Every entrepreneur has been there — focusing so intently on making sales, developing new products and hiring staff members that they barely have time to manage the books. But even though it can take up a lot of your time to handle the ledgers, it’s an essential responsibility that can keep your business humming.
That’s where outsourcing can benefit you. You can leave the bookkeeping to experts who will ensure that everything looks good while also checking to find any possible savings opportunities they can identify.
If you’re wondering exactly how an outsourced bookkeeping firm can help you, check out the following 12 ways you’ll benefit from bringing these experts on board.
1. Access Bookkeeping That’s Tailored to Your Needs
By outsourcing your bookkeeping services, you’ll be able to get specific functions tailored exactly to your needs, since these companies specialize in just one thing, and they know the many options that can help you best maximize your return on investment. For instance, if your main problem is that you are having trouble collecting on past due accounts, the bookkeeping service can create a program in which most of their time at the beginning of your partnership is spent collecting accounts due, and then once that problem is rectified, they can shift to more basic bookkeeping services.
Because outsourced firms have essentially “seen it all,” they’ll be able to talk to you about your goals and customize your services to fit exactly what you need.
2. Strengthen Account Security
You might think that outsourcing your bookkeeping will weaken your account security because the data has to be moved offsite, but in reality, the opposite is often true. In many offices, the in-house bookkeeping function is on just one person’s computer, and that staff member is relied upon to keep everything secure. But if that person isn’t an IT expert, they may not know how to spot vulnerabilities or whether the software is up to date.
An outsourced bookkeeping service will typically keep your data secure on a cloud-based system or other shared drive, so you always have access to the information, but in a highly secure format. Bookkeeping companies typically have IT experts on staff who frequently monitor whether the information is well protected, up to date and secure, allowing you to retain access to your data without having to worry about breaches.
3. Get Customized Reports
When you outsource your bookkeeping services, you can let the company know which custom reports you need, and how often you require them. The bookkeeping firm can then customize the reporting schedule to your needs, ensuring that you have all of the financial information at your fingertips, and that it’s always updated. This is particularly useful if you’re dealing with banks or investors, who may often want to see reports on a regular basis.
4. Gain Valuable Time
Outsourcing your bookkeeping services will free up your time so that you can focus more on growing your business and less on balancing the books. If you aren’t sure how much time you spend on bookkeeping services right now, start tallying up the hours when you handle these tasks. You may be surprised at the time investment.
5. Save Money
By outsourcing your bookkeeping operations, you save many costs associated with full-time in-house bookkeepers like salary and benefits, office space, computer equipment, employment taxes, hiring and training, and more. You only pay for what you need while still accessing financial expertise. The price paid to the vendor is the only cost, thus reducing the overhead cost of separate infrastructure requirements. In addition, you can scale up or down at any time, allowing you to make strategic decisions about your budget and your bookkeeping program.
6. Make Better Decisions Faster
Your outsourced team provides you with all the necessary information to make the right financial decisions for the future. They will provide you with reports like profit and loss statements and other documents required to operate your business. These experts are up to date with the latest regulations, government compliance and tax laws, ensuring that you can make business decisions quickly and based on analysis and data, rather than on conjecture.
7. Scale Your Services When Needed
Outsourced bookkeeping services allow you to scale your service up or down with the changing needs of the company, without hiring and training more staff. When your company grows or experiences market changes, the outsourced bookkeeping system adjusts your level of service to meet your demands.
8. Minimize the Risk of Data Loss
Your outsourced team keeps your data on highly secured servers, using the best encryption technology, and helps you detect fraud or errors. They provide you with the necessary data security you’ll need, regardless of what type of emergencies may occur – ranging from fires to floods to power outages. These services also help you to save money that you might have otherwise invested in buying that technology.
9. Gain Accuracy
Outsourced bookkeeping firms with professionals who have strong expertise and robust knowledge can provide consistent and accurate results and records, without any errors. They can work virtually or on site to fulfill your company’s ongoing accounting needs.
10. Access to Advanced Tools
You’ll get quick access to your business’ accounting and computing data from any location, whenever you need it, thanks to the technology deployed by outsourced bookkeeping firms. These services also grant you access to the best tools and services in the industry, so you’ll be equipped for audits any time.
11. Improved Cash Flow
The outsourced accounting team helps you reduce interest costs, overhead expenses, payroll fees and more – to stay afloat and grow. They also help you track the company’s finances and maintain a positive cash flow, which is required to conduct operations.
12. Improved Efficiency
Outsourcing your bookkeeping function ensures that you won’t need to worry about staff vacations or unexpected absences halting your bookkeeping operations. Your outsourced team also helps you better understand budgeting concerns and business performance in a timely, efficient and reliable manner.