9 Reasons Why You Should Be Outsourcing Your Bookkeeping
In 1990, businesses began outsourcing their bookkeeping to minimize costs and increase profits as inflation ate away at their margins.
Today, more than 30% of businesses outsource their bookkeeping. If you average 15 to 55 transactions per month, then using a bookkeeper makes good business sense.
Ask yourself this question: Are you working in your business or on it? If you’re working in it, then you are doing everything. If you’re working on it, you are outsourcing some of the administrative responsibilities.
Here are my top 9 reasons why you should be outsourcing your bookkeeping.
#1 Gift of Time
When you’re working in your business, then you’re working many hours more than you’re paying yourself for. Outsource your accounting/bookkeeping will give you more time to spend building your business and with your family.
#2 Unbiased Advice
Bookkeepers will give you unbiased advice when tough decisions need to be made. They’ll give you the bottom line on your profit margins with the clarity needed to make solid financial decisions.
Privacy is paramount when dealing with sensitive financial figures. Bookkeepers understand this better than most and will go the extra mile to ensure your records are kept confidential. Outsourcing also ensures the confidentially of your records is maintained at arm’s length from employees.
#4 More Control
You must have control over your financial records and be able to access specific reports quickly. While your bookkeeper and accountant will have access, you can control who else in your organization is able to access various reports in order to complete their tasks.
Your time is at a premium and when you outsource your bookkeeping, you can use your time to focus on your business. Do you want to continue spending one to two days a week doing your bookkeeping when you could be focusing on customers? Hiring a full time bookkeeper on staff can also eat up more of your productivity each day compared to outsourcing.
Do you know what your profit is? Have you calculated it out per square foot? If you are not filling your space with revenue generating employees, then you are not maximizing your potential business growth. An in-house bookkeeper is not a revenue-producing activity…in fact, it’s a fairly large expense.
#7 Increase Effectiveness
You will increase your effectiveness though the use of a bookkeeper service. You can save, on average, $10,000 per year when all the benefits, government remittances, and salary increases along with vacation pay are calculated in. And let’s not forget your participation and interaction with staff bookkeepers.
#8 Software Licenses & Maintenance
As a mobile business, you probably don’t have a lot of software licenses to purchase or hardware (computers, printers, and other peripherals) in your office. Maintaining the equipment and software can be profit draining simply by having to either upgrade or buy new. Bookkeeper services provide this free of charge, thereby reducing your overall overhead.
#9 Managing Employees
Management is a huge task and to be effective the number of hours spent needs to be kept at a minimum so as to not stress yourself or take away from your business. It takes approximately 100 hours to hire, train, and direct a newly hired employee. Outsourcing your bookkeeping will give you more time and you will have these 100 hours to reinvest into your business.