When you outsource your bookkeeping, you allow a third-party bookkeeping or accounting service to keep track of your business finances and manage the bookkeeping for you. In this post we will discuss five benefits to outsourcing your bookkeeping and how it can help improve your business.
1. Expertise
There are bookkeepers and accountants that are trained to handle financial transactions for small businesses using accounting software such as QuickBooks Online or Xero. If you outsource your bookkeeping, these professionals invest time and effort solving complex financial and bookkeeping problems so that you don’t have to. In addition, having the expertise of a bookkeeper or accountant minimizes errors and can help you have a deeper understanding of how your business is doing through accurate financial reports.
2. Time Efficiency
Outsourcing your bookkeeping also gives you more time to invest in your business. As mentioned earlier, you won’t need to learn how to solve complex bookkeeping issues or figure out how to navigate the accounting software. All the transaction categorization, reconciling, and financial statements will be taken care of by a professional. This can allow you to use that extra time to grow your business or do other important tasks that you want to accomplish.
3. Saving Money
The average salary of a full-time bookkeeper in the United States is around $40,000 to $50,000 per year. On top of the base salary, you would have to factor in bonuses, insurance, vacation time and paid time off. If you outsource your bookkeeping to a third-party service, you don’t have to hire a full-time bookkeeper. The costs would be a lot less and you wouldn’t have to deal with the hassle of hiring and training an employee since your bookkeeping would be handled by well-trained experts.
4. Preparation for Tax Season
Outsourcing your bookkeeping also allows for all financial records and statements to be available during tax season to give to the tax preparer. You won’t have to worry about sorting through numerous financial transactions or finishing up reconciliations for tax season since everything is already being handled by a professional.
5. Flexibility
If your business grows and you suddenly have more transactions, bills from vendors that need to be tracked, or invoices that need to be sent to customers, third party bookkeeping and accounting services are prepared to handle this. You wouldn’t have to go about hiring a new employee or take the time to do it yourself every time the workload increases.
Outsourcing your bookkeeping is a great choice if you want to create long-term financial success and growth in your business while saving time and money.
