While the success of small businesses depends heavily on various factors, it’s undeniable that much of the decision-making processes rely on their current financial status. As such, bookkeeping invariably becomes a part of doing business and maintaining profitability.
As a small business owner, you’re likely burdened with the challenges that come with bookkeeping. After all, a single mistake could mean fatal consequences to your business. It’s integral that every single detail is done right.
Seeing as the burden of the entire business falls upon your shoulders, you’ve likely weighed your options: continue the tasks yourself, hire an employee to accomplish it, or allow a third party to take over. Choosing to do it yourself will render you unable to focus on much else while hiring a full-time bookkeeper can be expensive—as a small business, there isn’t much room to stretch for costs.
While outsourcing merits its own drawbacks, allowing a third party to take care of your accounts seems the most plausible. Given the rise of the digital revolution, outsourcing bookkeeping services has been increasing in demand. Here’s why you should look into outsourcing, too:
Reason #1: It boosts productivity levels
Running a small business is never easy—handling business processes and operations from the ground up requires a ton of skill and effort, so you’re likely working with a team more than willing to take up a mix of roles. Such settings require employees to take on tasks outside of their job descriptions, but ultimately, these roles allow the company to move forward.
While this may be the norm, your job as the owner is to always strike a balance. Adding more tasks to an already brimming workload will detract from the critical tasks they need to accomplish—the tasks you hired them to do.
You’ll also inspire dread and fatigue rather than motivation, so leave bookkeeping tasks to the experts. Allow your employees (and yourself) to shine in what they do best! By doing so, you save time and up engagement—the ultimate recipe for success.
Reason #2: It allows your small business to become more flexible
Starting out a business is always difficult. You may be walking on healthy and established grounds, but the very nature of the business landscape is risky—expect to have turbulent months, with sales dropping and demands to fluctuate. The amount of work needs to be done will either increase and decrease, meaning that your employees will scramble to finish endless tasks, and the next month, you’ll all be enjoying some downtime.
This very nature has made the notion of contract workers very attractive for small businesses, but employing the same tactic to bookkeepers can be detrimental. It’s an unrealistic option for businesses, especially considering the amount of detail and analysis needed to keep your records intact.
Hiring a full-time bookkeeper, on the other hand, means you’ll be paying monthly payroll regardless of their productivity levels. By outsourcing bookkeeping services, however, you allow your business enough flexibility when it comes to budget. They’ll scale to meet your demands, no matter how challenging or easy it may be.
Reason #3: It allows you to keep careful track of business write-offs
Taxes for entrepreneurs can be difficult to deal with. Tax season is always a tumultuous time of year, but as long as you have good documentation of expenses, you’ll be able to navigate through it without a hitch. A bookkeeper will be able to help you keep track of all your expenditures, with all invoices, receipts, and other information ready. As a crucial time, every detail matters—tax returns are a huge deal for small businesses, so you’ll want to work with a professional.
By outsourcing your bookkeeping services, you not only dodge tax season bullets, but leave out of it with extra cash for new ventures. Instead of working with contract employees or mere employees are given extra tasks, you allow your business to enjoy the extra cash flow.
The Bottom Line
It’s undeniable that bookkeeping is extremely important—ensuring that you get everything right could make or break your business, and finding the right bookkeeper is a huge part of that. You may be tempted to perform the tasks on your own, but a professional accountant will be able to benefit your business in more ways than one.
That being said, for bookkeeping and accounting services in Boston, A4E is the place to call. With over 50 years of combined experience, we’ve committed ourselves to help small businesses grow. Allow us to focus on numbers while you do what you do best. Consultations are free, so don’t hesitate to reach out to us for more information.