As a small business owner, most of your time is devoted to managing your company. You perform most of the tasks yourself, including finances and bookkeeping.
But after a hard day at work, dealing with numbers is the last thing you want to do. Adding bookkeeping jobs to the list of problems you are already dealing with can get troubling.
Enter the bookkeeper. A one-stop financial solution to solve all your bookkeeping needs. These are highly experienced individuals that you can hire on a part-time basis to help you manage your books.
Read until the end of this blog, to understand 10 reasons to outsource your bookkeeping.
Why Hire A Bookkeeper?
When your business is in its early stages, managing your books can be easy because the volume of the transactions is quite low. But as your business starts growing, the volume of transactions increases as well.
Once the business starts to generate a large volume of transactions, a few things are going to occur. It will take more time for you to manage your books. And more often than not, your books will fall behind. The profit margins, cash flow, expenses will get all fuzzy. Which in turn, starts to make things complicated.
When things get unclear, your ability to make decisions gets hindered since you have no idea about the financial picture of your company. So everything bleeds into everything.
If you are familiar with these struggles and do not want to waste your time on solving your financial matters alone, it is time to outsource your books to a bookkeeper.
How To Get Help With Your Books?
If you are looking to get support with your bookkeeping, here are a few options that you can consider:
Accounting software, especially the DIY ones, are your best option. These tools will help you regularize your expenses, income, cash outflow, cash inflow, inventory management, and financial statements.
Although, if you are a boomer it might take you some time to learn about the software. But eventually, you will ease into it. Once you learn how to operate the software, you will be able to manage your books without the help of an expert.
Hiring an accountant, CPA, or an accounting firm is routine for large companies who need support with their finances, business planning, tax clarifications, and forecasting.
However, hiring an accounting firm can get expensive, especially for a small business owner. What you need is a bookkeeper, who is able to handle more administrative duties.
If you have more work on your hands than you can handle, an in-house bookkeeper is the perfect match for you. An employee that will be able to manage your daily financial tasks and ease your burden.
Although, not every business will be able to afford an internal accounting department or a permanent in-house bookkeeper. These things will cost you space, money, time, and equipment, and that can get expensive.
This is the perfect option for someone who is looking for a part-time employee instead of a permanent one.
Outsourced bookkeeping services will delegate you to an experienced bookkeeper who can handle most of your bookkeeping needs. This includes financial reports, balance sheets, accounts payable and receivable, credit card transactions, cash inflow, and cash outflow.
10 Reasons To Outsource Your Bookkeeping
Outsourcing your books to an expert is the best option for you to manage your small business, without spending too much money. Here are 10 reasons to outsource your bookkeeping.
1. Save Money On Staffing Costs
Hiring an in-house bookkeeper is not affordable for every small business owner. Even a part-time employee will cost you more. You will have to pay them hourly, and even cover employment taxes.
When you outsource bookkeeping, you pay for work that is completed, not a weekly or monthly salary. This saves you from having to dedicate a workspace for an employee, pay taxes, and pay for the idle time between busy seasons.
2. Avoid Inconvenient Softwares
Having specialized software helps you in keeping a record of your financial data. When you decide to purchase DIY accounting software, you will have to invest a lot of time in learning how to operate it and pay a hefty amount.
Instead, if you choose outsourced bookkeeping, there is no need to buy expensive software because your bookkeeping firm will already have the necessary tools to handle your books.
3. Access To A Pool Of Experts
If an in-house bookkeeper faces a problem, they are all alone. Unforeseen delays or problems will occur often, and without any form of assistance, it can be time-consuming.
Alternatively, when you hire a bookkeeping firm, they have the necessary experience to deal with all sorts of challenges. In the majority of circumstances, your bookkeeper will be a talented individual who has worked with a diverse range of clients, so they will be up-to-date with the regulations that may affect your business in the future or in the present.
4. Access Your Books From Anywhere
In this digital age, bookkeeping firms will give you secure access to your financial records from anywhere at any time. Your data will be either in a cloud or in a secure server.
Forget the hassle of financial records in a paper binder. Paper will only limit your accessibility. If you ever need access to your tax records for example, they can be easily accessed with your phone. Without having to commute all the way to your office.
5. A Stress-Free Tax Season
An outsourced bookkeeper will be of the most use when tax season is around the corner. Forget having to stress about your tax documentation. Let your bookkeeper handle that for you. All your documents will be in one place, ready to be filed.
Your bookkeeper will be completely aware of the regulations and provide all the assistance to you or your accountant. When you have an organized, accurate financial record in your hands, things will go smoothly.
At Intrepidium, we want to take the burden of taxes off your hands. When you hire us, you will get a monthly bookkeeping plan, personalized tax expertise, unlimited tax advisory, one-on-one tax strategy planning, and annual tax filings for your business.
6. Scale Your Books Efficiently
As your business starts growing, your books will also grow. That is when you will need to hire more bookkeepers, which will add substantial costs and cuts into your profit margins.
But when your business is stagnant, business is slow, your in-house bookkeeper will still be enjoying the same benefits and payroll as they did during the busy season. And your employee tax obligation will remain the same, no matter how much revenue is coming in.
In this case, outsourcing your books to a firm will help you save money. Bookkeeping services are quite flexible and easily scaled to the fluctuations in your business. This is quite convenient in off-seasons because the service can easily adapt to the needs of your business.
7. Improve Your Cash Flow
By simply knowing where your cash flow is, you can identify where your business stands. Being able to have a clear picture of your finances is crucial in making future decisions. Similarly, clean books can allow you to better identify potential cash crunches, follow up on unpaid invoices and build up your reserves.
Moreover, you can identify which items are more profitable than others, and which vendor is providing you the best price. Outsourced bookkeeping services will allow you to access the most updated version of your financial records, and thus help in making business decisions. The end result can be a huge influx of cash and a larger bottom line.
8. Save More Time
Payroll deductions and tax filings are often overwhelming to business owners. Instead of wasting your precious time, outsource your internal accounting to a bookkeeping firm. The trained specialists can efficiently take care of these problems for you.
So you can spend your time running the business, focusing on key projects, and achieving your goals.
9. Reduce Errors
An in-house bookkeeper will need an ample amount of time to get adjusted. Sometimes they might need a few training sessions and you might have to test out a few individuals before you keep a permanent employee in that role.
Outsourcing on the other hand will save you the hassle of training, vetting, and hiring an individual. Bookkeeping firms make their bookkeepers go through rigorous training and certify them before outsourcing them to you. All you need is to get them onboarded, familiarize them with your books and in no time the experts will handle your finances without errors.
10. Enhanced Safety And Privacy
Bookkeepers are supposed to handle sensitive financial data, and your financial records are in secure hands most of the time. Hiring an in-house bookkeeper will mean that you are placing all of your eggs in one basket.
When you hire a firm, they are liable for any leaks in your financial data. Their employees are bound by a contract to safeguard your records. So you know you are in safe hands in the end.
With these benefits of outsourcing accounting services to a bookkeeper, you can keep your financial records, tax filing procedures, and future decisions in check. Save yourself time and money by hiring a bookkeeping firm.
Intrepidium is one of the best financial companies in Canada. Suited for small business owners at the perfect price. Feel free to contact us at email@example.com or call us at 778-800-7976 if you are having problems managing your books.
We hope that you enjoyed reading this article. Make sure to check out more blogs on our website. Until the next one!