Outsourcing has become a global trend and a standard solution for organisations and small businesses. Businesses are adopting it as it is cost-efficient and helps companies focus more on core activities.
However, every decision you make has pros and cons; the same applies to outsourcing your accounting and bookkeeping functions. Although there are pros and cons, indefinitely pros outweigh the cons in outsourcing your account and bookkeeping functions.
What Are The Accounting Functions I Need?
Accounting functions are obligatory accounting rules and act as a backbone for any business. For fresh business owners and budding entrepreneurs, here are a few accounting functions you need to focus on.
- Preparing the balance sheet.
- Preparation of income and cash flow statements.
- Legal compliance and financial control.
- Mailing signed cheques to payees, electronic processing funds, and remittance of funds.
- Inventory cost management.
- Computation of estimated chargeable income.
Why Should I Outsource My Accounting And Bookkeeping Functions?
As business owners, we understand that you feel satisfied when involved in all your business functions. But when you pile up your workload, how effective are you?
You tend to become extremely busy with the day-to-day activities of your business that the core activities of your business start getting neglected, which may, in turn, lead to the downfall of your business.
The growth of the business is your primary objective, but you are equally responsible for your business’s finances. If you are not careful with your finances, the chances are that your business might end up at a loss.
On top of all, finances require greater attention and expertise. Thus, you need an accountant to help you administer your finances so that they can inform you on what needs to be done to improve your business financially.
Yes, hiring an employee to take care of your finances is great! But the cost? Well, not so cost-effective. You can consider an outsourcing company that would solely focus on your business’s finances. They make it their top priority to ensure that your business’s financial health is in check.
You might still think that you can multitask and do it yourself, but it never works. You ought to be considerate about the growth of the business and can easily be distracted if the workload is high.
If you aren’t convinced yet, here are a few benefits of outsourcing your account and booking functions.
Benefits Of Outsourcing Your Accounting And Bookkeeping Functions
It helps you stay focused.
As a business owner, you need to prioritise the growth of your business. Trying to keep track of your finances while handling the core activities of your business will distract your attention from the growth of your business.
Your time is precious, and your finances need a lot of time and attention, so why not hand over the responsibility of your finances to a bookkeeper? They are more effective and efficient.
Hiring an in-house employee might sound like a plan, but that’s one more person on your payroll, and training them isn’t going to be an easy task. It would be extra work on your to-do list. Consulting an outsource bookkeeping company would save you a whole lot of trouble, money, and time.
It’s impressive if you are willing to shoulder all your business responsibilities, but the chances are that you might end up in a lose-lose situation.
Remember, ‘focus’ is everything in a business; losing it means losing everything else.
While you can hire an in-house employee to take care of your finances, you need to note that one more person is placed on your payroll. By outsourcing your finances to a bookkeeping company, you pay strictly for what’s been done, not less or more.
Especially if you are a small business owner, you ought to be cost-effective and contribute to your business’s growth. Therefore, you need to reserve your payroll for employees who bring money to your business. Hiring an accountant can be a good decision once you’ve expanded your business.
A bookkeeping company is solely focused on providing you with quality financial services.
One of the most prominent advantages of contracting an outsourced bookkeeping company is that an expert analyses your accounts. The bookkeeper could be well versed in finances than you.
Finance is an essential aspect of any business, and you want a company that is best at what they do. Rest assured, your bookkeeping company would be sure to stay up to date with the updates and trends in their industry and provide the best services to their clients to keep up their goodwill in the market.
Helps you grow.
As a business owner, your focus is solely on the consistent growth of the business. At some point, you’ll want financial advice on your business that would help your business perform effectively and efficiently.
When you have a team of experts working on your finances, you’d be able to grow your business and cut down on expenses immensely. The outsourcing team would provide you with different plans and strategies to help you achieve your business goals.
When an outsourcing bookkeeping company handles your finances, you can vastly save time, money, and effort. In addition, you are provided with experts who can be twice as reliable and potent.
It is advised to be vigilant and do a background check on the company’s reputation you plan to outsource your accounting and bookkeeping functions for security reasons.
Outsourcing can elevate and enhance your business to a whole new level. So maybe trying won’t hurt. But if you still want to do it on your own here are some handy bookkeeping tips to help you get started.
Timcole is always one step ahead in using the most advanced accounting software! Contact us now to learn how you can save both time and money in your business!