Four Good Reasons to Outsource Your BookkeepingYou, like many other small business owners, might be asking yourself, “Why in the world would I pay someone to manage my books when I can just do it myself?” Many small business owners adopt this mentality in an attempt to safeguard their checkbooks by avoiding yet another budget item on their laundry list of monthly expenses. Truth be told, business owners that partner with a top-notch bookkeeper do themselves (and their checkbooks) a huge favor. Here are four reasons why outsourcing your books makes sense:
You need to know where you are and where you are going
I would imagine that the gauges on your car are functional. I would also imagine that you peer down and glance at them every-so-often when you are driving. Your books, and financial statements, are the “gauges” of your business – and you are driving it. A quality bookkeeper will provide you with timely financial statements that show you what has happened in your business so far and where you currently stand. Chances are, if you’re doing your own books, you aren’t updating them timely enough to use the information.
That being said, the best indicator of your future is your past. Quality financial statements can help you see the areas where you’re excelling and struggling. Without knowing this information, you have no way to strategically set your trajectory for the future.
You have more important things to do
Unless your company offers bookkeeping and tax services to clients, you shouldn’t be touching them. As a business owner, your goal should be to transition from working in your business to working on your business. Your time is better spent on maintaining current client relationships, on-boarding new clients, actively searching for avenues to grow your business, and the like.
A quality bookkeeper will relieve you of the number-crunching headache and provide you with the information you need to take your business to the next level.
It’s less expensive than hiring in-house accounting staff.
I hope you’ve now arrived at the realization that you shouldn’t be spending your time doing bookkeeping. However, now you’re probably wondering, “Well, who should do my bookkeeping?” Generally-speaking, outsourcing bookkeeping duties is less expensive, less involved, and results in better quality work than hiring in-house staff.
Hiring staff would cost tens – if not hundreds – of thousands of dollars every year, especially if you hire the caliber of professional that is skilled enough to do the job effectively. In contrast, by outsourcing bookkeeping duties, business owners can engage highly-skilled professionals at a fraction of the cost. Additionally, you won’t have to worry about the extra costs associated with staff like worker’s comp., benefits, bonuses, office equipment, etc.
It pays for itself
Unless you have a strong background in accounting and taxation, the chances that you’re making costly mistakes in your record-keeping are probably pretty high. Hiring a trusted professional will ensure that your books are accurate and that you are taking advantage of every tax break possible. In addition, since you are no longer doing your own books, you have more time to make more money for your business. More freedom and more money – what more could you ask for?