Imagine this scenario: it’s the end of the year, and you’re up to your eyeballs in receipts, invoices, and tax documents. You know you need to get your books in order, but the thought of doing it yourself makes you want to pull your hair out. Sound familiar?
If you’re a small business owner, chances are that you’ve struggled with bookkeeping at some point. After all, keeping track of your finances is vital to the success of your business, but it’s not always easy (or fun) to do.
The good news is that you don’t have to do it all by yourself.
Outsourcing your bookkeeping can save you time, money, and a whole lot of headaches. While it may seem like a big step, it’s a very common practice—and one that can have a significant impact on your business.
Top 9 Reasons For Outsourcing Bookkeeping Services For Small Businesses
If you’re still wondering, “Is outsourcing accounting services right for my business?”
The answer is, it depends.
Every business is different, and there’s no one-size-fits-all answer to this question; however, there are some general guidelines you can follow to help you make the best decision for your business.
Here are nine of the top reasons to outsource bookkeeping services for small businesses:
#1. Adaptability and Scalability:
As your business grows, your bookkeeping needs will change. And if you’re doing your own bookkeeping, this can be a major headache—especially if you’re not a bookkeeping expert.
Outsourcing your bookkeeping to a professional (preferably a CPA) gives you the flexibility to scale up seamlessly. This way, you can rest assured knowing that your bookkeeping needs will be taken care of—no matter how much your business grows.
If, on the other hand, you’re currently using a software solution or DIY bookkeeping system, you may find yourself quickly outgrowing it as your business grows. The downside? You’ll either have to invest in an expensive upgrade or start from scratch with a new system—neither of which is very appealing.
#2. Increased Efficiency:
Another benefit of outsourcing bookkeeping services is increased efficiency.
When you outsource your bookkeeping, you can rest assured knowing that your books will be in good hands. And, because bookkeeping is such a time-consuming and detailed process, this frees you up to focus on other areas of your business.
In fact, one of the main reasons businesses outsource bookkeeping is to allow business owners and managers to focus on running and growing the business instead of getting bogged down in the details of recordkeeping.
#3. Opportunity cost:
Yes, outsourcing bookkeeping services will cost you money.
But, if you’re doing your own bookkeeping, you need to ask yourself how much your time is really worth.
Chances are high that you could be using your time to generate revenue for your business rather than spending hours poring over financial documents. When you outsource bookkeeping services, you’re not just paying for the bookkeeper’s time—you’re also freeing up your time to focus on more important things.
Accuracy is vital when it comes to bookkeeping. An error in your books can have serious consequences—including costly fines from the Internal Revenue Service (IRS). With so much at stake, it’s essential to make sure your books are in good hands.
A professional bookkeeping service will have the experience and expertise to ensure your books are accurate and up to date. Using their skills and expertise, they can adjust journal entries, reconcile accounts, and catch errors that you might miss.
It is not enough to be accurate—your bookkeeping also needs to be timely.
Between tracking expenses, recording income, preparing financial statements, and tax planning, there’s a lot to keep up with. And if you’re not careful, it’s easy to fall behind. Tax penalties for late filing can be costly, not to mention the added stress of trying to catch up.
An outsourced accountant will make sure your books are always up to date, so you can avoid these penalties and breathe a little easier.
#6. Audit Protection:
Audits can be either financial or compliance-related, and they’re triggered by anything from discrepancies in your books to errors on your tax returns.
If you’re being audited, it’s important to have a professional bookkeeper on your side. They can help you pull together the necessary documentation and work with the auditors to resolve any issues.
#7. Cost Savings:
Many businesses worry that outsourcing bookkeeping services will be too expensive.
But, when you consider the cost of hiring a full-time bookkeeper, the cost of bookkeeping software, and the opportunity cost of doing your own bookkeeping, outsourcing can save you money.
On top of that, a good bookkeeping service will help you save money by catching errors, preventing IRS penalties, and maximizing your tax deductions.
#8. Minimize personnel
By outsourcing your bookkeeping, you can avoid the cost and hassle of hiring a full-time bookkeeper.
You won’t have to worry about things like payroll taxes, employee benefits, or training costs. And, if you outsource to a bookkeeping service that uses the latest technology, you won’t have to worry about the cost of upgrading your bookkeeping software, either.
#9. Improved Decision Making
Good bookkeeping is essential for sound decision-making.
If your books are a mess, it’s impossible to get an accurate picture of your business’s financial health. This can lead to costly mistakes—like investing in new equipment when you can’t afford it or expanding your business before you’re ready.
Outsourcing your bookkeeping gives you access to accurate, up-to-date financial information. Which, in turn, allows you to make sound, informed decisions about your business’s future.
Outsourcing your bookkeeping is a prudent business decision. It saves you time, money, and hassle while giving you the peace of mind that comes with knowing your books are in good hands.
If you’re ready to outsource your bookkeeping, contact us today. We’ll be happy to answer any of your questions and get you started with our services.