If you’ve already been handling your own bookkeeping, you might not have considered outsourcing for bookkeeping. But if you use a third-party bookkeeper, you’ll benefit a lot more than doing the work yourself or hiring in-house. Hiring bookkeeping services means that you won’t stress about keeping financial records, saving business data, or planning your next budget. Here are a few great reasons why you should consider outsourcing for bookkeeping:
1. The Expertise
A third-party bookkeeper will spend their time handling financial records for a broad range of clients. As an entrepreneur, bookkeeping is just one of many responsibilities you have to worry about. For example, if you wanted to become a professional bookkeeper, you’ll learn skills that go beyond basic record-keeping. You can discover more about bookkeeping skills before you look to hiring bookkeeping services. You’ll see that there’s also a focus on budgeting, tax planning, creating financial reports, and much more. When you have an expert by your side, they’ll help you scale your business. Just as you would hire an expert for sales or marketing, you should hire an expert for your bookkeeping responsibilities.
2. It’s Value for Money
Many entrepreneurs worry about hiring bookkeeping services because they worry about the cost. But if you opt for outsourcing for bookkeeping, you’ll get value for your money. For example, a professional bookkeeper will finish preparing an account statement or balance sheet faster than you can. This will give you more free time to focus on the other aspects of your business. The more free time you have, the more time you have to build your company’s wealth. Often, entrepreneurs who neglect their bookkeeping services are of the “penny wise, pound foolish” mentality. This means that they save money in the short run but miss out on bigger goals in the long run. As such, one shouldn’t hesitate when it comes to hiring bookkeeping services. It’ll offer you more value in the long run and should be seen as an investment rather than a burden.
3. The Services Are Scalable
Another great reason for outsourcing bookkeeping is that the services are scalable. This means that the bookkeeping services will accommodate your business as it grows. For example, if you run a startup, you might want to focus on keeping financial records. This is the basic service that all bookkeeping services will offer their clients. As your business grows, you might want your bookkeeper to upgrade their services. For example, you can entrust them with the responsibility of saving business data. This means that they’ll be responsible for keeping financial records and other business information with them. They might keep hard copies or digital copies on hard drives or the cloud. They can provide a backup if you ever lose your important data. On the premium level, your bookkeeper can help you prepare budgets. If you have an upcoming project, they’ll advise you on how to spend your money. They’ll help you keep costs low without compromising on the value of your purchases.
4. Tax Savings
As your business grows, you can expect your local tax authority to want to take a major cut! But you also know that if you can reduce your tax obligations, you can use the money to scale your business. When it comes to hiring bookkeeping services, you want to inquire about their tax expertise. The best bookkeeping services will understand the tax code and how it affects your business. They can also help you legally minimize your tax obligations. They can also help your business prepare its tax returns. Some bookkeepers might even advise on which jurisdictions work best for your business from a tax planning perspective. They can research the best jurisdictions to establish your company to save on taxes. You can also expect your bookkeeping service to help you with payroll obligations.
5. Planning Ahead
A professional bookkeeper helps you plan for your business. For example, they can prepare financial reports each month or quarter for your company. These financial reports will document your company’s financial health. It’ll show if your profits are increasing, decreasing, or staying flat. These reports will help you decide what to do next with your business. Your bookkeeper will help you assess your business and how to keep it afloat. For example, if your company is facing losses, your bookkeeper can advise you on how to get back on track. If your company’s profits are soaring, the bookkeeper can advise you on how to invest them. For your business to succeed, you need to think about how to prepare for the future. When you outsource your bookkeeping services, you can find an expert to help your business plan ahead.
6. Fewer Errors
Can you imagine anything more stressful than making errors with your finances? You might accidentally calculate profits when you’re making major losses. In more serious cases, you might make mistakes with your tax obligations and incur major penalties! When you hire a third-party bookkeeper, you can expect fewer errors than if you handle bookkeeping on your own. Professional bookkeepers get trained to scrutinize financial records to ensure there are no errors. This alone is a great reason for hiring bookkeeping services. If you’ve made mistakes before with your bookkeeping, it’s time to hand over the reins to someone else. You can also hire a third-party bookkeeper to look over older financial records. If you need a revision for your accounts, you can give this responsibility to your bookkeeper.
7. Regular Service
What happens if you feel overwhelmed with your other business duties? You’ll likely end up neglecting your bookkeeping duties. What happens if your in-house bookkeeper gets sick or quits on short notice? Even a few days away from work can have dire consequences for your company’s finances. With a third-party bookkeeping service, you can ensure regular service for your business. You’ll likely get assigned to a specific bookkeeper as your point of contact. But if this bookkeeper is unavailable, there’ll always be a backup option to handle your duties. You won’t have to worry about bookkeeping “downtimes” when you use a third-party service.
8. Securing Financial Data
We’ve mentioned that third-party bookkeepers work well for keeping financial records and saving business data. These are confidential records that you want to protect at all costs. If you handle the security on your own, you might not be able to protect your data against serious threats. The average entrepreneur will likely not know which cloud services are the most secure. You also likely won’t know which is the right external hard drive to buy. Also, how do you protect against theft or online hackers? A third-party bookkeeping service knows how to secure your financial data. They’re responsible for securing the financial data for several clients. If they neglect these duties, their reputation and business are on the line. As such, there’s a greater incentive for them to find ways to protect your financial data from threats.
9. Preparing Spreadsheets
We all love looking at spreadsheets, but most of us hate preparing them. Spreadsheets are the best method for analyzing your company’s financial data. Your bookkeeping services will know how to prepare spreadsheets to help you look at your financial data. These spreadsheets can include balance sheets, profit and loss statements, expense reports, budgets, shareholder payments, and much more. Bookkeepers know how to prepare a spreadsheet that a layman can understand. These spreadsheets will be useful for making decisions for the future of your company. They’ll have expertise with a variety of spreadsheet applications. These will include Microsoft Excel, Google Sheets, Quickbooks, and others.
10. Regular Access and Consultation
If you have an in-house bookkeeper, you only have access to them during work hours. However, third-party bookkeepers are more eager to serve your company around the clock. You can expect to access your financial data through a cloud at any time of the day. You can also expect regular customer service through email, live chat, phone, and a help desk. You won’t have to think twice about reaching out to the bookkeeping service during non-business hours. You’ll also receive regular consultation from the bookkeeper on how to improve your business. At any moment, you can expect your bookkeeper to offer suggestions on improving revenue, decreasing expenses, and much more. When it comes to hiring bookkeeping services, you can schedule a consultation with the service. They’ll let you know how often they’ll make themselves available to serve your business.
That’s Why Outsourcing for Bookkeeping Is Great
Now you know why outsourcing for bookkeeping is great and why you should consider it for your business. Start by assessing the bookkeeping services that your company needs. Reach out to bookkeepers and ask them if they can provide these services at an affordable cost. You also want to check what other services they offer when you want to scale. It’s best to schedule a consultation call to assess the quality of the bookkeeping services. Make sure to share this guide with your fellow entrepreneurs. There’s more great content on running a business on our website!
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