As a small business owner, it’s not uncommon for your day to go in ten different directions. Between managing employees, paying bills, and long-term decisions like analyzing costs, there’s simply not enough time in the day to handle everything involved in running a business. If your goal is to grow your business, then it’s time to explore the benefits of outsourcing bookkeeping.
Bookkeeping is a critical function for the growth of any business. It’s a tedious, monotonous task that you can hire somebody to handle in-house. However, one quick look at the benefits of outsourcing bookkeeping will show you that it’s about a lot more than simply typing in a few numbers.
Who needs bookkeeping services? The short answer: all businesses.
Online bookkeeping has changed the way business owners approach this often-dreaded task. Instead of hiring an in-house bookkeeper, or even accountant outsourcing, virtual bookkeeping can take your business to the next level—without any strings attached.
The benefits of outsourcing bookkeeping are numerous—and you won’t miss a thing, either. In fact, you may even discover new, previously untapped resources at your disposal.
One of the most obvious (and important) benefits of outsourcing bookkeeping is that it helps you save money. When you take on a bookkeeper, you’re paying them an hourly wage or annual salary. Naturally, keeping payroll costs low should be a priority.
But, hiring an employee involves more costs than simply payroll. Additionally, you’ll also have to factor in the other costs of hiring an employee, like:
Outsourcing this essential task can give your business more than you’d get with a traditional in-house bookkeeper.
Rather than putting your payroll funds toward support staff, spend more on employees that support the core of your business. If you have a construction company, simplify jobs by hiring additional crew members. Or, if you own a restaurant, hire more cooks to decrease wait times and improve your experience.
Utilizing online accounting and bookkeeping services gives you the freedom to spend wisely while growing your business.
It’s no secret that logging, analyzing and reconciling payments and other financial records takes time out of your day. One of the benefits of a virtual bookkeeper is that you can buy your time back—at a much lower cost than your lost opportunities, too.
By outsourcing this tedious, time-consuming task, you can attend to the things that require your attention. You’ll have more free time to improve customer service, evaluate processes, and overall, improve operations.
Without requiring work on your end, you’ll also free yourself of piles of physical paperwork, as most bookkeeping and accounting services for small businesses utilize online portals.
Modern bookkeeping companies don’t operate on pen and paper. Instead, they streamline your process by utilizing online portals that handle everything, opening the door to new capabilities.
The portal’s functionality itself varies based on bookkeeping price packages, but the bottom line is simple. Because it’s based in the cloud, you and the bookkeeping company can access your records at any time.
This streamlined cross-collaboration means they can instantly input your expenses and/or income. It also allows you to instantly view your finances, with new transactions included, at the touch of a button.
Centralizing this information can help keep things organized. Anyone in your organization can view or alter this data—while the bookkeepers handle the day-to-day.
When you hire an in-house bookkeeper, you accept a certain margin of error while waiting for them to settle in. Before the numbers can be perfect (or even reliable), bookkeepers need an adjustment period. Bookkeeping service providers help alleviate that challenge by promising maximized efficiency on day 1.
When you take advantage of virtual bookkeeping firm services, you’ll have an expert team on your side that’s trained to handle everything.
Virtual bookkeepers utilize an automated system that seamlessly tracks your finances, with the expert oversight to resolve any issues immediately.
Virtual bookkeepers do a lot more than just keep the books and track expenses. As you explore the benefits of outsourcing bookkeeping, you’ll learn that’s only the tip of the iceberg.
When you utilize their full potential, virtual bookkeepers bring a lot more to the table. You can view the financial status of your business as money moves in and out. Whether you’re in crisis or growth mode, these insights can go a long way.
Expenses and income are generally sorted, giving you more detailed insight into your business.
Beyond the simplicity of data entry, another benefit of outsourcing bookkeeping is the financial information that comes with it.
At the click of a button, you can access financial reports that give you more specific information about your business. You can view your cash flow history, profits and losses, or a balance sheet.
Because virtual bookkeepers meticulously record this information, viewing it is quick and easy. You can easily share this information with partners, employees, legal counsel and financial advisors. As your business grows, quantitative insights like this are invaluable.
The best business growth decisions are backed by your instincts and gut—but having the numbers on your side helps too. With financial intelligence about your business, you can make better, more informed decisions.
Virtual bookkeeping platforms give you the information you need to determine which customers or clients you should invest more money in. You may also be able to learn which to stop marketing to.
Similarly, these reports can help you analyze when you need (and can afford new employees). Once you do, you can calculate how much you can afford to pay them.
Why make tax season stressful when it can be simple? Among the many other benefits of outsourcing bookkeeping, simplified tax preparation and full compliance will take unnecessary stress off your shoulders.
Instead of scrambling to get your numbers in order, virtual bookkeepers will help you prepare for tax season as time goes by. Once the time comes, they’ll be able to help you file immediately, while taking advantage of potential tax deductions.
Naturally, not all bookkeeping service providers and packages offer the same services. But, that doesn’t mean you’re locked into a cut-and-dry agreement, either.
As you double your annual sales, you may find that your current bookkeeping package just isn’t cutting it. By upgrading, you can give your business additional capabilities that can take you to the next level!
At National, we’re invested in helping your business grow. Our industry-leading packages offer all the benefits of outsourcing bookkeeping, and take care of the entire process for you!
Get started saving time and money in your business by signing up now!
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Matt Carrigan is the Content Writer at National Business Capital & Services. He loves spending every day creating content to educate business owners across every industry about business growth strategies, and how they can access the funding they need!