Are you thinking of hiring a new bookkeeper? Here’s why you should consider outsourcing bookkeeping instead!
One thing most small business owners share in common, regardless of their industry or niche, is wearing too many hats. And although trying to do everything might work for a while, it’s not sustainable long-term. So as your business grows, it’s time to begin delegating tasks such as bookkeeping so you can focus on forging your company’s future.
However, having someone else do your bookkeeping doesn’t necessarily mean you need to hire an in-house bookkeeper. Outsourcing to a certified online bookkeeper can be a smart move.
Benefits of Outsourcing Bookkeeping
1. Minimize Costs and Maximize Quality
You’ll keep your staffing and payroll costs down while preserving the accuracy of your books.
For a small business owner, every new hire is a significant investment. It starts with advertising and sourcing quality applicants. Then, once a candidate is selected, you have to pay a salary, as well as payroll taxes, workers’ compensation, benefits, training, and so on.
As a result, hiring an in-house bookkeeper and getting them up to speed on your business books can be prohibitively expensive and time-consuming.
In addition, small businesses and startups often don’t have enough bookkeeping and accounting tasks to keep an in-house bookkeeper busy full-time. This is where small companies make one of two mistakes:
1. Having a full-time employee perform bookkeeping duties along with other responsibilities
Assigning bookkeeping tasks to someone who is not an experienced bookkeeper and has other responsibilities is just another version of what the small business owner was previously doing – wearing too many hats – and can result in costly mistakes.
2. Hiring a part-time bookkeeper
Part-time employees often have lower engagement and motivation to help you achieve your business goals. And because there is less involvement and commitment, part-time bookkeepers may be less dependable.
Outsourcing bookkeeping tasks to a certified online bookkeeper or bookkeeping firm is a more cost-effective and efficient approach for small businesses and startups. You’ll save a bundle of money and benefit from a subject-matter expert who can offer guidance on best practices and procedures to safeguard the financial health of your business.
When considering outsourcing vs. in-house bookkeeping, the financial implications are often the deciding factor for small business owners.
2. Save Time and Avoid Hiring Headaches
You’ll achieve productivity faster with an outsourced bookkeeper.
Beyond keeping your staffing and payroll costs to a minimum, outsourcing your bookkeeping can benefit your business in other ways.
Outsourcing is an excellent way to streamline the onboarding process and achieve productivity fast.
When you partner with an established online bookkeeper or bookkeeping firm, you won’t have to waste hours posting job ads, sorting through resumes, or scheduling and conducting job interviews. You also won’t have to deal with the paperwork required when hiring an in-house employee, and you won’t need to deal with training, performance reviews, or promotions.
In fact, all you’ll need to do when you work with an outsourced online bookkeeper is to provide some information about your business. It’s far simpler, particularly for small business owners who lack their own HR department, and the convenience is unbeatable.
3. Gain Expert Support and Advice
You’ll gain access to invaluable expertise and guidance.
Whether it is cupcakes or home health services, you’re an expert in your business. But you’re probably not an expert at bookkeeping and accounting.
So one of the most significant benefits of outsourced bookkeeping – for you – is access to expertise and reliable advice. You’ll be able to ask your most perplexing bookkeeping questions and get trustworthy answers. Plus, your new online bookkeeper will be on top of the latest federal and state regulatory changes that may affect your business.
While an experienced in-house bookkeeper can provide the same level of expertise and reliable advice, small businesses and startups often cannot afford the salaries experienced bookkeepers command. As a result, small companies tend to hire those with little to no experience, such as a recent college graduate.
In contrast, by outsourcing bookkeeping tasks to an established firm, you’ll have immediate access to a bookkeeper who has extensive experience and can provide trustworthy advice. Plus, you’ll still be able to limit your bookkeeping costs to a reasonable amount.
4. Have Up-to-Date and Accurate Financial Data
You’ll be better able to make informed business decisions when your books are accurate and up to date.
Certified bookkeepers and accountants have undergone extensive, specialized training. As a result, they know the ins and outs of a balance sheet and can generate accurate financial reports. In short, they know what they’re doing.
One of the more compelling arguments for outsourcing bookkeeping tasks is to minimize bookkeeping errors. You won’t need to look over your bookkeeper’s shoulder when you hire an outsourced professional compared to an in-house bookkeeper.
5. Flexibly Adapt to Changing Business Needs
You’ll find scaling your business with an outsourced bookkeeping team easier and more convenient.
Every small business owner navigates certain milestones during the life of their company. The first major milestone, of course, is launching the business. The second might be hiring the first employee, followed by scaling the business.
Scaling can be particularly tricky for small business owners without easy access to significant amounts of working capital. And obtaining funding often requires multiple meetings with lenders or venture capitalists.
Many small business owners try to reduce operating costs to minimize the need for outside funding. But a growing business usually needs to scale up the accounting department to keep up with bookkeeping demands, making it challenging to keep costs down.
Outsourced bookkeeping makes it easier for small businesses and startups to scale by simply increasing your bookkeeping services package to meet your company’s needs. And scaling your outsourced bookkeeping services is faster and more cost effective than hiring in-house staff.
When you’re ready to switch to outsourced online bookkeeping, Accounting Meister is here to make the transition easy and seamless. Our Certified QuickBooks ProAdvisor and our CPA are highly experienced professionals who specialize in working with small businesses and startups nationwide. Contact us today to request an initial consultation.