As a small to medium sized business owner, your time is your most precious resource. Along with the day to day tasks of your business itself taking up your time, you also need to spend time focusing on administrative tasks such as keeping track of your finances. All of this can be a lot to juggle for a small team — especially if it’s just you! And if your finances aren’t documented and accounted for on a regular basis, this can make key periods like tax season and end of quarter reporting even more stressful.
Luckily, bookkeeping is a task that is easy to outsource and delegate, and you don’t even have to hire a new full-time staff member to take care of it! In this blog, we discuss different options for managing your finances, and why outsourcing your bookkeeping as opposed to doing it in-house can help you run your business more efficiently and effectively.
Saves Time and Money
Bookkeeping is an essential task of your business, but as a small business owner, you may not have time to dedicate to this task — especially when your business is new and you don’t have cash flow to hire additional employees to help with administrative work. And as your business grows, so does the time it takes to manage your books.
Bookkeeping and accounting firms are established companies that specialize in business finances; some even tailor their services to small businesses with affordable offerings that are a fraction of the cost of hiring someone in-house (and paying for their salary, supplies, benefits and training). Plus, hiring a new employee involves additional necessary time for onboarding and training them before they’re fully able to take on your bookkeeping tasks. Bookkeeping firms have certified staff that are ready to go with the expertise, tools and training they need to take on your business financials right away. Outsourced bookkeepers are equipped to prepare your financial reports, including balance sheets, and handle all of your accounts payable, accounts receivable, and credit card transaction entries.
Provides Expert Financial Advice
Having a bookkeeping and accounting firm along your side can help your business grow, with professional guidance around business planning and solid financial advice. These firms will have a whole team of experienced professionals to help you make the best financial decisions for your business — this is especially important in the early days of your business when getting to a stage of growth and cash flow is essential.
Since bookkeeping and accounting are different, having a team of professionals at a firm that specialize in each ensures you are getting appropriate financial advice from the right person. An in-house bookkeeper may not have the knowledge you require in some situations, and an in-house accountant is more expensive to hire due to their additional education and certifications. If your in-house bookkeeper runs into unforeseen delays or problems, they don’t have the resources to consult for experience, and also may lack the experience needed to adapt your bookkeeping as your business changes and grows.
Outsourcing your bookkeeping gives you access to more experts and a greater pool of knowledge than an in-house bookkeeper, ultimately giving you the tools you need to keep your business financials on track.
When it comes to managing your finances, flexibility with the workload is important. If you only have one in-house person, this can limit the amount of work they’re able to complete, which can create issues during crunch times like tax season or when you’re trying to expand your business. Conversely, at slow times for your business, you still have to pay in full for your employee even though you have less revenue and work for them to do.
Retaining a bookkeeping firm gives you the flexibility to take on a variety of work no matter the size, while keeping your cost for those services at a minimum.
There are many benefits to hiring an accounting and bookkeeping firm for your business. At Balncd, our dedicated professionals are here to help you to develop a plan that will suit your needs and provide you with effective bookkeeping and financial monitoring. We also provide training and support to help your employees build their expertise, which can help you transition from using an accounting firm to hiring in-house employees. Trust the professionals to handle your numbers — contact us today to see how our services can help your business move forward and grow.