For many small to medium-sized businesses, bookkeeping is a necessary evil. It’s time-consuming, meticulous, and can often feel like it’s detracting from the core tasks of running your business. Combined with the stringent demands of effective financial management, this mandatory task can suddenly manifest to become an insurmountable hurdle in your entrepreneurial journey. Here arises an important question – have you considered outsourcing your bookkeeping?
Outsourcing is a viable solution, increasingly common in the 21st-century business ecology. This shift away from traditional in-house operations to specialized external services is well-documented and supported by a host of compelling benefits. One significant area where this trend is thriving is bookkeeping. Despite some companies’ reluctance, the perks of outsourcing bookkeeping are worth exploring rigorously for your business.
Increased Accuracy and Reduced Errors
Professional bookkeeping service providers have an extensive knowledge repertoire about financial strategies and state-of-the-art technologies, thereby ensuring highly accurate data. The expertise brought by these professionals can also significantly reduce the risks of costly mistakes. A study by the Association of Certified Fraud Examiners found that small businesses tend to suffer disproportionately large losses from fraud, often due to inadequate bookkeeping. Outsourcing could mitigate such risks by introducing an additional layer of oversight, reducing the likelihood of financial discrepancies.
Contrary to popular belief, outsourcing your bookkeeping might actually be more cost-effective than hiring a full-time, salaried employee to perform the task. Keeping an in-house bookkeeper means additional costs like insurance, taxes, and benefits aside from the basic salary. When you outsource, you only pay precisely for the services you need. A survey by Deloitte found that 59% of businesses they interviewed cited cost-cutting as a primary reason to outsource services.
Optimization of Time and Resources
Bookkeeping is a time-consuming activity that can bring down your productivity. When you outsource, you free up valuable time that can be utilized to focus on core business activities and strategic planning. A report by Sage found that small businesses spend an average of 120 working days per year on administrative tasks, including bookkeeping. That’s a third of the year that could be spent on growing your business.
Scalability and Flexibility
Outsourcing bookkeeping also offers a degree of scalability that hiring an in-house accountant does not. As your business grows, your bookkeeping needs will become more complex. Outsourced teams can easily adapt to these changes, offering different plans and services that align with your business size and revenue.
Access to the Latest Tools and Technology
Outsourcing firms are equipped with the latest accounting software and tools. By availing their service, you get access to these sophisticated tools without having to invest in them yourself. This advantage ensures you get highly accurate, real-time data to guide your financial decisions.
While outsourcing may not suit every business, the majority will find the flexibility, cost-effectiveness, and expertise it offers extremely valuable. As a small to medium-sized business owner, your attention should be centered on expanding your business. Leave the complex, time-consuming tasks like bookkeeping to the professionals.
In this era of globalization, we encourage you to embrace the power of outsourcing. As Peter Drucker, the theory icon in modern management, states, “Do what you do best, and outsource the rest.” Join the trend of businesses reaping immense benefits from outsourcing their bookkeeping. Remember, the decision to outsource could be the best financial decision that escalates your business to new heights.