How Outsourcing Your Bookkeeping Can Bring Instant Benefits to Your Business
For many business owners doing their 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.
Still unsure about this? 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 the more 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 begin taking the place of profit-producing activities. This is inevitable in any company that reaches a reasonable level of success.
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?
In the time you spend on the bookkeeping do you produce more in cashflow than it costs to outsource to a professional bookkeeper? The answer is almost certainly ‘Yes’.
- Costly Mistakes
Bookkeeping can seem deceptively especially when you don’t have a lot to enter. Get past that point and you enter a very different world of record keeping and classification.
Without a familiarity and knowledge of tax classifications it is very easy to classify an item incorrectly. Even a few of those add up. Quickly.
Some expenses and entries are 100% deductible, some 50%. Others are taxed fully. Enter one wrong and you end up paying taxes you didn’t need to, taking away cash you could have had at hand.
Or worse, you miss 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.
- Hidden 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 client, for example, came in with books that were chaotic – at best.
Once cleaned up, it became clear that his cashflow was strong enough for him to actually buy another business in his area. He had dreamt for years of doing this, but always thought it just wasn’t possible.
His books told us it was. But only after a professional bookkeeper put them in order.
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.
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 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 firm financial foundation you need to flourish.