Small business tasks are never ending. In fact the majority of business owners find themselves working 80 plus hours a week. Even worse, these hours are spent on client services rather than on practice of growing the business itself. In order for a business owner to work on their business instead of in their business, they must strategize and systematize the outsourcing of tasks that are mundane and that others can handle. Bookkeeping is one of those such tasks.
Outsourcing your bookkeeping will allow a small business to focus on growing, acquiring more customers, and scaling rather than spending time managing spread sheets of numbers. Besides freeing up immediate time, here are 7 reasons why you should outsource your bookkeeping services to a professional.
1). A Time Saver for Small Businesses
Accountants and bookkeepers will tell you that record keeping and tracking can be a full time job. With a myriad of more important things to do, it just doesn’t made sense for the boss to be doing this task as well. Trying to get the books done on the weekends or late in the evening often leads to procrastination and failure to stay organized. The cost of having a professional handle the books can save tremendous costs in the future.
2). Gain Flexibility in Staffing and Maintain Continuity
You can outsource a bookkeeping project or have your entire operation fulfilled by an outside agency. If you have staff working on your books and they go on vacation or family leave, you can have someone on standby to pick up the slack. Having an outside agency handling the books can avoid bottlenecks when the existing staff is overworked and doing multiple tasks in the office.
3). Consulting the Experts
Not everyone has the experience, skill and temperament to implement and manage bookkeeping systems. Although it is an essential part of managing a business this important task is better suited for professional bookkeepers. They are able to keep precise and accurate records while making it user-friendly and accessible.
4). Cash Flow Improvements Through Proper Bookkeeping Practices
We all have read about or know someone who seems to be extremely successful in business who has suddenly found themselves penniless and bankrupt due to financial failure. Professional bookkeepers are able to help small business owners optimize their cash flow. They can stay on top of the various methods to help owners manage any shortfall.
5). Gain Increased Efficiency Throughout The Operation
Forget about haphazardly trying to monitor income and expenses or attempts to learn a new computer program as your business grows. Outsourcing to a professional helps you to manage your resources effectively. This is an excellent way to avoid the inefficiencies due to bookkeeping problems such as double billing or overpaying.
6). Develop Sound Budgeting Practices
Having a professional bookkeeper and accountant on the team helps to keep the company in tip top shape. Because budgets are a necessary part of running a business, there is increased efficiency in cash flow and financial management due to proper budgeting allocations. This often minimizes costs and increase revenue in the long run.
7). Sound Financial Advice
Having professional resources in the accounting area can help to inject a fresh approach to a tough financial problem. Involving the financial staff means receiving objective advice to help shape goals and improve the overall picture.
In the end your business has a core competency which may come in the form of a service or product. As soon as you begin to spend time away from what you do best, your business growth is limited and slows. To ensure that you scale operations, all business experts will tell you to delegate mundane tasks to experts who know and enjoy handling them. Bookkeeping is certainly one of those tasks. For more info how Cain Advisory Group can help grow your business, visit our small business solutions page to see how our experts can handle the 5 most painful aspects of any business.