How Outsourcing Your Bookkeeping Benefits Your Business?

Every year, small businesses suffer revenue loss due to inaccurate financial reports. Without professional accounting and bookkeeping services, you are essentially driving your business blindly.

Whether you own a small restaurant, run a manufacturing firm, or work as a life coach, maintaining accurate financial records is crucial and legally required.

Who is a Bookkeeper and How Do They Help in Decision Making?

A bookkeeper maintains the day-to-day financial data of any business. This includes recording all business transactions, setting up accounting records, maintaining invoices, tracking sales, payroll, assets, expenditures, and liabilities.

Key Roles of a Bookkeeper:

1. Tracking of daily transactions
professional bookkeeper can handle the recording of day-to-day transactions.

2. Preparing invoices and managing the accounts receivable ledger
Managing the complete accounts receivable ledger, maintaining invoices from suppliers’ end – and chasing late payments – is also done by your bookkeeper.

3. Keeping an eye on cash flow for better growth
One of the most important roles of a bookkeeper is making sure the business doesn’t run out of cash flow. They track this by regularly monitoring the cash flow statement and the balance between revenues and expenses. Then they can advise if the company funds need extra cash or not.

4. Preparing Books for Cloud Accounting:
It’s the bookkeeper’s role to ensure all the accounts are valid and up to date. This allows the accounting department to make the data transfer process in the cloud account software easier. This also helps in making the tax return filing easier for the business.

In summary, bookkeepers gather and organize financial data so that accountants can focus on strategic financial planning.

Should you perform In-House Bookkeeping or Outsource Bookkeeping Service?
Many small business owners take charge of bookkeeping management on their own to save expenses. However, with business growth and increased transactions, handling bookkeeping becomes more complex and time-consuming. This naturally takes time and the focus away from the core business itself but also causes the risk of not having accurate financial data projections.

When to Consider Outsourcing Bookkeeping:

  • Your tax or financial data reports are inaccurate.
  • You lack time to focus on your core business processes.
  • You forget to send invoices, leading to complex tax deductions and late penalties.
  • You are unsure about your profit and loss reports.
  • You are worried about cash flow.

Benefits of Outsourcing Bookkeeping
1. Cost-effective Solution
Outsourcing bookkeeping services is more cost-effective than hiring an in-house bookkeeper. It saves on infrastructure costs, salaries, and the time spent on hiring and training internal resources.

2. Saves Time
Whether you are handling the books yourself or hiring, training and supervising external resources, it is a time-consuming task. By outsourcing your Bookkeeping, a business owner will free-up a lot of time and effort that allows you to focus on your priority- the business growth.

3. Experience and Expertise of Professional Bookkeepers
Qualified financial experts and accountants will handle your bookkeeping reports when you outsource your service. It will give you expert insights into your business operations, helping you to make the right business decisions.

4. Real-Time Updates and Compliance
Bookkeeping firms stay updated with constantly changing regulations and laws. By working with a reputed firm, you ensure that your accounting reports comply with current laws.

5. Scalability
As your business grows, your bookkeeping needs will change. A bookkeeping firm can scale their services to match your business growth without the need to increase internal staff. They can also become valuable partners, helping streamline your overall business process.

Key Takeaways

Outsourcing your bookkeeping offers numerous benefits, including cost savings, time efficiency, expert insights, real-time updates, and scalability. By partnering with a professional bookkeeping firm, you can focus on growing your business while ensuring your financial records are accurate and compliant.

Accrels provides comprehensive accounting and bookkeeping services, offering proactive advice to improve efficiency and enable smarter financial decisions. Learn more about our services today.