Bookkeeping is an essential part of maintaining and growing a business. Detailed records of fi-nancial transactions dating back to the first penny spent will allow you to have an accurate benchmark of your company’s revenue and make strategic decisions regarding future income. While you could handle this responsibility, outsourcing this job to a trained accountant often makes more sense.
Pros of Outsourced Bookkeeping
Hiring an accounting service to handle your books is often more cost-effective than hiring an in-house employee. There isn’t any overhead for you to cover — such as paid-time-off, health in-surance, retirement, vacation and sick days, and workers’ comp.
While you may understand basic financing, it’s less likely for a trained professional to make mis-takes that could end up costing you more in the long run. If you also need them to handle payroll and invoices, you can ensure your bills and employees are paid on time. This prevents late pay-ments and fees and having workers quit out of frustration, resulting in time and money training new individuals.
Frees Up Time
Quality and accurate bookkeeping require multiple hours each week. As the business owner, there’s already a lot on your plate, and taking time away from the core function of your growing company can be difficult. Outsourcing this work allows you to spend more of your day on how products and services can be improved and to focus on building relationships with prospective clients and customers.
Offers More Accurate Reporting
Accountants do more than enter data, they also evaluate receiving and payable trends, look for issues in expenditures and cash flow, and offer advice for growing income. With their help, you’ll always have advanced notice of potential lulls or growth periods in the market. You will also be kept informed of any strange spending, which will allow you to have more control over internal affairs without directly overseeing all financial aspects of the business.
Cons of Outsourced Bookkeeping
When you use an outside service, there’s always the potential for paying more for the same work as time goes on. Sometimes, this is because the business changed, but it can also result from hidden fees you weren’t initially told about. Picking the right company is helpful; good companies inform you of their fees, and there are no hidden fees; if you are ever unsure, feel free to ask.