As a small business owner, you want to get your hands on all aspects of your venture.
Whether it’s handling customer service or client management – you are there and doing everyone’s job. But does your constant involvement make you a good business person? And are you able to do justice to each and every aspect of your business efficiently?
Many people who start a business make the same mistake. They want to do everything and are so busy involved in the day-to-day operations that they neglect one of the most important parts of a business – its financial health.
As we all know, accounts are an essential part of running a business and require constant monitoring. Failure to do so can affect the business’s financial health and result in stagnated growth. In fact, 20% of small businesses fail in the first year and lack of proper planning is the common reason amongst all.
This is why you need to know the benefits of outsourcing your bookkeeping to a third party. Your finances should be in the hands of a person that makes your business’s financial health their top priority. You can be a jack of all trades and try to do this yourself but that will never work as you will constantly remain distracted with the operations of the business.
To help you make the decision, we have put together a few of the advantages of outsourcing bookkeeping below.
1. Complete Focus on Business
As a business owner, the growth of your business needs your complete attention. And it can be hard to focus on money-generating activities when you are also trying to manage the finances at the same time.
On the other hand, when a bookkeeper is handling your finances, you have the ability to look at your business as a whole. Therefore, it is important that you delegate the task to those who are skilled in that subject. This way, everyone will have a role to fill and they will get their job done more efficiently – without the need for your constant involvement.
2. Outsourcing Can Save You Money
It might be hard to believe but outsourcing a bookkeeping service can save you money. This is because when bookkeeping is done by a third-party, you will only be paying for exactly what is being done.
However, if you hire a bookkeeper in-house, you would be paying for them on the payroll even though they wouldn’t be bringing any money to your business. They won’t be sitting for you to give them work. And will only be doing the required financial assessment when you send them the financial information for your business at the end of the week or month.
3. Outsourcing Can Save You Time and Energy
As we mentioned above, small business owners wear a lot of hats. They are always juggling with one task or the other to keep their business running smoothly. However, with so much on your plate, it is hard to give full attention to every aspect of the business. As a result, the financial health of the company suffers.
This is why delegating your business to a professional comes in handy. While you are busy with the day-to-day operations, the bookkeeper will ensure the financial health of your business is optimal – giving you the free time and energy to focus on your business.
4. Expert Consultation
While you may have all the bookkeeping tips to get your business running smoothly, nothing can compare to expert advice. A bookkeeping company has the expertise and will focus solely on the unique needs of your business. This means that the company will not be doing any sales or marketing – and working solely on the finance of your business.
Choosing expertise can never be compromised when it comes to business. The bookkeeping company you choose will be great at what they do. They will also be updated with the know-how of the industry and follow the best practices to benefit their clients. The company will also have the latest tools and software to ensure that your work is done in an efficient manner. In simple words, the bookkeeping company will give you access to the latest tools without the need to purchase them separately.
As a small business, you will not have the budget to pay for extremely expensive bookkeeping programs – nor will you have the time to keep up with the changes and regulations that happen in the finance world. The system will also create a backup of your records to ensure that if there is any need for an audit, you will be more than prepared for it.
5. Access to Professionals
When you hand over your business account to a professional bookkeeper, you are placing your financial records in the hands of a professional team that does best work.
This is very important because bookkeeping takes up a lot of time when done independently. But when you hire a team to do the work, they check up on each other’s work to ensure your records are perfectly aligned.
6. A Professional Focus on Bookkeeping
A small business has a bustling atmosphere and hectic as the focus to ensure money is generated every day remains the highlight. This is why it is important that your small business hires a team that can thrive in a high-energy environment. However, there are distractions in the office and bookkeepers need to eliminate those to work efficiently.
As you see, an in-house bookkeeper will not be able to concentrate on the intricate details of finance in a hustling bustling environment. Therefore, removing the bookkeeping function from the business environment and outsourcing them instead will help the worker focus on the work at hand.
7. Growth Advice
As a business owner, your primary objective is to give your business constant growth. However, you are still learning and would appreciate any advice you can get in running a business and making the operations smooth. Well, from a financial standpoint you can get the best advice from your bookkeeper. This is why outsourcing your bookkeeping will help your business implement the necessary measures that will allow it to thrive.
Outsourcing your bookkeeping will enable your business to expand and cut back very easily. Whether you are looking to grow your business or cut down on the spendings, a reliable team will provide you with different plans and options to help you achieve your goals. Outsourcing will provide you with the flexibility that an in-house bookkeeping service will not be able to provide.
Outsourcing your bookkeeping will benefit your business immensely. As an entrepreneur, you are not a superhero and cannot be the jack of all trades. This is why you hire employees to help you build your business effectively. However, when you do not have the budget to bring in additional employees, you can outsource bookkeeping to get expert advice for the fraction of the price.
Remember, that your ultimate aim is to grow your business, not stagnate its growth. And as a business owner, you should know when to give up control and when to take control. It is important that you understand the difference so you can give your business the best environment and ample room to grow.
Carole Anne is the bubbly head honcho of Key Admin. She started the company in May 2012 and has successfully grown it into a thriving bookkeeping business. She is one busy, determined woman. On a daily basis you’ll find her buzzing between developing business systems, liaising with clients, imparting key business advice and managing software integrations. She’s also a BAS Agent Member of the Institute of Certified Bookkeepers, a Certified Xero Advisor, Advanced QuickBooks Online Advisor and has an Advanced Diploma in Business and Finance.