One of the best ways to improve the bottom line of a business firm is to outsource the bookkeeping of the company. It is all the more crucial for a small business as it saves all the hassle of bookkeeping, cuts down the costs and provides more time to the business owners to focus on the growth of the business.
If you are running a small business and you are in double mind whether or not to outsource bookkeeping services for your firm, then please go through the five reasons below justifying the need to outsource your accounting operations:
Time is vital in all aspects of life, and it is no different for a business. Bookkeeping is a lot of hassle and takes away a significant amount of time on a daily basis, which can be used in other areas. Outsourcing your accounting operations saves you time that can be used in other operations of the business and getting new customers and clients.
It is way more cost-effective than having a full-time or part-time paid employee for your bookkeeping purposes. Outsourcing accounting means you pay only and only for accounting and nothing else. It reduces the productivity and payroll costs of the business. As per analysis, outsourced bookkeeping reduces the monthly costs by up to 40% compared to in-house bookkeeping.
Books reflect your business. It is imperative for any business – small and big to maintain well maintained and up-to-date books. Your company’s financial information will give you an understanding of when to hire new employees. It also gives the investors a clear idea of whether your company is worth investing their money in.
With the increased number of transactions that will come with the growth of your business, it will become a tiring job to maintain the accounts with in-house bookkeeping. Outsourcing accounting will help scale your business rapidly and benefit you in the long term.
To keep your accounts safe, secure and organised, you cannot rely on paper binders anymore these days. You need to use specialised accounting software, which comes at a cost. With outsourced bookkeeping services, you need not invest a penny in software, and the bookkeeping firm will accurately manage everything.
Another downside of in-house bookkeeping is that the employees in charge of managing the books may not have knowledge about the bookkeeping software and its features. So, you will need to train them on that, which will cost time and effort.
You will certainly not want your in-house accountant to know all the financial records of your business in and out, and it is something you cannot avoid if he/she is the one in charge of the bookkeeping. As per reports, over half of the businesses that are victims of theft are small businesses and having a single employee handling all the records is the common mistake in most of them.
Having your accounting outsourced will cut down your employees from the financial records of your company, and you will have the advantage of getting your books handled by trusted and established firms.
Having your books maintained in physical format is not recommended anymore in this digital age. The records are well-maintained in specialised software, which again comes at a cost. So, outsourcing your bookkeeping will ensure that you can access your books from anywhere at any time without paying for the software costs. It’s definitely a win-win situation for you.
When you outsource bookkeeping for small business, it reduces the headache during tax filing. Small business owners often get daunted while collecting all the information needed for tax filing. Having unorganised books adds to the inconvenience.
Having your accounts outsourced will save trouble for you at the time of filing your tax returns. All financial records will be available in a single place, and you will also get access to any other supporting documentation that may be needed during the filing process.
So, going through the above benefits of outsourcing the bookkeeping services might have changed your perspective on the whole scenario. Now, you just need to search for an established firm that will provide a solution to all your bookkeeping needs.
The Business Advisory Perth is one such firm providing bookkeeping services in Perth and surrounding areas whom one can consult and discuss the bookkeeping requirements and eliminate the hassle of maintaining in-house bookkeeping.
If you still have not outsourced your bookkeeping for your business, it is high time you do the same. It will not only reduce the stress of maintaining financial records but also cut down costs, increase business scalability and save you time for your other business needs.