There is nothing small about running a small business. There is a lot to do and manage both in the day-to-day handling, as well as the background tasks, that keep everything organised and streamlined. Making time for it all can be daunting, leading to burnout and a lot of tasks getting left off the to-do list. One of the tasks constantly pushed aside is bookkeeping. While it might seem unimportant as part of a daily system, bookkeeping is an essential cog of everyday business.
What is Bookkeeping and why is it Important?
You most likely hire an accountant to look after your business taxes and provide an overview of your performance. For an accountant to achieve this you need to provide your financial records, income and expenses. If you are only checking in with an accountant once or twice a year, handing over the required information can be challenging with purchase receipts and invoices lost, forgotten or inaccurate.
Bookkeeping is a much more frequent practice of gathering and preparing everything you need to keep your accounts in order. It’s all the money administration that is needed to know where you stand financially at any point in time.
When you should hire a Bookkeeper
Managing your books is all about making your business run smoothly. If your finances are inaccurate, you don’t have time to keep your financial records in order yourself or you are having difficulties meeting your financial obligations at tax time, you’ll need to hire a professional bookkeeper to get your business up to speed
The other time to hire a bookkeeper is when your business starts to scale. In most cases, your booking will become more complex as you bring in staff and more equipment. While you will be earning more revenue, you’ll also have more complex expenses.
You can outsource this task to focus your attention on growing your business.
Why you should Outsource your Bookkeeping
While an in-house bookkeeper is suitable for a larger business, smaller businesses might not have the capacity to hire their own bookkeeping professional if there is not enough work to fill part-time hours or not enough resources to employ a new staff member who requires sick leave, annual leave and their own equipment on top of regular wages. Outsourcing means your fully trained professional works from their own office and has access to the latest and most efficient bookkeeping software.
In many cases, it makes sense to outsource your bookkeeping and get all that administrative financial work off your plate through an established bookkeeping firm.
8 Benefits of Outsourcing your Bookkeeping
There are a lot of quality benefits and reasons why you should outsource your bookkeeping.
Just how much you gain will depend on your unique business but in general you can expect to:
- Save on staff and payroll costs
- Access a pool of experts
- Have more time to focus on your business
- Have your taxes prepared accurately
- Take advantage of the latest software and technology
- Scale your books with your business
- Reduce the likelihood of errors
- Guaranteed confidentiality
There is another option to doing your books yourself or neglecting your bookkeeping obligation. Outsourcing your bookkeeping gives you access to experts on an as-needed basis to pull your finances into line and give you more control over your business spending, budget and asset allocation. Contact a fully certified bookkeeper for a tailor-made solution.