11 Advantages of Bookkeeping Services for Small Business

Bookkeeping services for small businesses have proved to have many benefits. Bookkeeping is essential for small business success, and the numbers produced in your books are crucial for making good business decisions. Along with receiving accurate and timely data, bookkeeping services for small businesses can also owners time, offer scalability, lower costs, and gain additional expertise. These are just a few of the reasons that outsourced bookkeeping services are a popular choice by many small businesses in Arizona. 

In many small businesses, employees are also overburdened with work. Production, marketing, and customer relationship management are generally core small business activities that need attention every single day. Since that is usually the focus for small business owners, bookkeeping activities often get ignored.

Here’s a look at some of the benefits and considerations involved with hiring bookkeeping services for small businesses. 

Looking for bookkeeping services for your small business? Contact the Limitless Accounting team!

Why Should I Hire a Bookkeeping Service for My Business?

As a small business owner, many day-to-day tasks are often prioritized based on importance. As your business continues to grow, a business owner’s day may be filled with performing business management tasks rather than what they need to focus on–maximizing time spent on continuing the business’s growth. By hiring a bookkeeping service for your business, the long days of searching for the answers to your unbalanced books are a thing of the past. Bookkeeping services are able to save you time by handling the daily functions of your business’s finances.

A bookkeeping service can provide other valuable services to your business as well. By creating reports tailored to your business’s growth patterns, more sound decisions can be made in relation to your business. Outsourced bookkeeping can provide a long list of benefits to your business including:

11 Advantages of Bookkeeping Services for Small Business

1.Unbiased Opinion

Small business bookkeeping services can offer some crucial insight into your business’s financial situation. An internal bookkeeper is often emotionally involved in the business and sometimes won’t show a negative side. Outsourced bookkeeping services will reveal positive or negative insight, and ensures presenting the most valuable information so that you don’t miss anything.

2. Helpful in Future Planning

Small business bookkeeping services will help maintain proper and completely accurate records of financial data. This can be extremely helpful in long-term planning when you need to analyze data. Your small business bookkeeper often has years of experience making them extremely reliable. They will work with your team and can help in creating a “road map” for your small business.

Has your business set aside atleast onem onth of average business expenses in an "emergency fund"
Most business experts suggest setting aside three months of business expenses

3. Get Only the Time You Need

Does your small business have a low transaction volume? A full-time staff employee might not be necessary and often requires additional benefits. A full-time accountant might be unhappy if there is not enough accounting work for them, forced to pick up miscellaneous tasks around the office. With bookkeeping services for small businesses, you have the right amount of time devoted to your business needs. In fact, you only pay for exactly what you need! When your business grows, a great small business bookkeeping service can scale to meet your growing needs. This is especially perfect for small businesses with seasonal needs since no changes are required and your small business bookkeeper can easily adjust to your current needs.

4. Lower Prices

When you run a small business, every penny counts. One major goal of many small business owners are reducing total costs of operation. The obvious cost savings benefits are lack of payroll taxes, paid vacation and other employee benefits.  Also, in general, you should be able to pay a bookkeeping service much less than a full-time employee. Additionally, and more importantly, you benefit from eliminating turnover and training of an in-house bookkeeper by hiring bookkeeping services for small businesses.

5. Get the Skill You Need

Lower cost definitely doesn’t have to mean lower quality. Although you will be saving money, you will still be benefiting from the high quality, degreed accounting professionals that your business needs to ensure accurate and timely data. When you hire small business bookkeeping services, you get a staff that is 100% focused on accurate accounting, a staff that is up-to-date on the latest trends and technology, and a staff that is containing in education to help other businesses just like yours.

6. Access to Software

Most small business owners do not keep up to date with the latest and greatest bookkeeping and accounting software. We are here to tell you- that is OK! Bookkeeping technology is constantly changing, and the best technology can often be a little more pricey than small business owners can afford. When you hire bookkeeping services for small businesses, however, you will have access to them without actually purchasing them or having to learn how to use them.

7. Quicker Invoicing

If you don’t send an invoice, you won’t get paid! To ensure proper cash flow management, your small business must stay on top of invoicing. The completion of these tasks in a timely manner is essential, which is where small business bookkeeping services can help. Outsourced professional bookkeepers can help implement an online system. By receiving payments faster, a business has the cash to speed up its operations. This can significantly help the financial growth of the company!

8. Say Goodbye to Paying Late Bills

Running a business day to day is time-consuming, and sometimes the little things are left undone. Not paying a bill is one of those mundane tasks that can result in major consequences, and it’s important to delegate this task to someone with the skills and time to oversee paying company bills. A bookkeeping service excels at this because that’s its job. Arrange to have statements sent to the bookkeeper in “care of” your small business, or give him or her access to online accounts to check statements and make payments online.

Running a business is extremely time-consuming. Little tasks can often forget, but some such as paying bills, have major consequences if left undone. Delegating this task to someone with the skills and time to oversee paying company bills is crucial. Small business bookkeeping services excel at this because that is their job! Small business owners often arrange to have statements sent to the bookkeeper in “care of” your small business or give your outsourced professional access to online accounts to check statements and make payments online.

9. Avoiding Overdraft Fees and Interest Payments

One duty that is often delegated to bookkeeping services is bank reconciliation. Don’t rely on your bank statements to give you an accurate picture of your financial bottom line. A bookkeeper will handle your accounts payable and accounts receivable and enter the information in your financial software of choice so that you know what your real balance is. You won’t make the mistake of writing a check for more than you have available, which can result in an overdraft fee and additional interest on outstanding debts. This removes any possibility of accident lay writing a check for more than you have available, which results in overdraft fees and even additional interest on outstanding debts.

10. Focus on Your Business

Using small business bookkeeping services allows you to focus on what is important to you and the areas of business that need the most attention. Maybe you want to focus on sales and growth but you need certain financial reports and analysis data to do so. Using an outsourced bookkeeping service will alleviate any concerns about your business financials so you can refocus on what is important to you.

11. Create a Long-term Business Partner

Most outsourced bookkeeping service providers are interested in creating long-term partnerships with your business. As your business grows, they have the staff and experience to grow with you. Keeping the same service provider long-term ensures they really understand your business and your business needs. A great small business bookkeeping service will be able to offer additional services such as an outsourced financial controller or part-time CFO services.

Final Thoughts

Most small business owners don’t have time to collects invoices, payments, credit sales, reconcile bank accounts, ensure accuracy of financial statements, enter the data in accounting software, and pay all the company’s bills. Bookkeeping services for small businesses help ensure that your small business accounting function is working efficiently and effectively at a much lower cost than hiring an in-house bookkeeper.

When is the Right Time to Hire a Bookkeeping Service?

When it comes to managing your business’s books, it is important to realize when it’s time to consider outsourcing your business’s bookkeeping. The moment that you feel things starting to slip out of control, you should start exploring bookkeeping service options. Some other signs it may be time to hire an outside bookkeeper include:

  • The in-house team is spending too much time managing the books.
  • The business books are struggling to be kept up to date.
  • Filing taxes is becoming more work.
  • The business owner is struggling to make upper-level business decisions.

Limitless Investment & Capital Bookkeeping Services for Small Business in Gilbert, Arizona.

At Limitless Investment & Capital, you get a team as dedicated to your business as you are to handle the bookkeeping so you can find peace of mind and precious time.  Instead of laboring over the books, focus your efforts and energy on the pieces of the business that only you can.  Our goal is to provide you true accounting freedom.  Interested in a free financial analysis? Contact us TODAY to get started!