7 Reasons Small Businesses Should Outsource Their Bookkeeping Services
Bookkeeping Services and Bookkeeping Services For Small Business
Being a small business owner comes with a unique set of challenges. Free up your time and brain power by outsourcing your bookkeeping services as soon as possible. Here are 7 important reasons small businesses should outsource their bookkeeping services.
Running a small business can sometimes be a particularly brutal form of masochism. As the owner of a small business, you're most likely working around the clock doing a thousand different jobs.
This is because small businesses are typically understaffed - the average small business has around 20 employees and many have no employees at all - and don't have the money or access to the resources larger businesses do.
Being hamstrung like this forces owners and employees alike to wear many hats. You may be the owner, floor manager, and bookkeeper of a coffee shop, making it difficult to keep up with the demands of either position.
Luckily, there are resources out there that can help lighten your load. If you own a small business, you should outsource your bookkeeping services. Below, we'll give you 7 reasons why.
1. The Benefits of Expertise
When you opened your business, you probably didn't envision yourself or the part-time cashier managing your bookkeeping duties. Chances are, you have little knowledge on how to do it, and had no plans of being an expert on it.
This is why a third-party bookkeeping service is essential. You'll be working with qualified professionals who sole purpose is to organize your financial records and make your life easier. When tax seasons rolls around, you'll be grateful you hired someone that knows their way around audits, tax returns, and government remittances.
2. Power in Numbers
When you outsource your bookkeeping you don't just enlist the expertise of one person. You get a team of qualified number-crunchers on your side. Because of this, no one person is overworked and underpaid. This leads to fewer errors in your record keeping.
Fewer errors can then lead to getting more money back from the government on your tax returns or prevent you from sending too much to the IRS in the first place.
When it comes to math, it's always better to have multiple eyes on a problem.
If you're sick of doing your own bookkeeping, the usual recourse is to hire someone. But if you're a cash-strapped small business this is sometimes unfeasible. The average bookkeeper's salary is around $40,000 a year, and in metropolitan areas, it climbs to $75,000.
Most small businesses can't pay that kind of money without severely eating into their bottom lines.
Luckily, outsourced bookkeeping services are much cheaper. With services like ours, you only pay for what you need, when you need it. You don't have to keep an accountant on retainer or pay for a new employee's health benefits.
4. They'll Scale with You
If all goes well, your business' financial needs will grow too big for one person to handle anyway. That accountant you're paying $65,000 a year just won't be able to get the job done.
But a company that specializes in bookkeeping can grow with you. It doesn't matter if you grow from a small brick-and-mortar store to an enormous corporation. Like we've said, you'll have a team of accountants ready to carry out whatever financial services your business needs.
On top of that, just using a third-party accounting service in the first place will give you more room to grow. The salary you would've been paying to a full-time bookkeeper can now go to expanding your business. You can put it towards developing a new product, or opening up a new store.
5. Increased Focus
As a business owner, getting bogged down in the numbers is probably the last thing you want to deal with. It's time-consuming, difficult, and boring.
As the face of a company, you'd most likely rather be using your time to improve upon the things that your customers care about. The time and money you would have spent crunching numbers can now be put towards improving your product or service.
You can work focus on employee training, improve your customer service, or develop a new arm of your business. An outsourced bookkeeping service gives you the ability to focus on what matters to you.
6. Better Tools
There are a lot of tools and software programs out there that can make your bookkeeping much easier, even if you're doing it by yourself. The problem, however, is that they're typically too cost-prohibitive to be affordable for the average small business owner.
More importantly, you need to save that money to upgrade the tools you need for your actual business. If you're opening a coffee shop, you're already going to be spending $10,000-$30,000 on an espresso machine. You don't want to have to make a similar investment in boring accounting tools.
With an outsourced bookkeeping service, however, they've already invested in the best accounting tools so you don't have to. Indirectly, you're getting them for free.
With these tools, an accounting service will be able to provide the best service, allowing your business to keep as much of its own money as possible.
7. Less Stress
At the end of the day, having less stress is possibly the biggest benefit of outsourcing your bookkeeping needs. To successfully run a business, you need to be clear-headed and well-rested. It's extremely difficult to reach that mental state if you're juggling a thousand things at once.
If your work responsibilities are so numerous that they're keeping you away from family dinners or your kids' soccer games, and your finances keep you tossing and turning at night, you need a bookkeeping service.
By outsourcing your accounting needs, you'll never have to worry about your finances or your struggles with the IRS, and you'll be able to do what you love in life again.
Want to Learn More About Bookkeeping Services?
Hopefully, this article has made you privy to the kinds of benefits outsourced bookkeeping services can provide. It all comes down to saving you time, stress, and money.
If you could use some relief in all three of those categories and want to learn more about how bookkeeping services work, consider contacting us for a free consultation. Our services can lighten the load for you and your business.