Running your small business’ day-to-day activities can be tedious and overwhelming. This makes handling your company’s daily financial records, bank reconciliation, and payroll, among other bookkeeping tasks, the last thing you want to do at the end of a busy day. You may also lack the expertise to accurately keep track of your business’s financial records, especially when your company is growing rapidly. And while maintaining an in-house bookkeeper may seem like a viable solution, it is stressful and expensive. Why not seek third-party bookkeeping services? In this article, we highlight ten reasons to outsource bookkeeping for your small business.
Maintaining an in-house bookkeeping team can be expensive. Not only do you have to spend money recruiting and training the new hires. You also have to provide employee benefits such as paid vacations, insurance, sick leaves, and salary and wages. Keeping an in-house team also means paying the employees during idle seasons.
By outsourcing, you only pay for the work completed. This enables you to free funds, which you spend on growth. Partner with Geekbooks today to simplify your finances while keeping payroll and operational costs at a minimum.
Better quality work
With so many day-to-day activities to handle, you may lack the time or patience to master how to maintain accurate financial records. This could result in making mistakes that could hurt your business down the road. By outsourcing your company’s bookkeeping, you partner with individuals who are familiar with proper reporting and records management, GAAP standards, and payroll requirements, to mention a few, guaranteeing quality work at an affordable price. Since the outsourced team handles books for multiple clients, they are often up-to-date with federal and state regulatory standards that could impact your organization.
Recording, analyzing, and reconciling payments, among other financial records, takes much of your time away from your business’s core function. By outsourcing bookkeeping and accounting to trustworthy and experienced bookkeepers, you can devote the right amount of time to other activities that require immediate attention. You will have more time to evaluate processes, streamline operations, and improve customer service.
Access to the latest technology
Gone are the days when companies operated on pen and paper. Today, businesses rely on accounting and automation software to streamline operations and improve data accuracy. Unfortunately, you may lack sufficient funds to invest in the latest technology, so you should consider outsourcing.
Outsourced bookkeeping service providers have a robust, centralized bookkeeping system that helps maintain efficient processes. This means you can leverage the systems to import transactions automatically. You can also reconcile and categorize books without relying on receipts and supply statements. Since the system is also cloud-based, you can view and access your financial records from any device anytime.
Outsourcing bookkeeping and accounting provide access to individuals with different experience levels who can offer insights into your company’s finances. For instance, an outsourced bookkeeper can identify poor spending habits and tax benefit opportunities. They can provide insights on how to cut spending, which is significant in improving cash flow. By listening to your outsourced bookkeepers, you can make and implement better and more informed decisions to help your business thrive and achieve your goals.
Hiring an in-house bookkeeping team requires you to vet the candidate’s expertise and experience carefully. You will also need to train them and allow adequate time for an in-house bookkeeper to adjust to your company’s requirements. During the transition period, the in-house team will likely make errors that can harm your business’s financial health, so you should consider outsourcing. Outsourced company bookkeepers undergo rigorous training and tests before partnering with clients. Multiple bookkeepers also review financials before delivering them to you, reducing the margin of error while maximizing accuracy.
Privacy and security
Maintaining an in-house bookkeeper requires you to place a significant amount of trust in your employee while maintaining a professional relationship. However, it can be difficult to trust your in-house bookkeeper in the face of managerial or personal disagreements. Outsourcing bookkeeping means you do not have to worry about security breaches due to employee disagreements. Outsourced bookkeepers put in place rigorous safeguards to ensure redundant data backup, confidentiality, and access control, minimizing fraud.
Scale bookkeeping with your business
You will likely need additional bookkeeping as your business expands. If your in-house bookkeeping team cannot keep up with the extra workload, you will likely hire and train another person to meet your business needs. This will not only waste time.
Recruiting and training another employee increases payroll expenses and reduces your business’s profit margins. During the slow seasons, your in-house bookkeeper will remain on the payroll and receive the same benefits, despite the reduced work. Your business tax obligations also stay the same regardless of consolidated revenue.
By partnering with an outsourced bookkeeper, you can scale the size of your operations up and down without suffering profit losses. This is especially beneficial if you run a seasonal business because you can adapt the bookkeeping service to your business needs.
With recent technological advancements, small businesses no longer need to be tethered to any specific location. Companies are now embracing a “digital nomad” lifestyle that lets them operate remotely. By outsourcing bookkeeping and accounting, you have more flexibility on where you can run your business operations. With a virtual bookkeeper, your business does not have to be in a fixed location!
Stress-free tax season
Accounting and taxation are some of the most complicated business processes. Tax codes also change frequently, so it is best to leave all accounting and tax processes to a professional. Outsourced bookkeeping service providers are not only familiar with your business tax requirements.
They also keep up with taxation changes, so they can help you file your tax appropriately, preventing tax audits. An outsourced bookkeeper can also help you avoid missing tax deadlines, protecting you from legal implications and penalties.
Outsourcing bookkeeping for your small business can help you save time and money, access the latest technology, maximize accuracy, enhance security and privacy, and scale your books with your business. Partner with an experienced, reliable, and reputable bookkeeping service provider today to enjoy the above benefits.