Whether you’re a farmer, are into manufacturing, sheet metal fabrication or commercial cleaning or any other business enterprise, once your business starts to gain momentum your company must find an effective way to manage its books. For some businesses, this means an in-house bookkeeper or bookkeeping department, depending if the company size and turnover warrants it. For others, usually new businesses or small to medium sized businesses, it means finding a qualified & reliable local bookkeeping service who it can trust to outsource its financial record management and accounting obligations to.
Are you considering outsourcing your bookkeeping? It’s good to have a solid understanding of what outsourcing means first and the following information outlines some of the things to consider before hiring an outside company to manage your small business’s day to day and year end accounting obligations…
For companies who outsource their bookkeeping, the decision usually means saving time and money, getting access to high-quality bookkeeping in many ways, minimizing the risks typically involved with relying on in-house staff or on “muddling through” yourself when you have the company's core business to take care of as a priority. Does outsourcing your bookkeeping make sense for you? Here’s a closer look at the specific advantages it may offer:
It’s surely no surprise that outsourcing work to a specialized bookkeeping services provider, versus hiring a full-time employee, saves you money. When you outsource, not only can you match the work hours/hours/number of projects to your needs, but also you can avoid typical employee expenses like benefits, insurance, payroll taxes, maternity leave, unemployment taxes, paid time-off, Friday Timbits etc. You don’t have to provide workspace, office furniture, computers or software, either. Even with the initial costs involved in contracting out the work of keeping your books in order, the overall financial savings are still significant.
Are you currently doing the bookkeeping yourself? If you are, consider that this time would probably be better spent concentrating on your core business, increasing sales, getting jobs out the door, overseeing job quality, keeping your customers happy… Did you start a business because you are passionate about administration and paperwork? No??
Worse still, are you relying on a relative or friend to help you out? What happens if they are busy at work or have other family commitments? Is your accurate bookkeeping their main priority? No, probably not, as much as it might seem like a good idea (and usually because it means you don’t have to do it), sooner or later in our experience this type of arrangement leads to additional headaches and arguments when things get behind or missed…
Bookkeeping is important, and it must be accurate and on time, that’s where professional bookkeeping services make sense. Thinking of hiring someone to cover your bookkeeping? (As well as filing, helping you with quotes, keeping the office tidy, appointments organized, the fridge stocked with milk, the telephone answered…?) trust us, the bookkeeping will come last, and will generally end up being rushed.
Think also then of the weekly hours it will take to manage in-house bookkeeping staff—taking away from the time you can spend on business- and relationship-building activities more directly aligned with your company’s mission. (Or fishing, a couple of days at the cabin is legitimate, we all need some down-time too – even if that’s in Mexico!) Outsourcing alleviates this need and gains you time. You don’t have to deal with the typical headaches involved with recruiting, hiring, retaining and overseeing staff either because that’s what the service provider will handle, and at the same time the better ones provide continuity by always having someone to cover your needs, no matter what. That means you’re free to focus your time on what matters most to your business and to you!
By eliminating the distractions of a general office from their jobs, places that provide bookkeeping services generally provide clients with more focused work. It’s hard for a bookkeeper to do their jobs around the hustle and bustle of a business—removing them from the site by outsourcing not only helps you focus on your business, it helps them focus on your business as well.
Third-party bookkeeping service providers specialize in the work they do, so they’re the perfect resource for getting work done. What’s more, bookkeeping service providers should constantly hone their skills to keep up with regulations and the competition, ever increasing the quality of their work. This means when you go to an established and experienced bookkeeping service, you can trust that your bookkeeping will be handled well. The better ones will even be able to give you balanced facts and information so you can plan ahead from a balanced viewpoint – they see a lot of what’s going on, what “hot topics” other small businesses are being audited for, and they can help your business to become and stay compliant with your accounting procedures.
►Minimize Security risks
Your business financial information is, by nature, a potentially sensitive subject. When you send all your financial information and records to an outside provider, you liberate insider knowledge, potentially one of the most valuable or dangerous parts of your company. Would you want your accounts to be public knowledge? No? Then consider keeping your bookkeepers local, as they will be certain to be looking after their reputation by looking after yours too. It’s also a great idea to contact a few bookkeeping services whilst you are making up your mind on contracting out and go with the firm you that best connects with you and your bookkeeping needs. This is almost as important as asking for and checking up on references. This is an important step in your companies’ evolution, the fit should be good, and you must feel you can trust them for the relationship with your new bookkeepers to work.
Have you decided to hire a local experienced and reputable bookkeeping firm?
Great because that is what we are and what we do here at Advantage Bookkeeping & Business Consulting.
Book your complimentary no obligation meeting today.