Has your bookkeeper taken an exit from the company? It can be worrying if you don’t have enough time to handle your accounts as a busy entrepreneur. However, it is also an opportunity for switching towards outsourced bookkeeping.
After the business starts generating revenue, you have accounting hurdles to cross. Hiring a bookkeeper is the first step for business owners to manage their accounts. However, finding an eligible person for your company at an affordable price is challenging. An outsourcing company can be your solution.
In this guide, we’ll see how your bookkeeper’s exit from the company is an opportunity for you.
Who is a bookkeeper?
A bookkeeper is an accounting professional responsible for maintaining a detailed record of business transactions in an accounting system. Although people use the terms bookkeepers and accountants interchangeably, bookkeepers are essentially the ones who keep an account of how your finances come in and go out every day.
What are the benefits of bookkeeping?
Credit: Perth Tax People
Bookkeeping has multiple benefits that can help you move along with the changes in the financial world. Some of them are:
1. Detailed financial recording
A bookkeeper maintains thorough and detailed financial records of your business transactions. These records assist you in supervising business accounts and provide greater assistance in creating financial statements that a company needs during tax, audit, and legal issues.
2. Complaint with the law
A bookkeeper will help you comply with legal regulations and ensure all your books and accounts are up-to-date with any recent regulation changes.
3. Plan and predict the future
Bookkeepers maintain detailed transaction records that give a better view of the company’s accounts. Planning and predicting the future is more manageable as you stay confident with your data. You can solve issues quickly and get in touch with good opportunities. The profit and loss statements give you an idea of what you are doing, improving revenue, reducing expenses, and how much time to devote to making better business strategies.
4. Instant reporting
Having a bookkeeper means you will always have an updated balance sheet and other financial statements to inquire about your present account status. An accountant or an auditor can conclude the official financial statement with reports in hand.
5. Better networking
Bookkeepers have good relations with investors, shareholders, and banks. They open up a door to improve your business relationships and bring in capital, investments, or affordable loans for growth and expansion.
Investors want to observe your current business health and prospects before investing in your company. The bookkeeper will help you create financial statements and forecasts to attract them.
6. Business decision making
Bookkeeping records assist while making intelligent business decisions. A bookkeeper can help you identify money-making opportunities and avoid unnecessary expenses.
7. Risk management
Bookkeepers help you identify fraud and embezzlement within your business or business partners. An honest bookkeeper will support any suspicious business transaction and help you rectify any fraudulent activity.
8. Stress-free tax season
You lead a stress-free tax season when your books are up to date. A bookkeeper can offer you year-round tax advisory services and helps you make standard tax plans. They can note down your income and expenditure, which is essential to report during tax return filing, and help you get refunds from HMRC if you are eligible for any business expense or tax relief.
9. Allows you to focus on other activities.
Running a business while doing the bookkeeping yourself can be a hectic process. Therefore hiring a bookkeeper can help you do accounting tasks and find time to focus on revenue-generating activities.
10. Easier Audits
When your business maintains a better data recording model, producing financial statements during audits is much easier and faster. During an audit, accounts seem to be messy and disorganized. You need to hire an auditor to access the detailed balance sheet and compare them with the statement only when you have a bookkeeper to record all the financial transactions and prepare financial statements.
11. Access to the latest technologies
With technological advancements, companies are turning towards new financial tools and cloud-based accounting software. However, it becomes difficult for owners to learn how to work on them; instead, use a bookkeeper’s expertise in handling such technologies and get the best error-free outcomes.
How is outsourcing bookkeeping services better than in-house bookkeepers?
People want to know why they should outsource bookkeeping services instead of hiring an in-house bookkeeper. The answer is here:
1. You save time
You don’t have to hire a new bookkeeper, while your work gets done by probably the best bookkeeper in London. Selecting a candidate is tiring as you need to take interviews, ask questions, compare answers, go through client feedback, and others.
With an outsourced bookkeeping service provider, you get access to the right person who understands your business and can help you to their best.
2. You save money
Keeping an in-house bookkeeper is costly. You need to pay them a salary, employee benefits, training, and other facilities. However, an outsourced bookkeeper will ask you to pay a fixed fee only for their services and for a particular period.
3. You get access to their expertise
An outsourcing company works with candidates having expertise in almost every sector and can provide necessary services whenever asked. A low-paid in-house bookkeeper may be fresher and lack the skills to deal with your company’s needs. But, a low-cost outsourced bookkeeper will never let you compromise the work quality.
4. They serve your needs with their experience
Outsourced bookkeepers have years of experience working in your industry and can provide a higher standard of services than inexperienced in-house bookkeepers. Even if you hire an experienced bookkeeper, the charges will be higher compared to outsourced services.
5. They help you in times of need
If you hire an in-house bookkeeper, you need to keep and pay them throughout the year even when they have no work to do. But, outsourcing such services will help you only when you need them, like when your business starts growing, handles seasonal needs, etc.
6. They provide you with the best services
An in-house employee can have personal ties with your company and, therefore, may create bad business strategies leading to money loss and headaches during the tax season. But an outsourcing company will always provide unbiased advice as they have no connections within the company, and your success or loss won’t affect them.
7. You get the best team
If you hire a single employee, they will serve a single need. However, outsourcing your bookkeeping to an accounting firm will allow you to meet with a team of professionals ready to work for you. The service provider will assign different accounting tasks to their professionals and offer a satisfactory quality of work.
Outsourced bookkeeping can eliminate your worries when a bookkeeper leaves your company. It helps you save time and money and work with the best team of professionals who have experience, knowledge, and skills to upscale your business quickly.
The right outsourcing firm will work on the ongoing project of your company, regardless of who was working before. They always come up with the best solutions regardless of the type and size of the company.
You can have a face-to-face conversation with an outsourcing firm and discuss your requirements. They will help you find the best candidate without wasting your time and effort.