Why you should outsource YOUR bookkeeping?
We work with a lot of customers during critical turning points in their scaling phase. These are businesses that have hit the elusive million-dollar mark in annual revenue and suddenly feel the burden of managing their bookkeeping is finally catching up to them.
It doesn't take long for a business owner to learn that accurate and up-to-date financial records play an essential role in the success of a business. At the same time, the day-to-day tasks required to maintain their books often fall to the bottom of any business owner's to-do list. After all, they didn't go to school to be bookkeepers, and any time spent on maintaining the books can translate into an expensive hourly rate.
Hiring a bookkeeper to handle your in-house accounting tasks is one solution to the problem, but it's not always the best. However, we have five good reasons to consider outsourcing your bookkeeping services.
Scalability
Growing businesses often start with more minor needs but rapidly grow to require a full suite of bookkeeping services. Hiring an outsourced bookkeeping service with controller oversight and a full-service offering enables the service to scale to needs without hiring or training additional staff.
Privacy
There is nothing more guarded than a company's financial information. These are definitely something a business owner wants to keep safe and secure. Finding someone you can trust to do the job well, plus maintain confidentiality, is not a simple task. Outsourcing your bookkeeping to a virtual firm with solid customer references can provide an owner peace of mind while removing the ability of a community member to know the ins and outs of their financial business.
Resources
When business owners try to save money by doing their bookkeeping or delegating it to another key employee, they expend valuable time and energy which could be used to grow the business. When bookkeeping services are outsourced, they free themselves to spend their time doing what they do best. CFOs, office managers, and non-accounting personnel simply shouldn't be spending their time on the books.
Tax Ready Financials
Using an outsourced bookkeeper to prepare financial records makes tax accountants and the IRS happy. There is no concern about whether the books are accurate or questioning the integrity of your financial data. If you need to provide financial statements for an audit or satisfy investors, outsourced bookkeeping services can help ensure no doubt about the data.
Training
Most business owners cannot manage or train a staff of bookkeepers - primarily because the bookkeeper knows more than they do. But the benefit of having a bookkeeper is their knowledge of your accounting software, whether it be QuickBooks or Xero.
Whether your business needs current financial reports to present to a banker or needs to keep tabs on cash flow, staying up-to-date on accounting tasks is essential, which is why outsourcing your bookkeeping is critical to your business's overall success.
