Updated: Sep 20, 2022
We often meet a range of clients at a critical turning point in their growth phase. Due to the elusive million-dollar mark in annual revenue, business owners may feel the burden of managing their own bookkeeping catching up to them.
It doesn’t take long for a new business owner to understand that accurate and up-to-date financial records play an essential role in the success of a business. Simultaneously, the daily tasks required to maintain these records often fall to the bottom of an owner’s to-do list of priorities. Moreover, the value of time spent on updating the books translates into a pretty expensive hourly rate!
After all, hiring a bookkeeper to handle the accounting tasks in-house for the business is considered an effective solution to the problem. Here are five good reasons to outsource bookkeeping services:
Privacy: There are several things more protective in a business than internal financial records, including information, kept private and secure. Finding someone you can trust to do the job well, stay with the company long-term, and maintain confidentiality is not a simple task- especially when a local bookkeeper knows your personal financial health. Outsourcing to a virtual bookkeeping service with strong client references can give an owner peace of mind by removing the opportunity to have a member of their community in contact with their financial records.
Scalability: Growing businesses often start out with smaller needs but rapidly grow to require a full suite of bookkeeping services. Hiring outsourced bookkeeping with controller oversight and a full-service offering enables the service to scale to needs, without having to hire or train additional staff.
Training and Management: Most business owners are not in the position to be able to train or manage bookkeeping staff- primarily because their bookkeeper likely knows more about it than they do. But the benefits of having a bookkeeper up-to-date on the latest QuickBooks features or having comprehensive knowledge of state tax rules or reporting methods make a big difference in the quality of bookkeeping.
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Maximize Your Resources: When business owners try to save money by doing their own bookkeeping or delegating it to another key employee, they are expending valuable time and energy that could be better used in developing the business. When they outsource bookkeeping services, they free themselves up to spend time doing what they do best. CFOs, office managers and non-accounting personnel simply shouldn't be spending their time on the books.
Ready Financials for Tax and Audit: There is no concern over if the books are exact or questioning the integrity of the financial data. Whether a business owner needs to provide financial statements to the bank, satisfy investor reviews or share information with the IRS, outsourced bookkeeping services help make sure there is no doubt about the data.