When you’re managing the start of your own business, often the last detail you think about is your need to hire bookkeeper. Things like maintaining daily records of bank reconciliation and recording receivables can be tedious and overlooked.
This tedious work is accomplished within minutes with accounting software. However, outsourcing your bookkeeping needs can prove to be more advantageous.
Below are four top reasons why many prefer working with a third party bookkeeper:
Even with accounting software, basic accounting knowledge is necessary for correct recording. Financial statements are useless if they are not accurate. When filing and paying taxes, inaccurate financial statements can result in penalties. Remember, it is always the management’s responsibility to ensure that financial statements are correct, not the tax preparer.
Stakeholders use financial statements in decision making. For financial statements to be useful they must be timely. Businesses can lose customers and profits if a certain decision is not made within a specified period. By having a bookkeeper, business owners can request updated financial statements anytime they want. Modern tools enable your bookkeeper to reconcile bank transactions daily; they no longer need to wait for the month end statement to do it.
When you outsource bookkeeping, you’re free to focus on other critical aspects of the business that increase profitability.
Outsourcing is significantly cheaper than hiring an in-house bookkeeper. Hiring an employee means you’ll fork over the cost of employee benefits and payroll taxes. You eliminate such additional expenses when you outsource.
While there are fortunately several options for bookkeeping solutions, businesses ultimately have to decide what’s right for them. Outsourcing those needs is one option that results in increased accuracy and efficiency. Who wouldn’t want to be freed up to focus on what they do best?
Stay up to date with the latest video business news, strategies, and insights sent straight to your inbox!