Are you struggling with keeping the books for your growing company? It’s a common issue. Many business owners have tried to do it themselves, but have soon concluded that it’s best to outsource bookkeeping services. Let’s examine seven ways that outsourced bookkeeping services can help you and your business function better and grow faster.
You’ll Save Money
Are you handling your own bookkeeping because you want to save money? Take a moment to calculate how many aggregate hours each month you and your employees spend on bookkeeping. Now ask yourself if you spent those hours bringing in new business, how many new customers and sales would you likely have.
The odds are that if you conduct the above test, you’ll discover that by doing your own bookkeeping you’re losing money. Instead, paying the standard outsourced bookkeeping rates would mean that you would save money.
You Can Avoid Hiring Another Employee
Maybe you’re thinking about placing a full-time bookkeeper on the payroll. Before you do, think about whether that’s the best use of your capital. There are lots of expenses that come with a new employee. There are also lots of unknowns. For example, you don’t know whether the new hire will get along with the current staff.
Instead, outsource your bookkeeping. You’ll get all the advantages with none of the employer-employee headaches. You can even have an outsourced CFO.
You Won’t Overwork Your Staff
At some small businesses, one or more employees have to pull double duty. They do their regular job plus function as the company bookkeeper.
Why not let your employees focus on their areas of expertise—the areas for which you hired them? Leave the bookkeeping to people for whom that’s their area of expertise.
You Can Spend Time with Customers, Not with Bookkeeping
If you don’t attempt to personally handle your company’s bookkeeping, you’ll free up time each day that could be better spent attending to your customers’ needs. What’s the point of trying to save money by handling your bookkeeping if you’re losing money by either not devoting enough time to attracting new customers or not scheduling enough time with existing customers.
Your customers don’t care how well you manage to keep your books. They’re only interested in the level of service you provide them.
You Can Grow Without Outgrowing Your Bookkeeping Department
Your initial business might be small enough for a one-person bookkeeping department, but, in time, your enterprise could easily grow too large for one person to handle the books. The larger your business, the more complicated its bookkeeping procedures. You want a bookkeeping service that can scale up and stay in step with your business.
A good bookkeeping service is also available each business day. On the other hand, if you rely on a one-person bookkeeping department, sooner or later your bookkeeper is going to have to miss a few days of work and the entire department is shut down. What happens to your record-keeping on those days? That’s never a worry when you outsource your bookkeeping.
Your Books Will Be in Compliance with the Latest Codes and Software
What happens when your local, state, or federal tax laws change? How many days will your one-person bookkeeping staff need to get up to date? Will he have to take several days off to attend special training sessions? If so, how will your business manage during that time frame?
A professional bookkeeping service is always up to date on the latest laws and procedures affecting your business. You won’t have to worry about the entire service shutting down so the staff can attend seminars. Someone will always be available for you.
You’ll also have the use of the latest and most efficient software. Outsourced bookkeepers routinely update their software to keep pace with technology. In contrast, an in-house bookkeeper doesn’t have the time to keep up with all the new software that hits the market. And if he doesn’t have time to simply read about them, he obviously, doesn’t have the time to test each one to determine which is best for his employer.
New software can have features that may present data in novel ways that give you additional insight into how your company operates and how it can operate even more profitably. Why not take advantage of the technology that a full-service bookkeeping company offers?
Your Records Will Remain Confidential and Accurate
The owners of many growing businesses rely upon relatives or friends of the family with bookkeeping experience to keep their books. However, if those people ever fall out of favor with the family, they could, out of spite, leak the details of your business.
It’s similar when you use someone in your town who travels in the same social and business circles as you. There’s simply little chance that your financial information will remain confidential.
In contrast, when you use the services of an impartial outside agency, you can rely upon the agency’s professional ethics to shield your company records from prying eyes.
Banks as well as the Internal Revenue Service look more favorably upon tax records and financial statements prepared by third parties. The information is more likely to be accurate and reliable.
An experienced bookkeeping service will never make as many errors as a business owner is likely to make. The difference could be significant. After all, the fewer mistakes you make the less likely you are to trigger audits and investigations. That sounds like a pretty good reason to outsource your bookkeeping, doesn’t it?
No one likes to think of bookkeeping fraud, but it’s a reality that we all have to consider. It doesn’t take much imagination to see how an independently operating bookkeeping service with ironclad procedures is less likely to be involved in fraud than an in-house bookkeeper with little or no oversight. Why take chances? Safety is just one more of the many benefits of outsourcing your bookkeeping.
Choose Experienced Virtual Accounting Services
From the start of your company, you’ve been determined to let nothing hold you back. But make sure that you’re not holding back yourself by doing your bookkeeping in house. Contact Sterling Tax & Accounting today to learn how we can help you take your business to the next level with our outsourced bookkeeping services.