Bookkeeping: love it or hate it, it’s one of those business basics that you have to get done. Recording financial transactions, tracking expenses and managing financial documents — anyone can see why bookkeeping is so important for the success of a business.

However, managing the books can be a time-consuming and costly process, especially for small businesses and startups. That’s where outsourced bookkeeping — giving the task to someone outside your business — comes in handy.

So, if you’re doing the books yourself (or thinking about hiring an in-house bookkeeper) here’s why you should outsource your bookkeeping.

Outsourced booking ensure you have up-to-date books

A lot of business owners’ books leave something to be desired, be it because of inaccuracies, missed entries or both. The reason? People simply have so much on their mind that it feels acceptable or necessary to push the books to the end of the month.

However, that’s one of the worst things you can do; you should be updating the books daily. That way, you gain a real-time view of your financial position, allowing you to make quick and informed decisions.
Daily bookkeeping also helps ensure that your records are free from errors, which will save you time and money in the long run as you won’t have to spend hours tracking down and correcting mistakes.

You’ll also avoid accidentally misreporting your income on your tax return, helping you avoid penalties.

So, if you’re struggling to keep up-to-date with the books, that’s one reason why you should outsource your bookkeeping.

Outsourced bookkeeping saves you time

But perhaps you’ve actually managed to stay on top of the bookkeeping. That’s great to hear, but do you feel like, with the extra work, you’re able to focus on the rest of your business? Do you have time to focus on future plans? Or are you constantly playing catch-up?

By outsourcing your bookkeeping, you can claim back some of your time to spend how you see fit — whether that’s focusing on activities that actually generate revenue or just recharging and spending more time with the family.

You can gain access to expertise that you may not have

Bookkeepers have trained for years for their role and possess expertise in record-keeping and management as a result. Therefore, the value they can bring to your bookkeeping processes can be huge.

Some areas of skills a bookkeeper can bring include:

  • accounting principles and practices
  • use of bookkeeping software
  • organisation and management
  • financial problem solving.

Furthermore, bookkeepers have a lot of experience of working with numbers and an eye for detail, which they use — on top of their constant overwatch of the books — to keep them accurate.

They’ll also be able to discuss the books with you, helping you make smarter business decisions based on the reality of your business’s finances.

It’s more cost-effective than an in-house bookkeeper

“Hang on”, you might be thinking, “why do I need to outsource a bookkeeper? Why shouldn’t I just hire one in-house?”.

That’s a good question and one that we can answer: outsourcing bookkeeping functions can save you money in the long run.

After all, hiring an in-house bookkeeper requires paying for employees benefits, payroll taxes and other related expenses. Meanwhile, outsourcing allows you to pay for the services you need only and avoids the costs of hiring, training and managing employees.

Outsourced bookkeepers can also scale up or down their services based on the needs of the business. That way, as you grow, there’s no need to hire anyone else to pick up some of the slack.

Have we convinced you of the benefits of outsourcing your bookkeeping? If so, don’t hesitate to get in touch with us to discuss how we can help your business.