Owning and running a successful business can be a lifelong dream but it can also be an onerous task. Bookkeeping and running the financial side of your business is not always an intrinsic skill for every small business owner. So why do you leave the financial side of the business in unskilled hands? If we’re right and this is you, you should consider enlisting the help of a professional to set your business up for success.
Here’s a look at some of the benefits of and considerations involved with hiring an external bookkeeping service for your business.
When you spend less time on tasks like bookkeeping, you’ll enjoy more time to focus on your clients, customers and other areas of success. Besides, the bookkeeping you do may take you much longer than it would a professional. Not only does this make it ‘too costly’ for you to do it yourself, it also means you’re taking time away from other parts of the business at which you’re more successful.
Get an Unbiased Financial Opinion
An external bookkeeping service has nothing to do with your business. Their goal is to give you a clear and unbiased insight of your business’s financial position as there is no emotional attachment to your business. A bookkeeping service need only do the accounting work required to keep your business operating and show you its financial strengths and weaknesses.
Avoid Conflict of Interest
It can be risky for some businesses like partnerships to entrust the accounting to one of the owners. An owner might find him/herself having to make a choice between what is best for himself and what is best for the company. This isn’t to say that he wouldn’t put the business first, but others within the company might wonder about his intentions if something should go wrong.
Using an independent, outside Company avoids this pitfall and can boost confidence knowing that all accounting statements are true, accurate and without bias.
Lower Your Costs
One of the key components of running any business is keeping a firm grasp on the overall costs incurred. A business owner’s goal is to reduce the total costs of his operation, and one way to do this is to control the wages and salaries of workers often by employing fewer people.
A business can run without a bookkeeper on staff if the business owners collect financial information and hand the necessary documentation over to the external bookkeeper for accounting purposes. The cost of outsourcing your accounting is typically significantly less than employing a full-time bookkeeper.
Get Critical Information
Every month, your bookkeeper prepares a balance sheet and an income statement. These financial documents give you the essential information that you need to run your business on a monthly basis and easily file your taxes.
Pay Less Taxes
Don’t you like the sound of this? If you are not a bookkeeper, then let someone who is help with this side of the business. They have lots of knowledge about which business expenses are deductible. They have knowledge of legislation that is important to you and can frequently find money for you when they file your tax return.
Focus on the Strengths of Your Business
Focusing on the aspects of the business you do well is not only smart for your business, it’s also smart for the financial side of your business. It’s that simple.
Keep Your Privacy
In the case of bookkeeping, there are plenty of reasons why you’d want to outsource the service to a professional firm, but don’t overlook the issue of privacy. Because things like payroll and employee financial information is very sensitive, many companies do not want to share those details with internal staff members. Outsourcing bookkeeping, payroll, or accounting from your company, you can reduce the risk of sensitive information falling into the wrong hands.