Outsourced Bookkeeping: 5 Best Reasons

Many small business owners resist outsourcing accounting functions, and it’s easy to understand why. It can be challenging to let go of the reins and delegate when you’ve built a business from the ground up. 

There’s also the misconception that outsourced bookkeeping is only for big firms with complex accounting needs. However, this is no longer the case. Technology has made it more accessible for small businesses to outsource their accounting functions to drive efficiency and business growth. 

Your bookkeeping function does more than just process transactions and lay the ground for financial reporting; it drives actions that impact your enterprise operations and profitability.

So, here’s a crucial question: “Is bookkeeping your key business forte?”

If your answer is no, here are five good reasons you should relinquish some control and look into outsourced bookkeeping processes. 

1. Get More Time to Focus on Core Business Functions

Bookkeeping is essential, but it doesn’t add to your bottom line. Many business owners discover that bookkeeping is a tedious, time-consuming function. And because cash flow is so important, you’ll spend more time managing your books as your business grows. On the other hand, neglecting your accounting and bookkeeping to focus on scaling your business could lead to severe issues, including actual monetary losses. 

Finding outsourced bookkeeping means you can focus more on scaling your business. 

2. Access to Expert Help and Strategic Leadership Advice

While it’s easy to think ‘I’ll just do it myself,’ bookkeeping requires a specialized set of skills, whose requirements only grow in complexity as your company expands. Outsourcing gives you access to executive-level financial knowledge. You’ll find that bookkeepers do more than just log transactions and maintain accurate records. An experienced bookkeeper brings with them a world of knowledge and expertise. They can provide you with invaluable financial metrics to help you increase profits and grow your business.

3. Save Money on Staffing and Payroll Costs

Hiring experienced in-house professionals is expensive and may not always be financially feasible for your business. Not only will you have to cover a base salary, but you’ll also have to pay bonuses, benefits, taxes, and overhead costs. Although outsourced bookkeeping may seem pricey at first, the math says otherwise. When you outsource, you only have to pay for work completed, whether that’s on a weekly or monthly basis. 

4. Access to the Top Tools and Systems in the Industry

You may be pleasantly surprised by what you find when you look beyond having a full-time/in-house bookkeeper. The gig economy is incredibly competitive, meaning any good bookkeeper who contracts their services takes great pride in their work and reputation. As such, they stay up to date with the latest changes in the market and often invest in developing specialized skill sets.

By choosing the outsourcing company wisely, you can rest easy knowing your books are in capable hands and that all your financial operations comply with any regulatory changes. 

5. Adaptability and Scalability

This has to be one of the most significant benefits of outsourcing your bookkeeping function. Outsourcing allows you to expand or cut back your operations without impacting the staff directly employed by you. So, for instance, you don’t have to lay off an employee when you experience a sudden drop-off in revenue, even if it’s only temporary. 

Also, you can scale up your operations without going through a rigorous recruitment process. Driving efficiency is a high priority for small business owners who outsource their finance and accounting functions. Having outsourced bookkeeping means you can scale up or down without any lag in your operations, thereby improving the overall efficiency of your business. 

Positioning Your Business for Growth or Change

Outsourcing your bookkeeping gives you access to a wider range of skillsets and knowledge. And Goode Bookkeeping & Consulting is simply the best in the business. Not only will we handle your bookkeeping needs, we’ll also provide you with expert advice to position your business for growth today as well as in the future.