It is not surprising to see many businesses struggling to thrive in this challenging landscape. Today, due to the pandemic, they feel more uncertain about their prospects compared to a year ago. Business owners need to focus on business development and not be distracted by looking after their financial record. We discuss eight reasons why outsourcing bookkeeping can make your business more profitable:
1. High-quality, timely bookkeeping services
Bookkeeping is a fairly routine task, but it still requires in-depth attention for accuracy. An employed bookkeeper will almost certainly not be skilled in all the tasks which can be undertaken by an external bookkeeping team, for instance, credit control, business planning and budgeting.
Due to this, they may end up having to look for additional resources to undertake these tasks. When your business signs up with a bookkeeping company, you benefit from the services of a team that not only has varied experience but also follows strict quality control processes to deliver timely results.
This saves you from the trouble of having to search for, recruit, and train bookkeeping professionals for your business. Outsourced bookkeeping services assure a quicker turnaround time since the focus of such service providers is on bookkeeping and nothing else.
2. Flexibility to take on more clients
As a business owner, if you are capable of doing your own bookkeeping, how long do you think you spend on it each week? 5 hours? 10 hours? Now imagine if you could utilise this time in improving your services and in client building relationships.
We are sure if given an option, you would outsource it to an expert and do what you know best, i.e, run your business. By taking help from an external bookkeeping service provider, you have free time on your hands which can be invested in value-added jobs.
3. Higher cost savings
When you work with a bookkeeping company, you no longer have to incur the costs of maintaining an in-house bookkeeper. That translates into considerable financial savings for your business as you don’t need to take care of the salaries, equipment, and training expenses of the bookkeeper. The bookkeeping company manages it all.
The money saved can not only be re-invested in expanding your business but also help in improving the quality of your existing offerings. Moreover, additional money can assist in offering more competitive prices to your clients.
4. Time saved by leaps and bounds
Just because you run a business does not mean you are a trained bookkeeper. In which case, you could be spending double (or triple) the hours to bring your books of accounts up-to-date. That is time poorly invested.
A bookkeeping company, on the other hand, ensures the job is done quickly, without any distractions or confusion, because of their expertise on and use of the latest, time-saving technology, such as Xero and KashFlow.
In the end, you not only have the satisfaction of putting your financials in the hands of qualified professionals but also are able to gain insights into your business operations – all through bookkeeping. Outsourcing helps save time and frees you up for more critical tasks.
5. Transparent communication with the team
An external bookkeeping expert could be based anywhere – in your neighbourhood, city, country, or in a different part of the world. But that should not stop them from maintaining close contact with you through email and online communication apps.
The flexibility enables them to reach out to you on an immediate basis should there be a need. If you ensure that your bookkeeping company is registered with a professional body, for example, the International Association of Bookkeepers or the AAT, you can be certain that they will comply with all legislation and keep your data safe.
6. Zero loss of control
While many businesses fear that by outsourcing, they will lose control over their books of accounts, this is not true. A reliable bookkeeper will provide regular updates on how the tasks are coming along.
They also have stringent processes in place to ensure that the data is secure throughout the project. That will allow you to retain control over everything and oversee each stage of the bookkeeping process as the team completes it.
7. Accurate information on your fingertips
Bookkeeping mistakes are common and could have massive repercussions. For instance, many small UK businesses often under- or over-claim VAT. This could lead to penalties, potential cash flow problems, or worse, an HMRC investigation.
Similarly, expenses can get wrongfully coded to the balance sheet code rather than to the profit-and-loss sheet. This can impact the profit figures, which could further lead to flawed business forecasting.
An experienced bookkeeper would not only ensure accurate, quality work but also use tools such as QuickBooks, KashFlow, FreeAgent and Xero, so that you have access to accurate business data online – 24/7.
8. Seamless access to tax planning and advice
Unfortunately, the HMRC is always watching, which is why you should ensure your books of accounts are properly managed. Bookkeeping professionals prepare financials that will keep your business compliance with the HMRC regulations.
Depending upon the expertise of your bookkeeping company, you can even get their support on tax planning and advice.
Good bookkeepers will keep a record of your receipts and expenses, track accounts payable and receivable, and also produce a balance sheet – all of which will help you plan an efficient tax strategy and ensure your business management is based on accurate financials.
Summing it up
Without a doubt, you should outsource your bookkeeping to experts. This will enable you to offer more value-added services to your clients. Expanding the service portfolio not just drives more revenues but also strengthens client relationships.
Thankfully, Agility Bookkeeping is fully equipped to help you transition to modern, paperless and outsourced systems and let go of routine bookkeeping jobs. Do you want to hop on a call to discuss this? We would love to chat with you!