What Are the Benefits of Outsourcing Bookkeeping?
Written by Team Bookkeypr | Published: 25 May 2023
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A stable financial structure is key to a successful business. But many business owners make huge mistakes when it comes to accounting. Some businesses hire in-house accountants to keep track of their finances, and others prefer to outsource bookkeeping to professional accountants.
In-house accounting is laborious, time-consuming, prone to errors, and more importantly, costly. Moreover, you need to be involved every step of the way. With outsourced bookkeeping, managing operations could be better for productivity and cost efficiency. You could use more time for business growth while professional bookkeepers do the books.
Outsourcing bookkeeping is an excellent investment for businesses in the long run. Let’s understand why.
When and Why?
When and why should one outsource bookkeeping? As an entrepreneur, you don’t always need a third party to manage your account. But you should opt for outsourcing if you’re facing the following situations.
- You are struggling to keep your general accounts.
- You have multiple monthly accounting transactions and purchases that are difficult to manage.
- You cannot predict an accurate picture of your financials (profits and losses).
- You don’t see the need for cash flow management.
- You don’t have or can’t afford a professional accountant on the team to manage business accounts.
- You want to increase business profit but don’t know where to cut costs and get more profit.
- You need proper guidance for tax saving.
Benefits of Outsourcing Bookkeeping
Outsourcing bookkeeping offers the following benefits-
- Reduces Time and Effort
Hiring a full-time/part-time accountant or bookkeeper entails you investing a lot of time in recruiting, training, upskilling, and retaining talent. However, by outsourcing bookkeeping you eliminate this mammoth of an effort- effectively saving you much-needed time & effort and reducing overall stress. - Save Business Operation Costs
Hiring a full-time/part-time accountant or bookkeeper can cost anywhere between $1,500 to $5,000 per month. However, by outsourcing bookkeeping, you will only pay a fraction of this cost, saving your business roughly 30% of the relative hiring costs. - Customized Pricing Packages
With pricing plans tailored to suit your needs, outsourced bookkeeping allows you to keep track of the company’s financial health and helps you save on costs and time. - User-friendly Client Portal
Scan, upload, and sign documents on the fly and access an organized data room managed by us, easily from the web, and iOS/Android app. - Minimize Errors
Errors in accounts can potentially affect your business growth. Even if you have experienced bookkeepers on the team, they are still vulnerable to making minor mistakes. At a professional accounting firm, your bookkeeping is handled by a team of professional accountants who have expertise in multifaceted bookkeeping activities. This would ensure the accuracy of the data. Moreover, professional accounting firms ensure that their team upskills at regular intervals and is always guided by industry experts. - Perform Overdue Bookkeeping
Need to manage months or years of pending bookkeeping? Regardless of your business size, we eliminate your tax season stress and help you get back on track quickly. Our specialists can help close your books, clear the backlog, and file taxes on time. - Complete Financial Reporting
Outsourcing bookkeeping is beneficial for getting better insight into financial data. You can easily review finance, cash flow, balance sheets, incurred losses, and profit monthly. Professional bookkeepers organize your business’s financial data in an easy-to-understand manner. You get the whole picture of financial data with a single report and/or a call to make better decisions. Moreover, businesses can easily share their financial reports with employees, stakeholders, and financial advisors to make pertinent business decisions. - Taxation Becomes Easy
Tax season is always challenging because businesses are never prepared with their financial records nor are they well-versed with proper tax laws. But if you outsource your bookkeeping, they prepare your records well before tax season, avoiding unnecessary last-minute stress. Moreover, outsourcing firms also guide you on how not to overpay taxes. Expert bookkeepers also help to file all your tax returns accurately and conveniently. - Personal Financial Advisors
Outsourced bookkeepers are like personal financial advisors. They guide you to make your bookkeeping and accounting effective. Professional bookkeepers work with multiple companies, so they have experience with accounting software and taxation to provide you with financial advice at the right time. - Scale Accounting Effortlessly
Scaling your business operations is a challenging task in itself. Hiring additional financial resources to handle increased sales should be the last of your worries. Outsourced bookkeeping significantly helps scale up accounting without any time lag.
For instance, when your accounting needs increase with growing sales you may need to hire new team member/s which adds to your already exhaustive tasks, while when outsourced this is seamlessly handled by the outsourced company. Moreover, outsourcing bookkeepers only charge for the services they offer. This means you can easily scale up or down the accounting services you need without any hassles.
What to Consider Before Outsourcing?
- If you’ve decided to outsource bookkeeping after knowing the benefits, choose an outsourcing firm that fits your business objectives and financial goals wisely. You must focus on some factors while choosing an outsourced bookkeeping company.
- Find out the accounting services you need. Do you want to prepare monthly financial reports, payrolls, or balance sheets? Whatever your goal is, you need to be clear about the services you need.
- Remember, bookkeepers have their payment plans. Therefore, you must check their plans and terms & conditions to know if their services fit your budget.
- Make sure the company you choose has qualified accountants. Moreover, you can ask what type of software they use and whether they can guide how to bring financial stability to businesses.
- Data security is the most important thing businesses check before outsourcing their accounts. So, ensure the outsourcing services you choose must have complete data security and keep your data confidential.
In a Nutshell
Managing business accounts is not easy as it seems to be. As a business person, you must track profit, loss, and taxes to find growth opportunities. Without accounting knowledge, you cannot get clear data and waste much time.
But if you hire professional outsourcing bookkeeping services, you will save time and manage finance operation costs effortlessly. This will also help you maintain the consistency and accuracy of your financial records.
Bookkeeper has a team of accountants who can maintain your books as and when you scale without disruption. We provide customized financial solutions according to the business. We can assist you if you’re looking for an expert to outsource bookkeeping. Book a free consultation with one of our experts here, or simply email us at sales@bookkeypr.com. We’d be happy to help.
