3 Reasons Why Outsourced Bookkeeping Can Help Your Small Business Save BIG!
Outsourcing is a practice that's becoming more and more popular in the business world these days. From marketing and manufacturing to customer service calls, business owners are grabbing onto the benefits of outsourcing certain, every-day aspects of company life. One of the earliest and most effective processes to outsource is bookkeeping, and there are 3 main ways that doing so can mean BIG success for your business.
You may picture a bookkeeper as the person who writes checks, pays employees, and sorts receipts, but in reality your bookkeeper is so much more. They're the financial heart of your business. They keep capital pumping through your company's veins, and without it the whole system comes to a screeching halt. Bookkeeping is a very important, very vital process, that can often mean the difference between life or death for your business. Revenue is the goal of every company. It's the reason you started your business to begin with, but if that revenue isn't properly managed, tracked, and allocated, you could be hemorrhaging cash-flow. This is one reason why who you choose to keep your business's books is so important.
While most big businesses view outsourced bookkeeping as a no-brainer, small business owners often incorrectly assume that such a luxury is only lucrative for the industry, "Big Boys". Nothing could be further from the truth.
Local, Small, and Start-Up businesses can actually benefit MORE from outsourced bookkeeping than their bigger-business counterparts.
Here are 3 reasons why...
The fact is that every business already has a bookkeeper. For most local, small, or start-up businesses this hat is often worn by the owner or their spouse, in an effort to keep costs at a minimum. While this may seem like a smart decision the reality is that you're likely losing more money in unrealized revenue than you think. Time is money, and every minute you spend on back-office tasks like running payroll, paying bills, and balancing bank accounts is one minute you didn't spend doing what you do best..running your business and making it grow! This is where outsourced bookkeeping comes in. Bookkeeping is what they do best. Their knowledge and training gives them the ability to get the job done quickly and efficiently, allowing you to reap the benefits of having a certified professional on your team, without actually having to become one, yourself. For a small business owner with limited help and resources, every minute of the day counts. Contracting a bookkeeping service can buy back this valuable resource, which will increase your bottom line.
Revenue is the life-blood of your business, and you want to keep as much of it as you can. This means keeping expenses low. One of the biggest expenses a small business can have is payroll. The cost of having employees grows higher every year and for small businesses, it can be difficult to afford a qualified, in-house bookkeeper. Someone with the certification and skills necessary to manage your company's books will likely want a full-time position with benefits, which can often be more expense than a small business can support. Outsourcing this position can save thousands in payroll and payroll taxes. You get the full-service help you want without the cost of a full-time employee, and their services are tax deductible.
Another major way that outsourced bookkeeping can save you money is by improving your financial systems. If you are allocating considerable time and resources into collecting money you've already earned, or if you don't have the time to keep up with regularly invoicing your customers, your accounts receivable is hemorrhaging. A certified bookkeeper can repair and reverse this damage for you, and get your receivables running like clockwork. Because they are specialists they have the advantage of knowing proven and effective methods of managing these systems that the majority of business owners don't. Hiring a professional can save you BIG money in the long run.
3. PEACE OF MIND
Being a small business owner comes with its fair share of uncertainties, but the condition of your company's books shouldn't have to be one of them. While outsourcing any aspect of your business may feel uncomfortable, the fact is that as an owner, you can't do it all. Outsourced bookkeeping comes with the added peace-of-mind that your financial systems are being monitored and maintained by certified, trained professionals, who are more than likely small business owners, just like you. The protection and guarantee you get with a bookkeeping service is far beyond any certainty you can have with an in-house employee or loved one.
Also, most outsourced bookkeepers go beyond data entry to data analysis, and are trained in offering skilled insight into your company's financial position. Their knowledge can help you improve profitability, based on your business's key numbers and industry specific insights.
As a professional service, they also focus on continuing education to maintain customer confidence. This gives you the added assurance that your specialist is continually learning and that your business is in capable and vigilant hands.
Outsourced Bookkeeping can be a smarter solution for business, but when it comes to small businesses, the benefits are even BIGGER. To find out what type of bookkeeping service is right for your business take this brief survey, or schedule a call with a Certified Professional Bookkeeper, for more information on outsourcing.