Many businesses are unable to afford to hire an accounting team. Often, business owners try to handle their books. However, this can lead to errors and other issues.Even if an organization has an accountant on staff, it's not their...
Many businesses are unable to afford to hire an accounting team. Often, business owners try to handle their books. However, this can lead to errors and other issues.
Even if an organization has an accountant on staff, it's not their responsibility to prepare cash flow reports or income statements. A bookkeeper does not perform all of the daily tasks. Outsourced bookkeeping is a great option.
When a company needs a bookkeeper who can do everything, outsourcing their bookkeeping is a great solution. This can go so far as to keep a business alive long-term. We'll look at how outsourced bookkeeping can save a struggling business.
Accuracy
You would never hire a doctor who did not attend medical school. You would never hire a lawyer if they had not passed the bar. Why would you hire a bookkeeper who has not been adequately trained then? Your books will likely contain errors if you hire a poorly trained bookkeeper. This includes business owners who assume the role of bookkeeping.
You might not be qualified if you are a business owner and do your own books. Recognizing this sooner rather than later will keep your company much healthier.
From the very beginning, accurate bookkeeping should be your top priority. Outsourced bookkeeping is a great way to get someone trained specifically in this area. You will have accurate books and a clear financial picture of your business.
Cost-Effectiveness
Outsourced bookkeepers do not work for the company. Outsourced bookkeepers will save you money on employment costs. You will save money on salaries, wages, and vacation time. Also, you won't have to pay taxes, health insurance, or bonuses.
You'll also save on office costs if you hire them to work remotely. Outsourced bookkeepers will not be your direct employees. Outsourcing bookkeeping is cheaper than hiring a full-time employee in-house and allows for more growth without expanding a department.
Security Levels Improved
Outsourced professional bookkeepers understand the importance of security regarding your company's proprietary data, such as financial records. They use innovative technology to keep all your company's data safe and private.
You are vulnerable to theft if your current bookkeeping system relies on handwritten records stored in an office or manual processes. You could also lose essential documents in a fire or flood. These events would destroy the physical records. If you use an outsourced bookkeeping service, and primarily if it uses a paperless workflow, none of these situations will be a concern.
Sustainability and Growth
Time is of the essence when you own a business. You can spend more time on your business by outsourcing bookkeeping services.
Outsourced bookkeepers are responsible for handling your entire bookkeeping from beginning to end. You can spend more time on your day-to-day business, customer relations, product development, and management. Outsourcing allows entrepreneurs and CEOs to spend their time more productively.
Additional Cash for Other Areas
Businesses that outsource their bookkeeping services may have more money to invest elsewhere in the company. Outsourced bookkeeping services have lower overhead costs.
You will also only pay for the services and work your business requires. Hiring an employee to work 40 hours per week is more cost-effective, even if the bookkeeping workload may not be enough to fill this time. This adds to a more positive bottom line on the financial statements.
Get the Extra Mile with a Full-Charge Service Provider
Outsourcing bookkeeping services is an excellent way to free up funds and time for your business. But have you considered a complete accounting department takeover by a company like Basis 365?
Basis 365 offers more than simple bookkeeping. We can handle the entire accounting department for your small or medium business. This will ensure accuracy, cost savings, and much more. Contact the Basis 365 team today to learn what we can offer your business.