Did you know that around one-third of all businesses outsource their bookkeeping?
This is the process of recording your company’s financial transactions into organized accounts, and you need to keep on top of your bookkeeping if you want your business to be a success.
So, why should you outsource this important task rather than take care of it in-house? Let’s take a closer look.
1) To save on operational costs
Although you may think that the opposite would be true, it is actually more cost-effective to outsource a bookkeeper than it is to hire one in-house. This is because you only have to use outsourced bookkeeping services as and when you need them, which can potentially save you as much as 40% on operational costs.
You also need to remember that hiring an employee involves a lot more expense than just their wages. You have to pay for their insurance, training, and benefits, not to mention the recruitment process.
2) To reduce paperwork
If you have ever done your own bookkeeping, you will know only too well how much paperwork is involved. This is incredibly time-consuming and can take your focus away from other crucial aspects of your business, such as customer service, innovation, and advertising.
However, when you choose to outsource your bookkeeping, you will have so much extra time on your hands which you can use to drive your business forward.
3) To streamline processes
Most outsourcing companies such as ORBA Cloud CFO Services use a cloud-based bookkeeping system that can help streamline your accounting processes and make your business more efficient.
One of the best aspects of the cloud is that you can access your data from anywhere, which means that you and your team can work remotely without any restrictions. It also enables you to collaborate more easily and access your finances in real-time.
4) To reduce errors
Human error is unavoidable, but when it comes to accounting, it can prove hugely problematic. If you currently have someone inexperienced looking after your finances, they are much more vulnerable to mistakes that could be putting your business, its employees, and customers at risk.
However, if you choose to hire a professional bookkeeper, you can enjoy peace of mind that your accounts are being properly taken care of, as most outsourced services utilize automated bookkeeping software.
5) To access detailed financial reporting
One of the most notable benefits of outsourced bookkeeping services is that you gain access to detailed financial reporting. This means that you can review your balance sheets, cash flow, and any profits and losses whenever you want to. This, in turn, can help you to make more informed decisions regarding your business and its future.
Furthermore, professional bookkeepers record information in a more organized way, which makes the extraction of relevant information much faster and easier.
6) To facilitate tax season
Most business owners dread tax season, but it doesn’t have to be this way. Outsourced bookkeeping companies will make sure that all your records are tax compliant so you do not need to worry about any nasty surprises or errors.
In fact, most outsourced bookkeepers will make sure your taxes are up to date and ready to go before tax season even arrives.
7) To scale up or down with ease
The accounting services you need are likely to vary from one time to another depending on how well your business is doing. The beauty of outsourced accounting services is that you can add, remove, and adjust what you need whenever you need to.
For example, if you are planning to expand your business, you can choose to add new services, or if you need to downsize, you can remove certain services that you no longer need.
How to choose outsourced bookkeeping services
Now that you know why you should outsource your bookkeeping, the next step is to find the right company to take care of this for you. When it comes to choosing outsourced bookkeeping services, there are several factors that you need to consider:
How much expertise and experience do they have?
If you are going to entrust a third party with your financial records, you need to be confident that they know what they are doing. Make sure you carry out a background check on each company you are considering to ensure they actually have the level of experience and expertise that they claim.
It can also be a good idea to look at customer reviews and testimonials, as this will give you a better understanding of how they operate.
Are they transparent with their services?
Transparency during the bookkeeping process is crucial, so you need to make sure that the company you choose is completely transparent with its services. You also need to find out what method of communication they use with their clients so that you can receive relevant work updates with ease.
Do they comply with security standards?
Equally important as transparency, the bookkeeper you choose needs to comply with security standards, as any data breach could prove to be disastrous for your business.
Ideally, you want the company to agree to sign an NDA (non-disclosure agreement), which prevents them from disclosing any information about your business without your authorization.
Do you feel comfortable working with them?
When it comes to your finances, it is better to be safe than sorry, so you need to make sure you choose a company that you feel comfortable working with. Before making a decision, ask as many questions as you want, and if you do not like what you are hearing or you have a bad feeling about a particular company, then trust your gut.
The bottom line
As you can see from the above, there are so many reasons why you should outsource your bookkeeping, including to save you time, money, and unnecessary stress. It is also worth remembering that outsourced bookkeeping services can be tailored to the bespoke needs of your business and can be upscaled or downsized at any time.
When choosing an outsourced bookkeeper to work with, make sure you feel completely confident in their abilities and comfortable with their practices as, remember, they will be in charge of managing all your most sensitive information.
