As a business owner, you have a lot of things on your plate. You need to worry about marketing and customer retention. You’re concerned with monitoring your competition and industry trends. You need to ensure that you’re hiring the right staff, too. As such, trying to handle bookkeeping on top of everything else can be a nightmare. Thankfully, there’s good news – you don’t need to handle it on your own. In fact, there are some compelling reasons that you should outsource bookkeeping to the professionals.
Focus on What You Do Best
One of the most important reasons to consider hiring an outside firm to handle your books is this: it lets you focus on what you do best. Rather than trying to interview and hire in-house staff to handle accounting matters, you can hand off your books to an expert team and get back to growing your business. While this is a crucial advantage to new business owners, it is also a significant benefit for owners and decision makers with established firms. Anything that enhances your ability to focus on business growth and development is a good thing.
It might sound illogical, but hiring an outside firm to handle your books can actually save your business money. How does that work? Actually, it’s pretty simple. How much money do you spend on the hiring process? The actual cost of onboarding just a single employee surprises most hirers. Now, multiply those costs by the scope of an entire bookkeeping team. By working with a professional service provider, you avoid those costs. Reinvesting the money you save bolsters company growth.
Of course, you also avoid the time spent handling interviews, verifying references, following up with previous employers and the like. In addition, you don’t need to worry about end-of-relationship costs and complications. Terminating an employee is never a simple matter, but if your outsourced bookkeeper doesn’t work out to your expectations, it’s easy to end the relationship and find another provider.
Build a Leaner In-House Team
Working with outsource bookkeeping providers can help you run a more streamlined business. Every employee you bring onboard comes with long-term costs that ultimately increase your liability. For example, you’ll be liable for benefits, for vacation time, for paid sick time, for 401(k) contributions, and for payroll taxes on each person you hire. By outsourcing your needs, you can create a leaner in-house team and cut your costs while still ensuring that you’re able to benefit from the expertise and specialization needed to meet your customer or client needs.
Accuracy and Peace of Mind
How much experience and knowledge do your employees have with bookkeeping? How many years have they worked in the industry? What level of education do they have? How much advanced knowledge do they possess? These are crucial questions to answer, but, sadly, too many business owners can’t do so.
You could be stuck with a team comprised of entry-level accounting staff. While that will be fine for general needs, it doesn’t do you any good when it comes to more complicated problems and challenges. By working with an outsourced accounting firm, you can avail yourself of in-depth experience and knowledge to ensure that your books are as accurate as possible. The immediate upshot of that is you get to enjoy peace of mind, and reduce the amount of stress you carry.
Legal compliance is a vital consideration for businesses in all industries. Today, businesses must contend with stricter regulations and requirements than ever before. By working with an outsource bookkeeping provider, you ensure compliance with applicable laws and regulations at every step along the way. Hiring your own bookkeeper may not provide you with that benefit. Sure, the individual you bring on board could excel at what they do, but he or she could be completely out of the loop when it comes to legal compliance and requirements that apply to your business. With an outsource provider, you don’t have to worry about that.
Support During Tax Time
Tax time comes around every year, and it’s vital that you prepare your business when it does. By working with the right outsource provider, you can ensure that everything is ready to go ahead of time. In fact, with the right provider, you’ll find that you have access to accountants and that the team can even work with the CPA you’ve hired. With that being said, not all providers offer accounting services, so you’ll need to compare your options carefully to ensure that you have access to the tax time support you need.
Benefit from Expertise
Let’s face it – mistakes and errors with your books can be incredibly costly. In addition, your business could face industry or niche-specific challenges that require real experience and expertise to handle. A general bookkeeper won’t be able to help you here. You’ll need to work with an expert. An outsource provider can deliver the expertise, knowledge and experience that you need to handle unique, complicated situations while ensuring complete accuracy and transparency throughout the entire process.
Doing Your Due Diligence
Obviously, there are outsource providers worth your time, but that’s not true for all of them. Whether they offer only basic bookkeeper services, lack accounting knowledge, have no expertise with your particular industry or niche, or simply don’t provide the level of service you need, avoid these firms. Look for a provider with years of experience, a commitment to complete accuracy and transparency, and that can deliver accounting service in addition to bookkeeper duties. Of course, you’ll need to make sure the provider you ultimately choose offers flexible plans that can be tailored to suit your firm’s specific needs and budget, as well.