Evidence is out there that more businesses outsource bookkeeping to bring more sanity and keep things in order. One media outlet covered the concept earlier this year with reports of how businesses now outsource their bookkeeping after attempts to do the books on their own. The companies providing the outsourced bookkeeping services made it clear why they've become popular: The business owners hit a pain point thinking they could handle everything by themselves.
Those going into business for the first time think they can handle their financial books without help. They finally realize they can't once something goes wrong. Even if they hire an in-house bookkeeper, problems still occur that sometimes forces a business owner to do their books alone to prevent chaos.
So why should your business outsource bookkeeping tasks? Take a look at many of the problems you could face by keeping the books yourself. As you travel for business expansion, you'll soon start to see why outsourcing is a better option for all business functions.
Keeping Your Bank Statements Balanced
As your business grows, you're going to have more complexities in money coming in and going out. Accounts receivable and payable can easily get confused as you have to deal with issuing credits, applying transactions to multi-phase projects, and more.
If you take those things with you on the road while you travel, you could easily get distracted and leave something out. Calling employees for information could also lead to discrepancies if you receive different answers regarding work performed.
This makes it difficult when you want to spend money. Ultimately, you could overspend and end up with several overdrafts that places you in temporary financial jeopardy.
When you outsource, you have remote access to your financial information so you know exactly what's going on every hour of the day. Your outsourced team has the time and focus to make your bookkeeping the center of importance. While it's perhaps difficult for you to realize you can't do it all yourself, you should never take risks with your bookkeeping.
Missing Tax Benefits or Payments
Your bookkeeping system needs to be efficient. As transactions are recorded in your accounting software, are they booked to give you the biggest bang possible on your taxes? When you book something incorrectly, it changes your tax liabilities.
Not having accurate figures could also affect you in possible tax breaks. With an outsourced bookkeeping team, you have complete financial records available at any time through the cloud. You'll have a thorough financial picture so you won't end up dealing with the IRS later, which means two-hour phone wait times (and repetitive waiting music).
Dealing with In-House Bookkeepers
You've perhaps had no choice but to hire an in-house bookkeeper because you realized you were making too many mistakes doing the books alone. Having one person do it for you is extremely expensive and could still lead to excessive mistakes. Besides the fact that you need to hire, train, and manage them, you also need to work through the drama that comes with employees having bad days. When you outssource, you avoid all of that and save money at the same time.
Contact us here at Ignite Spot to learn about our own outsourced bookkeeping services and how we can assure honesty, integrity, dependable support, and guaranteed accuracy.