You might be worried about accurate bookkeeping if you’ve started a new business. You might realize that you don’t have time to do the books even if you’re already running a successful enterprise. If either scenario is true, you should consider outsourcing your bookkeeping.
We’ll discuss everything you need to know about when, why, and how to outsource your bookkeeping.
If you’re starting a new business, you might opt for doing your bookkeeping independently. However, you may worry about making costly mistakes. You should outsource your bookkeeping if that’s lingering on your mind. You can be sure your bookkeeping is accurate, your finances are in order, and devote yourself to other aspects of your business.
If you’re already running a business and you’ve been doing the books, you might realize that you can’t do it all on your own anymore. This realization may occur because your business has grown, and achieving everything yourself starts to take a toll. Outsourcing your bookkeeping can make your life easier, save valuable time, and allow you to focus on expanding your business even more.
Outsourcing your bookkeeping can be beneficial for several reasons:
It removes the burden from you and your employees. By outsourcing, you don’t have to waste time recruiting and training new employees. Leave your books in the hands of professionals who already know how to manage your business successfully. If you already have employees for bookkeeping, but the workload is very high, you can hire a bookkeeping service to work alongside them.
You get professional help. Letting someone else manage your books isn’t easy. That’s why you should always vet the person or company before hiring them. Ensure that they are professional, experienced, and reliable. Bookkeepers, with their knowledge, will not only manage your books successfully, but they’ll help you grow and offer advice for the future.
It lets you focus on core operations. By allowing someone else to manage your bookkeeping, you can focus on core operations within your business, such as marketing, managing your team, and improving your service. You and your managers will have more time to dedicate to processes directly related to profitability.
It saves money. Besides avoiding the costs of recruiting and training new employees, outsourcing your bookkeeping allows you to save on office space and new equipment. If you outsource the bookkeeping, you only pay for the work done, which will be cheaper in the long run.
It allows you to get the best technology. Due to harsh competition, bookkeepers and bookkeeping companies are constantly implementing new software in their work. You probably don’t want to spend thousands of dollars on a program just as an individual. Your business can benefit from the best tools available by outsourcing bookkeeping. Outsourcing will reduce mistakes, you’ll be relieved to know your books are in safe hands, and the use of advanced technology will make tax filing a breeze.
It helps you make better decisions for your company. Having accurate numbers helps you plan for the future and make more informed financial decisions for your business. You can decide to invest in your business even more or cut back on some expenses by correctly checking out your numbers.
If you decide to outsource your bookkeeping, decide which option works best for your situation: local bookkeeping, virtual bookkeeping, or hiring an employee.
A local bookkeeper is an individual or a company that operates geographically near your business. One of the advantages of this option is the potential of meeting with your bookkeeper in person, which allows you to ask questions and receive quick feedback.
Hiring a local bookkeeper is an excellent choice if you like doing your books the old-fashioned way and keeping physical records.
You can hire a freelancer or a local bookkeeping firm. A freelancer is an individual that works with you one-on-one. Depending on the arrangement, a freelancer can come to your office, work online, or both. A freelancer’s knowledge and experience vary, so you might want to look for recommendations or meet with several candidates before making a decision.
If you’re thinking about hiring a local bookkeeping firm, keep in mind that it will probably cost more than hiring a freelancer. However, hiring a firm has its benefits. First of all, you’re sure that your business is in the hands of professionals. You also don’t have to worry if one of the bookkeepers takes a leave of absence or goes on a vacation. There won’t be any gaps in handling your books.
Whether you decide to go with a freelancer or a bookkeeping firm, it’s vital to note that they’ll be working outside of your business. If you worry about your information’s security, ensure the people you hire are reliable and experienced in the field. Never give anyone access to your treasury functions. You should remain the only authority for signing documents and statements, making payments, and handling investments.
Virtual bookkeeping is when someone manages your books online, paper-free. There are various online bookkeeping services you can hire for this purpose. This is an excellent option if you’re comfortable with internet services, online banking, and different apps. If you don’t have time to meet with your bookkeeper in person, you’ll find working with them digitally to be much easier and quicker.
Having virtual bookkeeping enables you to access your files at any time since they are stored on the cloud. Online bookkeeping services often invest in the latest programs to beat the competition. This reduces the possibility of making mistakes and ensures your business is running smoothly.
Another advantage of hiring a virtual bookkeeping firm is paying a monthly rate instead of paying hourly. This allows you to plan your expenses and investments.
If you’re worried about the security of your documents with the online nature of the service, the virtual bookkeeping services connect you with experts using a secure network. Find a service that downloads your information through online banking and merchant processors. This saves you from sending in financial records and receipts.
Depending on the package you choose, a virtual bookkeeping firm can help you with your taxes and ensure everything goes smoothly.
You might want to hire an employee dedicated to bookkeeping if your business has grown so much that it needs constant support. This is the most expensive option since you’ll have to provide a salary and pay taxes on their behalf.
Although it might seem expensive, there are numerous benefits of having an in-house employee. You’ll have a reliable employee whom you can train and direct towards your goals. You’ll also always have insight into the financial health of your business while being able to control and adjust throughout the process.
You can also opt for hiring a part-time bookkeeper. As your business grows, you can increase the employee’s hours. You can also employ this part-time bookkeeper and give them other administrative tasks to progress into a full-time position.
In-house bookkeeping is recommended for companies with more than 30 employees or more than $1 million in revenue.
Choosing the right outsourcing option is entirely up to you and your preferences. If you like meeting with your bookkeeper in person and discussing potential problems, you should opt for local bookkeeping. If you’re comfortable using technology and prefer completing tasks over the phone, choose virtual bookkeeping. If your business has outgrown you and you think there’s enough work for hiring an employee, go with a new in-house employee.
Each option has its advantages and drawbacks, but it’s up to you to decide which one works best for your business.
Since we live in a fast-paced world, most entrepreneurs opt for virtual bookkeeping services. Swyft Books connects you to professional bookkeepers who can help you maximize the potential of your business. The service uses a secure network, so you don’t have to worry about the safety of your information.
Get your free trial, and you won’t have to worry about bookkeeping decisions ever again.