Is an Outsourced Bookkeeper needed for your business?

Start-ups and small businesses face many challenges. One of them is financial management.

Unless you have a team member with a solid bookkeeping or accounting background, you'll likely be delegating bookkeeping services to someone who may not be as experienced or trying to do it yourself.

Two significant risks come with this approach: Taking on the role of a bookkeeper can take time away from core tasks such as customer building and fulfilling orders. This could also be dangerous for overall solvency, regardless of how well-intentioned and willing someone is to learn complicated bookkeeping processes quickly.

You may not find the right solution in a "just until someone finds you" bookkeeper. For example, they may need to meet deadlines or follow the correct processes to complete tasks for your business. In addition, a business owner may be misinformed if they cannot fully picture the current and future finances.

What can we do? Companies are typically encouraged to hire people with these skills quickly. However, a new trend is to outsource your bookkeeping services like you would other vendors and contractors.

This approach has its advantages.

There is less overhead. This person will not require an office or be added to the payroll as an employee. Outsourced bookkeepers often charge per hour or by task. Both are acceptable options if your situation is not urgent.

Companies can't do it all alone, so they need to buy QuickBooks and more advanced bookkeeping software. There is often a learning curve if you need to learn how to use a program. However, these tools will be familiar to professionals who are experts in bookkeeping.

Having someone outside of the company monitor finances is a good idea. They will not have personal or loyal relationships with anyone within the company. They won't show favoritism.

Knowledge of business requirements and best practices. Although they may not be experts in your industry, they can tell you about ways to save money and what can and cannot be deducted from your business expenses.

Additional assistance is available when tax season approaches. While daily accounting is essential, extra help is valuable when gathering information to file taxes.

You have more time to do other essential tasks. 

You can have more time to do other jobs, particularly those more aligned with your skills. For example, a virtual bookkeeper must always be available for financial queries. However, they should still be accessible during the day so that you and your team can concentrate on your job.

Handles miscellaneous tasks. 

• Do clients owe you money?

• Does another company owe you money?

• Do you need investors now or later?

These are essential topics to think about. Outside bookkeepers can assist with tasks such as reconciling invoices and statements. This will save you time and ensure that all balances are current.

Better books.

A well-organized book will reflect positively on your company and you, regardless of whether you are checking cash flow or preparing financial information for potential investors.

Virtual bookkeeping can help keep financial data up-to-date and accurate. It also allows company executives to concentrate on more relevant tasks. 

To learn more about how outsourced accounting and bookkeeping services can benefit your business, reach out to Basis 365 today.