The value of working with a bookkeeper is undisputed; bookkeepers are professionals at managing the day-to-day financial transactions of business, providing the business owner with the information necessary to make sound financial decisions for the future.
Outsourced accounting, bookkeeping, and controller services have become a more common solution for small businesses today. Why? The advantages, which once were only enjoyed by mid-market and enterprise companies, are becoming understood by smaller companies.
Why Do Companies Outsource?
Cost savings, focusing on core business functions, and solving capacity issues are primary drivers to outsource. Leading organizations use outsourcing to drive transformational change and improve business results. – According to Deloitte’s 2016 Global Outsourcing Survey
Consider the following benefits of outsourced bookkeeping services.
1. Outsourced bookkeeping services help your business grow faster and stronger
Other firms are constantly growing. If they grow at a rate faster than your small business they may be snatching away your clients too. Outsourced bookkeeping services are important for one major reason- it can help you maximize your return on your core competencies. Having a professional handle your books frees up your valuable time that you can use to grow. Not only can you bring in more clients by focusing on marketing but you do not have to manage the tiresome cycle of hiring, training, reviewing, managing, and firing employees. Additionally, outsourced bookkeeping services can reduce costs by 30-50% or more.
2. You Improve Productivity and Work Quality
Although you may feel more comfortable with someone you know managing your small business’s books, you may be missing timeliness, efficiency, and accuracy which requires proper training and correct processes and procedures.
Professional outsourced bookkeeping services often have decades of experience with experience across multiple industries. The best bookkeeping services even tailor their processes and procedures to fit the exact unique needs of your business. With high expertise and robust knowledge of multiple software systems, you should expect consistent and accurate results.
3. You Cut overhead by Paying only for Actual Work Done
When you outsource accounting and bookkeeping, invariably you will pay only for the work actually done. Thus, it helps increase your profit margin significantly and at the same time, it also helps you sell more work in any given time period.
Since technology has evolved, outsourced bookkeeping services offer the opportunity for cost-efficient and time-efficient way of managing a business’ books when compared to hiring a bookkeeper on staff. When hiring an in-house bookkeeper, you are adding another employee to the payroll, which also means paying for payroll taxes, vacation pay, sick pay, training, and other benefits. The average salary for a bookkeeper is just over $40,000 – a cost that may not make sense to take on (and at a price tag that does not include employee benefits).
4. You Can Adjust Easily to Your Business Cycles
Accounting workloads are usually never even throughout the year. Outsourced bookkeeping services allow you to easily increase staffing of cut back depending on your business cycle. It provides you a flexibility that is difficult to achieve on your own.
5. Security
While it seems counter-intuitive, data privacy can be more secure when it is stored offsite using secure online tools than in a paper environment when using proper online technology. The biggest privacy risk lies with the people who have access to financial information, not where those people are working. Risks increase when using traditional ledgers and notebooks to manage the most important financial information.
With outsourced accounting services, you have multiple pairs of eyes on your transaction processing and reports, which provides increased internal controls. While fraud can never be ruled out 100%, a dedicated team with specific expertise in accounting best practices will be far more likely to spot an anomaly than one person who’s probably overburdened and overloaded with work
Limitless Investment and Capital Outsourced Bookkeeping Services
From advanced bookkeeping and accounting to customized management reporting and controller services, your outsourced accounting service is designed to augment your staff and transform your finance function. It’s not just about maintaining your accounting, but also providing a platform to drive profits, improve cash flow, and grow your business.
At Limitless Investment and Capital, we’ve helped businesses and nonprofits of all sizes, gain the peace of mind, efficiency, and actionable financial intelligence they need to succeed. Contact us to start a conversation.