9 Reasons Why You Should Outsource Bookkeeping
Business owners often wear multiple hats during the start and during the building of their business. They manage multiple functions to save money and to understand the ins and outs of the business. But at some point, it makes sense to hire and outsource certain functions.
One of these functions that should be outsourced is bookkeeping.
So why should a business owner hire or outsource their bookkeeping?
1. Focus on What They Do Best – New businesses require the full attention of their owner to work in the business and work on the business. By hiring someone to help them with their bookkeeping, business owners can focus on what they do best.
2. Lack of Expertise – Business owners usually understand the basics of bookkeeping and accounting. Professional bookkeepers understand all the intricacies of accounting. They know what numbers to expect and what are outliers. They can save you time and money. By having a professional handle your accounting, you are more likely to have the correct reporting, the correct filing, and identify possible problems.
3. Reduce Your Hours – How many business owners do you know that work all day and take home “the books” to do at night? Hiring a bookkeeper lets you save time (and money in the long run) and helps you keep a more balanced life.
4. Save Your Credit – If you’re juggling many tasks including bookkeeping, things sometimes slip through the cracks. Missing a bill here and there can dramatically increase your costs (late fees, penalties) as well as wreck your credit.
5. Expert Opinion – If you are constantly working in your business, it’s sometimes difficult to really see what’s going on. Hiring an expert to give you an outside opinion helps you stay on track with your financial goals. Knowing your real numbers by having an expert provide them will give you better insight and will help you make better business decisions. Your bookkeeper can put the financials in order and run reports showing how you are doing each month, where the funds are going, and how your efforts are paying off (or might need improving). He or she will give you that “big picture” through the numbers being crunched.
6. Avoid Any Conflict of Interest – Whether you have partners, or your business is accountable to other groups, it’s important to have a third party create and validate your financials. Accusations of misconduct could destroy your business and your relationships with other business professionals.
7. Get Your Money – Accounts receivable is a huge asset for businesses. But you don’t benefit from the asset if you don’t get paid. By keeping your accounting system in check, you’ll be able to invoice more effectively and quickly.
8. Get Your Cash Flow Right – Similar to protecting your credit, bookkeepers provide data and really understand the ins and outs of business accounting. By minimizing fees and penalties and maximizing discounts, bookkeepers can help you keep a strong cash flow.
9. You Hate It Anyway – Let’s be honest. Doing ‘the books’ is the last thing most business owners want to do. No one likes this tedious part of the business. However, bookkeepers love this and love providing this value to you!