One of the most important assets to consider for any small to medium-sized business is to have good accounting procedures in order to be successful. However, the legwork for bookkeeping is more often than not, a full-time job. There are many small businesses that do not have the right expertise and manpower to perform the proper bookkeeping with its daily operations.
Did you know that nearly 40% of all large business in the US and Europe now prefer to outsource bookkeeping? It isn’t just a trend but it’s also a cost-effective way to keep up with the high demands of operating a business in contrary to the traditional in-house bookkeeping.
If you haven’t tried outsourcing bookkeeping yet, here are the good reasons why you need to:
1. Lower costs
Outsourcing bookkeeping from countries with lower labor costs compared to hiring an in-house bookkeeping professional is a way to save tens of thousands of dollars. For example, you can expect to see a reduction of 20% to 40% cost if you choose to outsource the bookkeeping. It is basically giving value to your money with the same quality of work but in just a fraction of expense from doing an in-house, bookkeeping.
2. Less management headaches
Having in-house bookkeeping would entail you to do training, hiring, directing or even firing which could take a toll on you and leave you disappointed. It would just exhaust your resources such as money, effort and most especially time. With outsourcing a bookkeeper, you will free yourself from the burden of managing in-house bookkeepers.
3. No hardware /software worries
As the popular saying goes, the things that you own end up owning you. With in-house bookkeeping, you have to keep a track of computers, software licenses and etc. Apart from the cost, you would also have to constantly troubleshoot your systems or update software.
4. Increase in-house efficiency
Outsourcing bookkeeping can give you and your team the spare time and extra energy that you so badly need. With the burden of bookkeeping out of your hands, you can focus on your sales /marketing team or any other area of your business that needs attention.
5. Do the work that you love
You surely did not go into business for the love of managing books. If doing bookkeeping is robbing you and your staff of their passion and de-motivating them, then its time you outsourced. Outsourcing bookkeeping can help you stay motivated by giving you the freedom to do what you love doing.
6. Better value creation
Instead of putting many hours in solving any in-house bookkeeping issues, you can concentrate on adding value to your customers by outsourcing a bookkeeper.
7. Save on infrastructure costs
As a business owner, you would know that rent is one of the largest fixed costs for a business. If you hire a team of internal accountants, there would be no space for your sales or marketing team that directly contributes revenue. Outsource bookkeeping and maximize every dollar of the rent that you pay.
8. Keep your books private
Outsourcing is the best way for you to keep your company’s accounting information confidential..
9. Unbiased financial advice
During a financial crisis, you would be required to make tough business decisions. A third-part bookkeeping service provider is sure to be more impartial than an in-house bookkeeper. This way, you can get unbiased financial advice from your bookkeeping service provider.
10. Benefit from improved control
Contrary to popular belief, outsourcing bookkeeping to a professional bookkeeping company can give you more control, in terms of the software that you want to use, the date by when you want the work to be completed and even how you want your reports to be accessed.