No matter the size of your business, bookkeeping is a must; not only for legal reasons, but also for keeping the finances of your company clear and easy to handle. Tracking your income and expenses is incredibly important, but knowing where to start can be overwhelming.
The good news is that, these days, it’s incredibly easy to outsource your accounting and bookkeeping to a freelancer or small business consultant. Here are the top seven reasons you should hire a service to take care of your business’s bookkeeping needs.
Having an expert on your team means that your accounts are always in order, and you don’t have to worry about doing things the right way—you always know it’s taken care of. When tax season comes around, you’ll thank yourself for making sure it’s done correctly.
The best part of having your bookkeeping done right is the data you get afterward. Your monthly financials, such as your monthly balance sheet and income statement, are incredibly helpful when figuring out business strategy for the future.
Financial reports are needed to apply and be approved for a small business loan, but if you leave all your bank reconciliation until you need a loan, you’ll be in a tight spot. Categorizing a purchase is much easier a week after it’s been made than nine months later when you’ve completely forgotten what it was.
Lastly, accountants often charge for time they assume will have to spend making sense of your mess—if you have everything already organized, you can negotiate down your accounting costs.
Better Access To Data
Most outsourced bookkeeping services also offer some sort of cloud-based software with which to keep your books in order. This software makes things incredibly easy, and lets you take a look at your accounts anywhere you have your phone with you.
Cloud-based bookkeeping means that you can have your records and your bookkeeping professionals at your fingertips at any time, any place. Even if you’re thousands of miles away from your business, in a completely different time zone, you can still see everything you’ll ever need to know about your financials.
This is extremely convenient if you suddenly need to get a hold of your bookkeeper, or if you need to let one of your employees know the state of your business’s financial standings. The cloud makes it so much easier to be in contact and share information with everyone involved.
A service option that many bookkeepers with software offer is the ability to upload receipts from anywhere. Get rid of that shoebox full of wrinkled receipts and snap a picture on the app with your phone, then be done with it forever.
Cheaper Than A Full-Time Employee
Outsourcing means that you don’t have to pay an in-house accountant exorbitant amounts for something that doesn’t need to take very long. Something that takes you a long time wouldn’t take a seasoned professional much time at all.
If you have a small business, chances are you don’t need an employee whose only job is to keep your books and accounts. If you outsource this service, you only pay exactly what you need to for the few hours of bookkeeping you need.
Not to mention, you no longer have to pay for advertising and interviewing a position, or salary and benefits for an in-house bookkeeping employee. It’s much more cost-efficient to pay a small monthly fee to get bookkeeping done than to pay wages for an employee you don’t need.
Getting it done professionally also means that you don’t have to chance messing it up yourself and having to pay nasty fees to the IRS. Incorrectly processing payroll can cost you upwards of a thousand dollars, so make sure it’s done right the first time.
More Secure Than Your Office
People may have concerns that a remote bookkeeper is less secure with their financial information. The truth is, it’s probably more secure than any other bookkeeping solution you would have used.
If you tried keeping track of your bookkeeping on spreadsheets, for example, there is no encryption whatsoever of your financial data. The computers in your small business office are probably far less secure than they could be.
A business devoted entirely to doing financials for other companies will obviously have more at stake with keeping things protected than say, a small restaurant or printing office. They will be much better equipped than your office in nine cases out of ten.
For one thing, bookkeeping service providers make it so only the people who need access to your data get that access. In your office, any random employee could likely walk up to your open computer and find anything they wanted to see. Everyone with access to your information at this outsourced bookkeeping company will be an actual bookkeeper, doing work for your company.
The biggest issue for this sort of data is probably online security, and these service providers will be well equipped for this risk as well. They’ll have both at-rest and in-flight encryption ready for your data, meaning it’s protected not only when it’s sitting on their computers, but also when it’s moving between computers so you can both see it.
Even the physical servers where your information is stored will be better protected than at your office. When companies are in charge of servers with sensitive information, they take great care to be sure it stays secure. Which would you prefer: an area protected by biometric locks and security guards, or a hard drive sitting in the drawer of your desk?
Better Customer Service
One plus of going through an outsourced bookkeeping company is the customer service involved. You can generally expect a better interpersonal experience with a company than with an individual employee.
A company you’ve hired to keep your financials in order will want to keep your business. This means that they have likely trained their bookkeepers in customer service, or possibly even hired a separate employee to deal with all of your requests.
Compare this to an old employee you’ve hired on part-time to do your bookkeeping. While he may want to keep his job, he probably feels much more leeway in not offering a bright outlook when interacting with you. Any difficulties with your books may lead him to feel dissatisfaction with your business, and in turn, grumpiness with you.
Your Time Is Worth A Lot
One of the reasons you’re looking into outsourced bookkeeping services in the first place is likely time. You’ve probably discovered how much of a hassle and time-suck bookkeeping can be when you do it all yourself, and you want to free up that time.
That is one of the biggest advantages of outsourcing your financials. Letting professionals take care of your bookkeeping means that you now have hours of extra time to focus on what you really need to.
As the owner of your small business, you have bigger fish to fry than categorizing purchases. You’re the most important person in your company, and you should spend time where it matters: development, improvement, and growth.
No More Hiring Headaches
One problem with hiring an in-house bookkeeper or accountant is that they’re only human. Humans get sick and injured, take vacations, and quit without notice.
If your in-house employee suddenly falls ill or has to quit, you’re left without someone to take care of your financials. How do you pick up the pieces?
When you outsource your bookkeeping, you don’t have to worry. A company doesn’t get sick or go on a week-long vacation to Disneyland.
With a remote bookkeeping service, there isn’t the problem of finding a replacement if an employee quits. The company likely has an entire team ready or already working on your case. If one of them leaves, someone else seamlessly takes their place, and you probably wouldn’t ever even know anything changed.
A large pro of outsourcing your bookkeeping is knowing that, no matter what, you’re taken care of. Get rid of your worries, and get an outsourced team to take care of your business books for you.