Wondering if you need to outsource bookkeeping services?
If you’re like 40% of small business owners, handling the bookkeeping and taxes is the worst thing about owning a business. The cost, complexity, and confusing regulations are among the biggest issues.
Outsourcing bookkeeping eliminates many of those issues.
Keep reading to learn five benefits of outsourcing.
1. Control Costs
If you do the books yourself, you’ll spend a lot of your time doing the work. If you calculate an hourly rate for yourself and multiply it by how long you spend on bookkeeping, you can calculate the costs.
When bookkeeping becomes too much for you to handle, you might consider hiring an in-house bookkeeper. While this gives you a dedicated service, you also have lots of costs associated with hiring an employee.
One survey shows it costs $4,129 on average to hire a new employee.
On top of the salary, you also have the cost of benefits to cover when you hire an employee.
With outsourcing, you only pay for the bookkeeping work that gets completed. It’s often more cost-effective to pay for the service than it is to hire a full-time bookkeeper.
2. Improve Accuracy
How confident are you in the accuracy of your books? Little mistakes can cost you financially. They can make it difficult to run your business efficiently and result in penalties.
Accuracy is also important on tax returns. You might find yourself owing more or facing penalties if you don’t do your taxes correctly.
Being accurate is more challenging because of changing regulations and tax laws. When you’re running your business, it’s tough to also keep up with the changing regulations.
When you outsource, the bookkeeping company keeps up with the regulations for you. They ensure your books are accurate and meet changing requirements.
3. Save Time
The average small business owner takes on many roles. Finding the time for everything can be challenging.
Bookkeeping can be a major time drain if you’re doing it yourself. You’re likely slower at doing the books than a professional bookkeeper since it’s not your area of expertise.
If you put off bookkeeping, it takes even longer to get caught up.
Outsourcing means you don’t have to take the time to do the books yourself. You’re free to handle the core business activities that can make you more money.
4. Get Professional Advice
Even if you feel comfortable handling the bookkeeping yourself, you might not know how to interpret those numbers. If your financial situation changes or you come up against something new, you don’t have a source of answers available.
When you outsource, you have professional bookkeepers there to help you understand the numbers. They can offer bookkeeping advice, answer questions, and clarify any confusion.
5. Scale Easily
When your business grows, your bookkeeping needs also increase. If you’re handling the work yourself, that means more time from you. If you have a bookkeeper on staff, you might need to hire someone else, which takes time and more money.
Outsourcing makes scaling easy. The bookkeeping service can keep up with increased demands with no more effort required from you.
Start to Outsource Bookkeeping Services
When you outsource bookkeeping services, you benefit in many ways. You get accurate books with less work on your plate.
Contact us for more information if you’re ready to outsource your bookkeeping.