Top 5 Reasons To Outsource Accounting and Bookkeeping For Your Small Business
Like most small-business owners, John has a limited amount of time to devote to each task that concerns his business.
At the end of the day, he ends up working more in his business instead of on his business.
Above all, John struggles with doing bookkeeping and accounting on his own as he doesn’t have the necessary skills and enough time to do it properly or consistently.
The books are weeks behind by now. Not to mention the tax payment delays that have been worrying John each day.
An audit from the CRA would be disastrous for his business at the present moment.
However, outsourcing accounting and bookkeeping can change all this and allow John (and you, as well) to focus on his business and his customers’ needs.
Let’s dig deeper into what makes hiring someone to deal with your accounting and bookkeeping the best choice for your business.
Why you should consider outsourcing accounting and bookkeeping for your small business? [5 benefits that will change your mind]
It’s time to stop making up those dark scenarios in your head about what happens when you can’t keep up with accounting and bookkeeping for your company anymore.
Understanding the limits of your team in terms of time and skillsets and determining which operations can be tackled internally and which can be handled by third party providers is the first step to optimizing your business processes and improving overall efficiency.
We know it’s hard to delegate important tasks - such as accounting and bookkeeping - that determine the financial situation of your business. Nonetheless, finding and using the right bookkeeping and accounting services can save you precious time, allowing you to focus on running your business and leveraging opportunities for growth. Also, putting your financial maintenance in the hands of professionals can lift the pressure and stress off your shoulders.
You should think of outsourcing services not as an expense but rather an investment. In this case, accurate, timely and actionable financial information will enable you to make data-driven decisions and keep you from making any mistakes that could endanger the future of your business.
Here are the top 5 reasons you may want to consider outsourcing accounting and bookkeeping:
You won’t have to worry about inaccuracies or missed deadlines
With outsourced accounting and bookkeeping, you won’t have to rush to update your books at the last minute or to take care of the tax payments or reporting and filing requirements you’ve been postponing. Also, you won’t have to worry about any accounting error that might have escaped your notice.
So, instead of looking over financial records to make sure everything is accurate, you’ll have an experienced, professional company to review the financial statements for your business and finally free enough time to plan for your next quarter. Moreover, you’ll always be audit-ready.
You’ll save more money than when having an in-house solution
Having a knowledgeable employee to handle accounting is indeed valuable, but as we all know, employees are expensive. When you pay for an in-house accounting team, you also have to pay for their benefits, training, equipment and office space. On the other hand, when you outsource services, the respective company covers these costs for you reducing your overall operating costs.
What’s even more, the cost savings don’t end here. Having a performant accounting software set up will make it easier for you to manage accounts payable and accounts receivable. This way your invoices will be generated on schedule helping you get paid on time, and also your payments to vendors will be paid without any delay. Thus, you’ll be able to take advantage of prepayment discounts and prevent late fees.
You’ll be able to leverage the outsourcing company’s expertise for your business
It is by far more beneficial to your business to leave the process of organizing and tracking your business finances to skilled experts that are well-familiarized with the tax law in Canada and the US and can successfully guide you through tax season.
By outsourcing day-to-day accounting and bookkeeping, you will not only have support in managing cash, accounts receivable and payable, regulatory compliance and taxes, but you will also benefit from solid financial advice that will help you make sound business decisions. In short, tapping into their extensive resources - technology, methodologies, and people - your business gains a real competitive advantage.
You will save time for what you love doing: building your business
What is your time worth to your business? Think of this: outsourcing can help you take those hours spent on tasks like processing payroll, figuring out taxes, invoicing, and accounts payable and invest them into improving customer experience and launching new products/services that will boost lead generation and, in turn, your revenues.
We know what it’s like to manage a small business - most of the time, 24 hours in a day are not enough for all the things you have to cover. So why not outsource your internal accounting and bookkeeping services to a trained specialist team and enjoy more time in your working day to spend on key projects that you’re really passionate about?
You’ll have access to cutting-edge technology
Accounting firms always make sure to use the best technology available so that they can provide high-quality services to clients. When you outsource your bookkeeping and accounting, you are able to use these same technologies to ensure accurate record-keeping and make year-end tax planning smooth and easy.
Nowadays, with the introduction of cloud accounting software, you can work together with your service provider wherever you are and you’ll both real-time access to your financial data. Also, collecting, sorting, and storing receipts, chasing documents and manual data entry are all a thing of the past as cloud technologies like Receipt-Bank, Hubdoc and Xero are here to help you go paperless and improve your productivity.
How can we help
As your business grows, you’ll notice that your time becomes limited and more valuable than before. For this reason, focusing on core business aspects should be your main priority and not managing day-to-day bookkeeping.
In short, the “do it all” mentality is a thing of the past that can cost you the success of your business. As Peter Drucker once said: “Do what you do best and outsource the rest.”
Outsourcing services is a cost-effective and time-saving solution for small businesses that want to grow without neglecting their financial statements or their compliance and reporting needs.
Not sure what accounting and bookkeeping services are the right choices for your business? We provide a wide range of accounting and bookkeeping services that are catered to all industries in both Canada and the US. Helping small business owners just like you to figure out what the business needs most in order to maintain its financial health and grow is our mission.
Contact us for a free one-hour consultation and we will customize a plan specifically for your business needs!