When should you outsource your business bookkeeping?

 

 

1 – Doing the books is taking you away from your business and using up a significant portion of your time.

 

Business owners tend to make the mistake of trying to wear too many hats. Running a business definitely requires excellent multi-tasking skills, but if you are spending almost as much time on the record keeping as you’re spending with your clients, then it’s definitely time to make a change.

 

2 – You’re not entering all of your business transactions or keeping up-to-date records.

 

This happens quite frequently. You have good intentions and plan to update your books, but you’re so busy juggling all of the other tasks involved in running a business that you just never seem to get around to it. Unfortunately, this can end up costing you dearly in the long run. Without good records, it’s impossible to obtain accurate financial reports. This may seriously limit your options for loans or funding. Once your books are a mess, it can take a significant amount of time and money to correct. Miscalculating profits or costs could prove to be disastrous to your business.

 

3 – You are not sure if your numbers or records are correct.

 

Inaccurate numbers lead to inaccurate reports. Not knowing the true financial picture of your business could cause you to make uninformed business decisions. Without a proper paper trail, it may be impossible to track down issues or clearly find the cause of a problem. Under payment of taxes could result in late fees or penalties and increase your chance of being audited. Miscategorizing assets or expenses could prevent you from maximizing your tax deductions.

 

4 – Separation of duties has not been implemented.

 

If the person reconciling the bank statements is the same person that is writing your checks, you are putting your business at risk of fraud by not having internal controls in place. By providing separation of duties and implementing proper internal controls, you mitigate fraud risk and ensure that the flow of information into your financial management system is valid.

 

5 – You are overpaying for your current bookkeeping.

 

If you are currently paying a full-time in-house employee or a CPA to do your bookkeeping, you are probably over paying. Accountants can handle your bookkeeping, but they will do so at hourly accountant rates. An in-house employee will run you about $40,000 per year plus benefits and overhead expenses. These costs are generally much higher than what most small businesses are able to budget for.

 

 

 

 

What are the benefits of outsourcing your business bookkeeping to an expert?

 

 

Cost Effective

 

When you hire an expert bookkeeper to handle your monthly bookkeeping you can eliminate the need to hire a full-time in house employee. This means that you don’t have to worry about covering the annual costs of salary, benefits, or overhead. You should still maintain a relationship with a trusted CPA, but you will only need to pay for their expertise to submit your taxes. You can work with your bookkeeper to create a custom monthly package with only the services that you and your business currently need.

 

Frees Up Your Time

 

How many hours could you regain each month if you outsourced your bookkeeping to an expert? Those hours could be used to focus your time and energy on your customers and growing your business. By saving several hours a week, you could turn that time into billable client hours, taking care of other aspects of your business, or even a little free time for yourself.

 

 

Better Technology

 

An outsourced bookkeeper will have access to the latest systems, software, apps, and technology on the market. They will be able to help you streamline your workflows and processes to become more efficient. Utilizing cloud-based accounting software will allow you to have access to your business finances from anywhere at anytime.

 

 

Best Expertise

 

Hiring an outsourced bookkeeper means that you are gaining the skills and knowledge of a seasoned professional. An experienced bookkeeper will have the training and hands-on experience necessary to handle all your bookkeeping needs. It also means that you will have an expert available to answer your questions, help you to streamline your processes, and to explain your financial reports in a way that makes sense to you.

 

 

Scalability

 

Outsourcing your bookkeeping provides exceptional scalability benefits. You can choose the services your business needs now, and then add on additional services as your business grows. Having up-to-date records and accurate reports will allow you to see what areas you may need to cut back expenses and when it may be time to expand.

 

 

 

 

 

Are you ready to regain your time and peace of mind over your finances by outsourcing your bookkeeping to an expert? I’m a certified QuickBooks® Online ProAdvisor bookkeeper, and I help businesses of every color see their numbers in black and white. Schedule your FREE discovery call now to chat with me and learn more!

https://calendly.com/bookkeepingbyprismaticjess/discovery-call