How well can you manage your financial reports on your own? Are you aware of all the intricacies of bookkeeping and accounting? These things are important because accurate financial statements determine the duration of your business success.
One ongoing trend is that many business owners maintain their financial records on their own because they don’t want to spend money on professional accounting services. They begin to consider getting expert help only when they are already drowning in the sea of incorrect reports, messed up reconciliations, or are facing an audit.
You may need to outsource bookkeeping and accounting for various reasons like being overwhelmed by the amount of paperwork, lacking the resources to hire an accountant, or simply needing professional assistance. Whether you decide to hire or outsource – you will be very impressed by how much you will benefit from not doing everything by yourself.
Here are three reasons to outsource bookkeeping and accounting.
Cut the time and costs related to hiring a new employee
Hiring always means a lot of work: from uploading a vacancy online to interviewing people and processing the new employee’s paperwork. You will need to review numerous resumes and pay attention to the smallest detail. In fact, you will look not only for a competent specialist but also for a personality that will match your business style. Keeping that in mind, does it make sense to push yourself through the hiring process if you have never done that before and it might bring you more stress than you are looking to avoid? If your answer is no, accounting outsourcing might be the best option for you at the moment.
Get access to the team of professionals
Once you work with an accounting firm, you can rely on qualified professionals who provide bookkeeping and accounting services and manage your finances for you. By finding an accounting practice that suits you, you can rest assured that the job will be done right, day after day. Besides, if you ever need advice before making an important financial decision or investment, you will always have an expert by your side.
Grow your business and increase productivity
If you find yourself doing your own bookkeeping out of a sense of having to do it, you could probably make better use of this time. If you delegate it to other employees, who aren’t accounting professionals, soon they might experience burnout from doing the day-to-day work they don’t like or understand. For you as a business owner, it’s important to prioritize, and if you spend more time trying to understand complicated paperwork than thinking about your business growth, it’s probably the right moment for outsourcing accounting and bookkeeping. You can use that time to focus on development strategies, improving your cash flow, increasing client engagement, working on marketing strategies, and other business activities that can benefit from your expertise.
Let everyone do what they do best.
Look in the direction of online accounting systems
If you are still unsure about reaching out to a firm, you can try using online bookkeeping and accounting services. They fit small and large businesses and can perform with 100% accuracy. The biggest advantage of cloud software is access to data from anywhere in the world, from any device, and at any time of the day or night.
Probably, the main difference is that from time to time you will have to check how the system is performing, and for that, there is a learning curve to go through. Accounting systems have a wide-ranging functionality, but as soon as you set everything up, all that is left for you is to produce your financial statements and other reports in a couple of clicks.
For example, one of the applications you can use is Synder. It will become a perfect bookkeeping assistant for you. The app will connect your accounting platform with your online payment processors or e-commerce platforms to synchronize your transactions thoroughly and consistently. It doesn’t matter how many transactions you have, Synder can record them all with such details as taxes, locations, discounts, shipping information, and even will help keep track of inventory. And when the time comes to do the bank reconciliation, you will see that not a single dollar has gone missing from your books.
Cloud accounting software tends to have affordable and flexible pricing and normally you can choose to be charged monthly or yearly. Most providers offer a free trial to test the solution before making any sort of commitment or cut a free version of an app and you have to pay to try the full service.
When should I think of outsourcing my accounting and bookkeeping?
Here are some cases in which you may need to refer to outsourcing:
- You have a small business and no need for a full-time employee but can benefit from the advice of someone with accounting and bookkeeping expertise.
- An urgent need to get help with reports or reconciliation due to the looming audit, tax season, or your previous bookkeeper being unavailable.
- You have been looking for a staff accountant for too long and couldn’t find one because of the related costs.
- Accounting has become a general pain point in your workflow and you are looking for expert assistance.
Outsourcing finance reporting is more affordable today than ever before and can bring great benefits to your business. It’s important to remember, nevertheless, that working with your own bookkeeper or accountant might be necessary in case you need a lot of customized reports and individual advice that comes with full outsourced accounting services. As a rule, outsourced bookkeeping and accounting tends to focus on the general picture, and does not provide much legroom for individual requests outside of the normal routine.
Whichever way you choose to go, proper accounting can change the game for your business completely by making your plans more strategic and cost-effective. It helps to have peace of mind knowing that you are protected from fines, late tax payments, accounts receivable management issues, etc. with a team of professionals you can lean on.