When you own a small business, your day can go in quite a few different directions. You have to manage your employees, keep up with the overhead, and make far-reaching choices about costs and expenditures. You always want to save money, so you might be tempted to do your bookkeeping. Outsourcing that can have serious benefits, however, which is why you should look at it. If you want to learn more about the benefits of outsourcing bookkeeping, then check out the outsourced accounting services we have to offer, as we have the right resources to make things run smoother at your company.
1. Get Flawless Financial Reporting without a Training Gap
Why outsource accounting for your business? The right outsourced accounting firm won't come with a margin of error you have to live with while they settle in. When you outsource to a virtual bookkeeper, they'll show up on day one with the experience, expertise, and skills necessary to handle what you throw at them right away. Their automated systems and processes will do most of the work for them, often without issue or error. However, they're likely to also have a human team available that knows how to collectively take care of everything.
2. Cut Your Payroll and Operating Costs
When you outsource controller services, such as bookkeeping, it can be very cost-effective to do so. You will be sparing yourself the costs that come with hiring your employees, including salaries or wages, taxes, benefits, unemployment, training, insurance, and recruiting. Plus, you might have the overhead of finding space for them in terms of office area. When you outsource this, you lighten the load on your payroll and only wind up paying a fraction of those costs for the third-party provider who distributes their overhead around all their clients.
3. Avoid Downtime Problems
In addition to the cost savings inherent with outsourcing through collective buying power, you can also prevent overhead costs from going up when your in-house bookkeepers simply aren't available. A big corporation can have plenty of bookkeeping people all have days off for vacation or sick time and keep things moving. However, your small business could be very impacted by one bookkeeper not being available for a day or a week. Someone retiring or moving on creates turnover and training that's even more expensive, especially if you have to pay recruiter fees.
4. Cut Your Payroll and Operating Costs
Why outsource bookkeeping services? Small businesses can access the specialized knowledge that they need. If you choose the right outsourcing firm, then they will have highly trained professionals who aren't distracted. They'll view your business objectively and can provide their industry experience and wisdom to help you with developing best practices. You'll also have access to the specific roles when you need them. Your needs for accounting, a controller, CFO, and bookkeeping are going to fluctuate, so only pay for what you need when you need it.
5. Save Time to Focus on Business Growth
The day-to-day operations of many businesses wind up consuming employees to the point that they can no longer focus on actually growing the business. Logging payments, analyzing them, and reconciling everything can take a lot of time out of any day. A virtual bookkeeper gives you back your time. They can also possibly cost less than paying your team to do it or handling it yourself. Instead, you can focus on improving operations, whether it's evaluating your business processes or making your customer service better.
6. Be Crisis-Proof: Easy Scale Up or Down
One of the benefits of outsourcing accounting services is that your bookkeeping operations can be scaled up or down when need be. You want your business to grow, but it's likely to do so in spurts that you don't see coming. Catching up with your backend operations might take time, and if you struggle with that, it can actually slow down the next growth spurt. You might also have cycles of growth spurts and slumps. When your bookkeeping is outsourced, you can adjust your services based on your needs without a roller coaster of internal staffing issues.
7. Take Advantage of a Wide Range of Accounting Services at Your Demand
The advantages of outsourcing bookkeeping services include many other services that leave you free to work on core business functions. Things you might be able to outsource include:
- Payroll Services: Keeping your employees paid on time improves productivity and morale.
- Audits: Make sure everything is lined up as it should be.
- CFO: You'll need this professional at certain times.
- Financial Planning: This is your roadmap to the future.
- Cash Flow Management: Cash flow is crucial for any business, but it's of paramount importance for a small business.
- IRS Representation: If you ever have to face an IRS audit, you don't have to do it alone.
8. Leverage the Power of Accounting Automation
The day-to-day running of your business eats up valuable time, but you can use outsourced accounting to automate many processes that save time. This is especially true if you are still a small business, although businesses of all sizes want to minimize their overhead costs. When multiple clients are all using the same bookkeeping provider, they're collectively sharing the costs of the tools and information provided by that service. That makes it cheaper for everyone. Your business can have the same processes and tools that the big corporations have to level the playing field.
9. Be Ready for Tax Season with Minimum Extra Effort
Businesses wind up with a lot of financial information. That can make tax season very stressful when you think about all the numbers and documents that you have to come up with. However, it can be easier than you think. Outsourced bookkeeping can mean letting someone else take care of all this. A virtual bookkeeper can help you get ready for tax season along the way. You'll then be able to file nearly immediately, and you can benefit from many different tax deductions that might be available to you.
10. Make Smarter Business Decisions
Outsourcing has other benefits you might not think of immediately. You might rely on your gut instincts for a lot of business decisions, but you can also make smarter moves when you have access to things other than your intuition. Third-party professionals can give you objective viewpoints and advice, and virtual bookkeeping platforms provide you with hard numbers you can use to see where you should pay more attention to things. You'll see where you should put more investment in resources. However, you'll also possibly see things you shouldn't spend so much time and energy on, and saving money and time is important for small businesses.
Doing your bookkeeping can be a time-consuming task, so outsourcing it can free you and your team up to focus on working on your business instead of inside it. If you want a clear understanding of what independent professionals can do for you, then contact us to see what an expert CPA firm can do for your business.