The outsourced bookkeeping benefits are numerous. These benefits include; working with an industry professional, receiving valuable financial guidance, saving time managing the finances, and saving money outsourcing the accounting function.
Let’s talk about outsourced bookkeepers. Here are four benefits to hiring an outsourced bookkeeper to help you manage your business finances.
An outsourced bookkeeper is an expert at managing, sorting and recording your business’s financial transactions. They’ve spent time developing their skills and experience. During that time, they’ve also seen and resolved bookkeeping-related issues that you may come up against. Their expertise makes them more efficient at managing those issues.
Beyond that, they understand business trends and challenges others in your industry face, and can help you move through those as well. They also know what questions to ask to help you make important decisions and can share best practices with you.
Your bookkeeper not only helps you maintain accurate records, but they also understand your financial circumstances. They can assist you with budgeting and sticking to your budget. They’ll help you come up with a realistic financial plan that enables your business to grow while achieving short and long-term goals. If your outsourced bookkeeper is a CPA they can also provide advance tax guidance and forecasting models.
As a business owner, you likely have many activities to focus on. In bookkeeping alone there are numerous tasks to be responsible for, such as:
- Collecting and recording transaction data
- Sorting receipts
- Classifying expenses
- Invoicing customers
- Paying vendors
Bookkeepers take on those tasks so you don’t have to. It’s not just about the energy you put into them, it’s about the fact that unless you’re an expert at bookkeeping, it’ll likely take you longer to complete these activities than it would take a bookkeeper.
Think of the time you spend during an average week managing your books, then think of the time you spend during a high-pressure week, such as during tax season. That can add up to a lot of extra hours.
By hiring a bookkeeper, you save yourself that valuable time for other activities such as marketing, perfecting your products or even spending time with family.
An alternative to outsourcing is to hire a bookkeeper inhouse. Before you do, consider the following. According to the U.S. Bureau of Labor Statistics, the mean annual wage for bookkeeping, accounting, and auditing clerks is approximately $45K. If you outsource your bookkeeping function you will save thousands. Even if you hire an inhouse bookkeeper part time the savings are worth considering.
Additionally, there’s a time cost to doing your own books and a potential money cost in the form of missed opportunities. The time you spend doing your own books is time you could potentially be out creating or taking advantage of new opportunities for your business. Outsourcing your bookkeeping frees you up so you have the time and energy to identify potential opportunities. They can also advise you on whether you’re in a fiscal position to jump on those possibilities.
Lastly, the expertise bookkeepers bring to their activities means they’re likely to save you from costly mistakes that could affect your finances.
Outsourcing your bookkeeping function is a sound business decision as it gives you access to expertise and guidance you might not otherwise have. It also frees up your time, money, and other valuable resources so you can take advantage of other business opportunities.
To learn more about outsourced bookkeeping benefits contact us!