One for the books: Why outsource bookkeeping?

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As if company expenses are not enough, hiring a bookkeeper internally can also put an added strain on your budget. You'll need to pay for benefits, vacation, and overhead (among others) on top of their regular salary. These do not even cover for the amount of time and energy you will need to spend to train the employee.

‍The cost-effectiveness alone is enough reason for a company to consider outsourcing a bookkeeper. 

If your accounting team is struggling to keep your books organized and updated in real-time, or if you just want to free your hands so you can focus on more important aspects of your business, then outsourcing may indeed be for you. 

By outsourcing a bookkeeper, you still get full accounting services without having to hire them directly into the company. Hence, you are spared from the burden of paying for associated costs in recruitment and tenure. 

READ: Virtual bookkeeper — how to make it work

Some of the tasks an outsourced bookkeeper can do for you may include:

• Tracking your expenses or revenue - Bookkeepers generally record all of your company’s financial transactions into a ledger. They may also use accounting software to help them organize your books and keep them up-to-date. Real-time accounting is important so you can accurately send invoices to your clients and suppliers. It also adds an added visibility for your management team so they can see the outgoing and incoming funds and monitor your revenue.
  

• Managing account payables/receivables - Bookkeepers also help you keep track of payables to vendors, as well as your purchases. They also keep track of your receivables from clients who still haven’t paid for your services. 
  

• Handling payroll reconciliation - With a bookkeeper, you can easily calculate the salary of your employees and make the appropriate deductions. They also help monitor their taxes and help you with making tax reports to the government. 
  

• Access to Cloud Accounting - Some outsourced bookkeeping firms already have access to premium accounting software which your bookkeeper can use to manage your records aside. 
  

For some owners of growing businesses, outsourcing an external bookkeeper may seem a bit excessive. But always remember that you only need to outsource if it is suitable for your company’s needs or if you need assistance in certain specific areas. 

Here are five good reasons to outsource bookkeeping services:

1. It saves time

‍Back-end office tasks such as bookkeeping can take so much time to do and distract you from doing much more important things. Think of the time you could have spent on creating much more sensible strategies. Outsourcing your bookkeeping operations frees up valuable time, allowing you to finally focus on doing higher level tasks. 

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2. You won’t have to train and manage them‍

You as a business owner are not inclined to train or manage a bookkeeping staff — simply because they probably know more about it than you do. 

In-house bookkeepers need an adjustment period before they can get the numbers right. With an outsourced bookkeeping service provider, you can be assured that you have a team of professional accountants to help you right away on day 1, hence maximizing efficiency.

An outsourcing firm can already offer you well-curated services that are tailored to fit your needs and give you access to the latest accounting software such as Quickbooks. These automated systems can help you seamlessly track your finances. 

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3. They make tax audits and financial reports easier to do

‍Your outsourced bookkeeper may also have comprehensive knowledge of state tax policies and can help you with creating quality financial reports to the IRS and to banking institutions. You can be assured that the books are always accurate without any question to the integrity of the financial data. 

Because virtual bookkeepers meticulously record this information, reviewing it is quick and easy. You can easily view your cash flow history, profits and losses, or a balance sheet at the click of a button. You can then share this information with your business partners, employees, legal and financial advisors.

As your business grows, quantitative insights like this are invaluable.

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4. You can access information over a cloud-based bookkeeping system

Most offices nowadays run paperless operations. Outsourced bookkeeping companies utilize online applications that can handle all accounting tasks. Being online, you and your bookkeeper are able to access and share your records over the cloud. 

Having a centralized database for your finances keeps things simple and organized. 

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5. They help you make smarter, more informed decisions

Many will tell you that when it comes to business, you should follow your instincts and gut — but having a bit of perception helps, too. Having your financial information readily prepared to you by your bookkeeper can help you make better, more informed decisions.

Virtual bookkeepers can help you analyze your best customers or clients and help you decide which ones to invest in. They can also help you decide whether or not you can afford hiring new employees or acquire new resources. 

Time to hit the books. Let BizScale do your accounting. Talk to us by completing this form, emailing sales@bizscale.com, calling 833-722-5310, or booking time on Calendly. Take your business to the next level today. 

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