Many business leaders are surprised to discover the many ways their company can benefit from outsourced bookkeeping services. We've boiled it down to the top three. Here's the rundown …1. Gain More Time to Build Your Business
As a bookkeeping services provider, I work with clients in many different fields, with different levels of complexity in their financials. But they all have one thing in common: As their companies grow, eventually they all realize that they're spending too much time on bookkeeping.
The problem is twofold: Many business leaders find bookkeeping to be a stressful and time-consuming energy drain — and that loss of energy leaves them unable to focus on two areas that are absolutely vital to their company's growth: business development and strategic planning.
Find the right partner, and you not only address the first challenge but also receive invaluable support in tackling the second. When you outsource to a professional bookkeeping services company, you can work with a team that has extensive experience and their own management structure. In addition, they provide real-time financial insight. From monthly financial packages (e.g. balance sheets, income statements and statements of cash flow) to more advanced analysis (e.g. cash reporting and budget-vs.-actual analysis), you'll have the up-to-date financial information you need to make critical business decisions.
2. Reduce Risk
Business owners need to comply with many rules and regulations — and to keep up to date with annual changes. Worrying about complying with all these rules and regulations can be another source of stress and distraction. When you outsource to professionals, you gain peace of mind.
From preparing and submitting sales tax filings to collecting W-9s and managing submission of 1099s to the IRS, bookkeeping services professionals know all the rules and will ensure you remain in compliance. They'll also apprise you of new rules.
Another way in which an outsourced bookkeeping services provider reduces risk is through segregation of duties. They establish processes and controls, along with providing extra sets of eyes, to help prevent mistakes and guard against fraud.3. Prepare for Business Growth
When you're starting a business and only have a couple of clients, it's easy to record your revenue and expenses in a simple spreadsheet. But that very ease and simplicity can set you up for problems once you start to grow. Things get complicated fast — and you know you can't afford to lose new clients or important vendors because of bookkeeping hiccups. So one day you wake up and realize you set yourself up to be a full-time bookkeeper who's trying to run a business on the side, instead of the other way around.
Imagine starting your business with a scalable system in place. You won't need to scramble to find a new system when you're in the middle of rapid growth. Your clients and vendors will enjoy seamless operations—and you'll have a much smoother path to growth, especially at tax time.
A bookkeeping services provider can also draw upon their wide base of knowledge to offer additional services as you need them, including class and project accounting or analysis and planning. You might not know the financial ramifications of opening a new location or starting a new service line — but your bookkeeping services provider will. And you can enjoy the benefit of this expertise without having to provide benefits or devote management time to overseeing an in-house hire.
Different Problems, a Common Solution
Different businesses face different challenges. But they can all benefit from the expertise, processes and systems that come with outsourced bookkeeping services.