How Outsourcing Your Bookkeeping Brings Instant Benefits to Your Business
For many business owners in Hawaii doing your own bookkeeping is an option that can be very attractive. When trying to get things off the ground, saving every cent possible isn’t just useful, it can even be necessary.
However, that should be, at most, a temporary pursuit.
At a certain point the costs of your handling it, which go beyond just money, will greatly outweigh any benefit you’re getting, to the point of even dragging down your business.
Why An Outsourced Bookkeeping Service Might Be Right For Your Business
Still unsure? Here’s a few reasons why outsourcing your bookkeeping could be the right decision for you and your business.
- Your Time
Doing your own bookkeeping is a reasonable choice when you have more time than money, a condition most businesses and business owners have when getting started.
Over time, however, the hours you dedicate to the task will start taking the place of profit-producing activities. This is inevitable in any company that reaches a certain level of success, including yours.
Think about it. Where is YOUR time best spent – doing the work that brings in the money or pausing that crucial lifeline of your business to handle the books?
Could you produce more in cash-flow in the time you now spend on your bookkeeping than it costs to outsource to a professional bookkeeper? The answer is almost certainly ‘Yes‘. So why are you doing it?
- Costly Mistakes
Bookkeeping can seem deceptively easy, especially at first, when you don’t have a lot to enter. Get past that point, though, and you’re now in a very different world of record keeping and classification.
Without the familiarity and knowledge of tax classifications alone it is very easy to classify an item incorrectly. Even a few of those add up. Quickly. How?
By costing you both money in potential fines & owed taxes caused by a small mistake here and there. It also costs in your time, spent reviewing & redoing your work.
After all, some expenses and entries are 100% deductible, some 50%. Others are taxed fully. Enter one wrong and you end up either paying taxes you don’t need to or owing even more, taking away cash you could have at hand.
Or worse, you completely miss filing and paying taxes you owe, so you end up owing not just that, but interest and fines on top, which can double the actual bill. Or more.
- Find Your Hidden Business Potential & Profits
One issue that comes up constantly with new clients are the missed opportunities we find sitting right there in their financials.
Not just new or unmined profit streams, but actual earnings that were there for the taking, yet they couldn’t see.
A recent local client, for example, came in with books that were chaotic – at best.
Once cleaned up, it became clear that his cash-flow was strong enough for him to actually buy another business in his area. He had dreamed for years of doing this, but believed it just wasn’t possible.
His books told us it was. But only after a professional bookkeeper put them in order and connected the dots.
In addition, we haven’t even mentioned the fact that double-journal entry accounting is needed for your bookkeeping to be fully effective.
If you have no idea what that is, don’t feel bad. You’ve got a lot of company – and that’s exactly why there are bookkeeping services.
When Your Bookkeeping is in Order, So is Your Business
The real point is that your books can become complicated quickly, hiding the true state of your business – good or bad – and costing you time and money that they shouldn’t.
Your books should be not just a clear picture of your company’s health, but also a guide forward to greater success and growth. Are your books living up to that?
Get a Bookkeeper in Hawaii You Can Trust to Protect Your Business
Contact us today for a consultation about not just putting your books in order, but how our bookkeeping and business services can lead to both the growth and the firm financial foundation you need to flourish in Hawaii.