Many small business owners begin with the goal of producing the best product or service. Bookkeeping is often thought of as an afterthought or nuisance. Many business owners launch their businesses with little thought regarding who will file the taxes or keep the financial books. They associate themselves with SaaS companies like Freshbooks or Xero.
While these programs seem easy to use, many small business owners end up struggling or failing as they might not have the accounting experience to do the work. It is estimated that average business owners who do their finances spend 10 hours a week on this task. This takes away time from the actual business which could generate more revenue for the company.
Small business owners must ask themselves some questions before performing their bookkeeping:
If the answer is ‘no’ or ‘not sure, it could be wise to use a certified bookkeeper from the outset of the business.
Usually, in-house bookkeepers and accountants are more expensive than outsourced bookkeepers. When an in-house bookkeeper is hired, it is necessary to know that they are responsible for benefit programs and payroll taxes. A normal in-house bookkeeper demands a salary of $40,000 per annum, which could be a difficult pill to swallow for a small business owner. Hiring an outsourced bookkeeper costs ¼ of that amount and comes with the obligations of paying payroll taxes and benefit programs.
Additionally, a qualified outsourced bookkeeper has to be an expert in their field. This could mean that the finances will always be managed by someone who knows how tax laws and regulations can affect the company.
As a small business owner, it is not possible to run every aspect of the business. Once a business is started, one needs to hand over the bookkeeping to a business financial advisor who has the best interests in mind. It is necessary to form a partnership with an expert who can guide a business in the right direction.
There are different advantages that a business owner can enjoy if they hire an outsourced bookkeeper, some of the advantages are:
On average, a business owner spends up to 5 hours a week updating records and making calculations. And this is during the average week and does not include year-end reports and tax season. Sometimes it can take 10 hours in these important finance events.
Doing bookkeeping takes away valuable time from business owners in growing their business. As a business owner, one needs to spend time expanding the business. An owner is considered the great thinker behind the business. So one needs to hire a bookkeeper to take care of other operational functions so that time is saved and the owner can concentrate on other important parts of the business.
An owner may be both the brains and brawn behind the business, especially if the business is starting. It is great to be behind the business early and sensitive. A business owner could feel uncomfortable letting other people take over their business. But business owners need to work and focus their attention on things that can enhance their business.
Many business owners get burned out as they do many things, but sometimes they force themselves to take care of everything. They do things that they are not interested in; this shows their dedication and passion for their work. This discipline is admirable, but it is not an intelligent use of talent. To make sure a businessman uses their talents to enhance their business, they need to hire an outsourced bookkeeper to take over extra work like finances.
While reviewing their talents, does a businessman ask themselves if they are a skilled accountant or have a background in finance? If the answers are ‘no’, then they need to think if they are the right person for the job. One could learn to account for or manage their finances even at this stage, but the time could be used better for doing other things.
Business owners need to know their true talents and where to apply them. In terms of expertise, an actual bookkeeper has the skills and talents to do professional bookkeeping work. This is why they need to be hired to do proper bookkeeping and help an owner use their talents in things they are best at.
Starting a business needs full attention and focus on every single aspect. But one needs to rethink their investment; if they are still doing everything, they won’t grow. The growth of a business needs one to focus on the core business needs. If owners are busy doing their furnaces, they cannot expand their business. This is why one requires bookkeeping services from an outsourced bookkeeper to focus on important things to expand their business.
As seen, bookkeeping services are necessary to ensure the business owner can focus on other core parts of the business. There are many outsourced bookkeeping services in Perth, but Business Advisory Service Perth is a top firm that provides outsourced bookkeepers to manage the financial tasks of companies. They have experienced bookkeepers who can help manage bookkeeping without making errors and help a business owner focus on other important aspects of a business.