As a businessowner, it is your responsibility to keep an eye on what is coming into and what is going out of your business to keep it running efficiently. At times this can be a complicated endeavor, or simply may not be your strong suit. Let us outline a few reasons why finding a third party to handle your books may be a good idea.
Internal Cost: If you have someone internally handing the books, this person likely has a salary or hourly wage, office space, computer and supply expenses, benefits and the like. Oftentimes, this can be minimized by using a third party who acquires all of their own overhead. If someone isn’t hired internally and someone else in an administrative or ownership role is taking on these tasks, that is time taken away from potential revenue-generating activity where that person’s skill set is better used. Either way, passing bookkeeping to another entity can save time and money.
Familiarity With The Processes: Bookkeeping is different than accounting in that it doesn’t offer advice or strategy to move forward. However, bookkeepers are familiar with what numbers and metrics need to be attained and accumulated to go to your accountant at year-end to help those entities direct you moving forward. This can save time, frustration and doubling back when someone “in the know” is handling it from the get-go. Just like you would outsource a plumbing issue, the painting of your office, or IT needs, bookkeeping can save a lot of hassle in the long run.
Clearer Reports: When your numbers are well-organized and easy-to-read, it can make it easier to see areas of your business where you can cut costs or streamline processes. This in turn can save your company money and effort. Being able to see the forest for the trees can be extremely valuable over time.
Reduce Your CPA Costs: If your books are cleaner when you approach your CPA at the end of the year, monthly, quarterly or at tax time, your company may very well be able to save hours of due diligence you would be normally charged for. Your general bookkeeping needs can be done at a more affordable rate, and the strategy part of your company’s finances can be done by those with more specific qualifications.
The finances of your business are key to its success. We at Better Bookkeepers hope that this blog and others on our site can give you some context to inform business owners as they grow into 2022.