Bookkeeping and accounting is one of the most essential jobs that must be carried out by small businesses. Whether it is so the business owner can get an idea of the cash flow and on hand cash of a business or so they can send accurate records and make payments to authorities such as Companies House and HRMC, without carrying out these tasks the business can easily land itself in trouble.
While entrepreneurs can have many great ideas and be inspirational as individuals, they aren’t always the hottest when it comes to accounting and bookkeeping. As a result, it is often wise to outsource bookkeeping operations so they don’t need to do it themselves and can focus on doing what they do best in the context of their business.
Here are some of the biggest benefits anyone who chooses to outsource their bookkeeping will enjoy.
It might seem a strange thing to say, but outsourcing your bookkeeping activities has the potential to save you a great deal of money.
Why is this the case?
First, the money you’ll spend on a professional to take care of your bookkeeping will be dwarfed by the money you’ll likely make through having the time to spend on the things you’re good at doing yourself.
Second, making mistakes in accounts, even if they’re genuine, can see you hit with fines and various other financial penalties. Hire a professional, and you avoid these right away.
Bookkeeping is one of those things that a business owner might do themselves during the early days. This is fine, as it might only need an hour a week to take care of. However, as the business grows, so will the demands in terms of taking care of the bookkeeping tasks. At the same time, because the business in general is busier, the owner will probably push bookkeeping down to the bottom of the task list.
If you’ve outsourced your bookkeeping, then as you get busier, you may have to increase your fee to the person or company doing the job, but you know your books will get the time they need.
This is a no-brainer. Why take the chance at doing the books yourself when you can get someone who knows exactly what they’re doing to do it instead?
We’ve already stated this will save you money. It will give you peace of mind, too.
If you’re not sure what to look for when taking care of the books, you can easily find your business accruing losses through fraud, embezzlement, or merely simple mistakes that you don’t realise are happening.
Bookkeepers are trained to spot unusual trends and patterns that could be a sign of fraud, while any simple mistakes are likely to be your own, and thus will be eliminated too.
Whether it is improved cash flow, ensuring you pay your creditors on time, ensuring your incoming invoices clear when they need to, or understanding how your regular expenses are influencing profitability, a bookkeeper will help your business to achieve a much healthier overall financial position. Many bookkeepers will even take care of chasing or making payments for you, so you don’t need to worry about it.
Overall, outsourcing your accounting and bookkeeping activities will bring huge benefits, both financially and from a task perspective for yourself. If you’re currently taking care of your own bookkeeping, it is time to consider a change.