operations without affecting the employees directly employed by you. For example, you don’t have to fire an employee if you experience a sudden drop in revenue even if it’s temporary.
You can also scale up operations without having to go through a strict recruitment process. Small business owners who outsource their accounting and finance functions are committed to efficiency. Outsourcing bookkeeping allows you to scale up and down in your operations without any delays, which improves your overall efficiency.
Positioning your Business for Growth and Change
You have access to more skills and knowledge when you outsource your bookkeeping. Goode Bookkeeping & Consulting are the best in business. We will not only handle all your bookkeeping needs but we will also offer expert advice to help you position your business for success in the future.