As your business grows, so do the systems necessary to support it. Whether you have DIY bookkeeping or an outsourced bookkeeping services provider, your business may get big enough that you consider setting up an in-house bookkeeping department.
Some businesses may consider it a natural progression to move from outsourced bookkeeping to having an in-house department. However, continuing with outsourced bookkeeping services has many advantages over the alternative.
An outsourced bookkeeping services provider can be a great partner to your business — offering not only the skills you need at the levels you need, up to and including CFO, but also contributing valuable financial insights. And it all comes without the added expense and responsibility of hiring and managing new employees.
The Bookkeeping Expertise You Need Right Now
An experienced bookkeeping services provider doesn't have a steep learning curve. As pros who are familiar with a variety of businesses, they can quickly determine how much support you need in specific areas — whether it's a basic level, such as recording daily transactions and month-end close, or more detailed assistance, such as budgeting, planning and analysis.
The level of support is both flexible and scalable. You get only the outsourced bookkeeping services you need, when you need them. As your business grows and you find you need CFO or controller-level services, but not a full-time CFO, you can add the CFO service at the level your business needs. In addition, if you add a new line of business or a new service offering that affects your bookkeeping, you won't need to hire a bookkeeper with that specific skillset. Instead, your bookkeeping services provider can add that skillset to the team that works with you.
Controlling Your Overhead
Outsourcing also allows you to expand your business without expanding your overhead. At some point, a bigger staff needs a bigger office. An outsourced bookkeeping services provider can handle its responsibilities remotely.
Outsourcing also provides savings on the overhead "intangibles." You don't have to offer benefits, provide training or repeat the expensive and time-consuming process of hiring someone each time you have the inevitable employee turnover.
Built-in Checks and Balances
A cardinal rule of business bookkeeping is that you must provide built-in controls by segregating duties. That isn't always practical at smaller businesses. Say you've got just two employees and one of them is going on vacation for two weeks. That's going to put all of the financial oversight in one person's hands during that time. Either that, or you'll have to take on added responsibilities yourself — and your time is already at a premium as you work to grow your business.
It can be tempting to ask a new hire (e.g. your new operations person) to add bookkeeping to his list of duties. But not only does bookkeeping require expertise and knowledge that this employee may not have, he may become dissatisfied and quit. In addition, your business could lose the checks and balances that your bookkeeping services provider established.
That's never an issue with outsourcing. You get a team of professionals who practice airtight controls and provide whatever work coverage is necessary.
A Partner Who Understands Business
Even if you don't like bookkeeping, you and your outsourced bookkeeping services provider have something in common: As fellow business owners, you face many of the same challenges.
At the same time, a bookkeeping services provider can provide an outsider's perspective on your business combined with an insider's insight. They won't just crunch numbers. They'll review processes to root out waste and inefficiencies. That allows you to channel more of your time, money and energy into making your business the best it can be.
A Bookkeeping Solution That Helps Your Business Grow
As your business grows and your bookkeeping and financial tasks increase, your bookkeeping services provider can scale right along with them. As a result, you'll save the expense and management burden of setting up an internal bookkeeping department and hiring full-time staff. Plus, you'll enjoy open-ended access to added services such as budget, planning and analysis, which will give you the financial insight you need to grow your business.