One part of running a business is making sure that your books are in order. It can be a lot of work, though.
Here are several reasons why you should outsource your bookkeeping service:
1) You Can Save on Operating Costs
When you hire a bookkeeper to work at your business, whether it’s a full-time one or a part-time one, that’s going to affect your budget. That’s a yearly salary of anywhere from $35,000 to $55,000. You can save some money by outsourcing the bookkeeping, since you only pay them for the work that they do.
Also, when you bring someone aboard in-house, you need to pay other expenses, especially if they are full-time. That means that you’re going to have to pay to train them and pay for benefits like health insurance. This also doesn’t even take into account how much it can cost to recruit them. Outsourcing can save you so much in both the short and long term.
When you outsource your bookkeeping, though, you simply pay one flat monthly rate instead of those other expenses.
2) You Will Have a Lot Less Paperwork
Bookkeepers typically handle a variety of paperwork and financial documents to ensure accurate record-keeping and compliance. Some of the paperwork they commonly manage includes:
- Invoices: Recording, organizing, and processing invoices from vendors and suppliers.
- Receipts: Collecting and categorizing receipts for expenses incurred by the business.
- Bank Statements: Reconciling bank statements with the company’s financial records to ensure accuracy.
- Payroll Records: Calculating and maintaining records of employee wages, taxes, and benefits.
- Purchase Orders: Tracking purchase orders for inventory and supplies.
- Sales Records: Recording sales transactions, including invoices and receipts from customers.
- Expense Reports: Compiling and analyzing expense reports submitted by employees for reimbursement.
- Tax Documents: Gathering and organizing tax-related documents for filing tax returns.
- Financial Reports: Generating financial reports such as income statements, balance sheets, and cash flow statements.
- Contracts and Agreements: Maintaining copies of contracts, leases, and agreements relevant to the business’s finances.
- Depreciation Schedules: Tracking the depreciation of assets over time.
- Loan Documents: Managing documentation related to loans, including loan agreements and repayment schedules.
- Insurance Policies: Keeping records of insurance policies for property, liability, and other types of coverage.
- Business Licenses and Permits: Ensuring compliance with regulatory requirements by maintaining records of licenses and permits.
- Correspondence: Keeping track of relevant emails, letters, and other communications related to financial matters.
These are just some examples, and the specific paperwork handled by bookkeepers may vary depending on the nature and size of the business, as well as industry-specific requirements. However, you can eliminate doing any of this paperwork yourself by outsourcing your bookkeeper.
3) All Your Bookkeeping Can Be Accessed on the Cloud
Instead of having those reams of paper sitting around an office, the relevant data can be found on the cloud. This way, the people that you are outsourcing it to can have a clutter-free office too and focus on providing you with the best service possible. You’ll be able to go through it quickly on a screen instead of having to flip through pages.
Also, you’ll have access to the cloud wherever you are. You can check what’s going on whether you’re on vacation or relaxing at home.
4) You Can Keep Errors to a Minimum
People are human. Mistakes will be made. This usually happens if you hire a new bookkeeper to work in your office, and they are learning your system. You can lower the risk of this happening if you outsource your bookkeeping. That’s because the people there will be experienced, and they will also use automated software, which reduces the chances of errors. You’ll still have to double-check things, but you’ll be able to be a lot more confident about the results.
5) You Can Get More Detailed Results
When you outsource a bookkeeping service, they usually provide a lot of extras. This includes being able to have them zero in some financial insights that an in-house one might need a lot more time to do. That way, you can see where you’re excelling financially as a company and where you need to shore up some other areas.
6) You Will Be Well Prepared Come Tax Season
Companies and people are the same. They hate it when it’s time to file taxes. Your in-house bookkeeper might not be familiar with all the tax rules. When you outsource your bookkeeping, you’re going to be using a company that will have tax experts on hand to ensure that you follow every regulation. That way, you won’t be dinged come tax time.
7) You Will Be Able to Customize Your Services
When you have a person come to your office, you’re going to get a set number of services for the salary that you’re providing. You can’t have them do only one thing and pay them less for that. When you’re using a bookkeeping service, then you can customize what services they provide. As a result, you can save money again, which is good for your business’s bottom line.
As you can see, there are quite a few good reasons why you should take advantage of this service. The internet and the ability to reach people from hundreds, if not thousands, of miles away in real time is more than enough to ensure that everything is done correctly. You can take the money and time that you save having them do this and invest it in other parts of your business to help it grow. That will make your investment worth it.
