60% of small business owners aren’t very confident in their financing abilities.
That makes sense, of course, as accounting is usually a very different industry from a small business’s main focus. Despite that, account is a necessary part of any business which can lead to confusion and errors when people who don’t have training or experience have to take on this momentous task.
There is an option, for those who feel overwhelmed — outsourcing your small business bookkeeping. Read on to find out about the many advantages of doing so.
More Time to Focus
The main advantage of outsourcing bookkeeping for a small business is the fact that the business then has more time to focus on what they’re good at rather than trying to split their attention. Finance can take up a hefty portion of time, so if you’re dedicating some of your own hours to it as a business owner, that leaves less time for what matters.
If you dedicate your bookkeeping services to an outsourced company, all of your employees can focus on what they’re good at. In the long run, you’re likely to see more success for your business as you don’t have to divide your thoughts up as much or dedicate a window to learning something new.
One thing that holds people back from outsourcing bookkeeping services for a small business is the idea of the cost.
They make the assumption that outsourcing a whole department is going to take a chunk of the business’s change every month. While this is true, the hesitation means they’re failing to weigh up the costs of not doing it.
There are two alternatives to outsourcing:
- Employing full-time staff to handle it
- Training other staff to handle it
The first option means that you’ll be spending a lot of money on staff due to salaries and benefits. The second option might mean spending less money, but it means there might be costly errors in the process — as well as errors in the staff’s original role due to them having to split their attention.
Considering these things as a whole, it stands to reason that outsourcing small business accounting services may actually cost you less than trying to cut corners.
This also means more of your budget is open to be spent on other things, or the company’s profits will increase. You can then use the money you would have spent on this on other things, to benefit the company and keep your employees happy.
If you do decide to try and handle the bookkeeping services on your own or have other employees do it, they won’t be able to dedicate all of their time to it. This is not only problematic in terms of making errors, but your business isn’t going to do the best that it could financially.
Dedicated staff means there are always people there to answer your questions. If you want to know how to better save money on taxes or during day-to-day operations, the staff in the outsourced team will be able to help at any given moment, not weighed down by other tasks.
Access to Software
Another consideration is the software necessary to do this job. While bookkeping can be done manually, it would be an extremely arduous task that would take up a lot of time.
The alternative is using software.
Outsourced teams already have access to that software. If you had to get it for your small business, you would not only be paying for the initial cost of the software or a monthly subscription, but for the training necessary to use it. These costs can become very high, as employees may need refresher training and the software may change and add new features over time.
You are not responsible for any software costs when it comes to outsourcing. You don’t even need to know your way around it.
With the training that a dedicated team already has, there’s much less of a chance of errors. This team has been trained, has experience, and has likely worked on a number of small businesses.
This is important because errors can not just waste time, but they can be costly — especially when it comes to things like taxes. They can even put you in trouble with the law if you’re not careful.
Outsourced companies will make sure you don’t have to deal with any of this.
Overall, outsourcing your bookkeeping services will simply alleviate stress from you and the rest of your business. Over half of business owners feel stressed over the course of a given year, and stress is known for having incredibly negative effects on mental and even physical health.
The best way to get rid of this stress is to delegate and make sure you trust the people that are taking on tasks.
You also don’t have to worry about tax deadlines and fines for being late, as someone will take care of the paperwork for you.
Outsource Your Small Business Bookkeeping Today
Overall, there are a lot of advantages to outsourcing your small business bookkeeping. You can save money, make sure your company focuses on what they’re good at, and alleviate stress.
The training, experience, and software that outsourced, dedicated organizations have access to is unbeatable. Once you do it, you’ll wonder how you coped before.
Looking for reliable bookkeeping or tax planning services in Tennessee? Contact us today at Bennett Financial Services for a free consultation.