Can I safely outsource my bookkeeping?
During a recent networking event in Santa Rosa I received the above question. Needless to say, this is one of the questions I've received most frequently over the last 20 years as a professional bookkeeper and Enrolled Agent. And, though I can say "Yes" without hesitation, it is a very important question and needs some explaining.
So, let’s first contemplate what most business
owners consider as “outsourced bookkeeping services” and then look at some of the benefits that you should consider during your decision making process.
The internet and the consequent development of the internet community has forever changed the way in which we do business. One of the most significant changes is the internet has brought us within “arms-reach” of professional service providers that can help us with the day-to-day operation of our business. This includes backend business services such as bookkeeping.
Although most business owners just want to focus on running their business, they understand the serious consequences of neglecting their businesses financial administration. Therefore, they are more than willing to hire someone else to take care of it, in other words, to help them keep and maintain good bookkeeping records. How else will they know how their business is doing, if they are operating at a profit or loss, or what to report to the IRS?
Though it may be a little uncomfortable at first to trust an outside entity with your finances, there are too many advantages to using outsourced bookkeeping services in Santa Rosa to ignore it.
1. Saving You Time, Saving You Money
Using the services of a professional bookkeeper could provide you with an immediate return on your investment as it saves you time – and, as we know, time is money. I’m surprised at how many times business owners will delegate their bookkeeping function to a junior staff member who have very limited bookkeeping experience and almost no knowledge of sound bookkeeping practices.
If you do not have an intimate knowledge of the accounting process and what it entails, the time spend on entering transactions and figuring out financial statements could be a huge loss. Though it may seem like an added expense in the beginning, the rewards soon far outweigh the cost.
2. Accurate Records
Recruiting the services of an experienced and professional bookkeeper will ensure that your financial records and statements are accurate, every month!
Accuracy and consistency may be two of the most important factors when it comes to your employees, your payroll and tax expenses. Your bookkeeping service will record all transactions, keeping things on track, making sure employees are paid correctly and on time and all payroll taxes have been paid over. Penalties for late tax payments can fast become very expensive.
3. Virtual Bookkeeping Services
Your outsourced bookkeeping services work on your schedule and they do not even have to be in your office or come to your office. Bookkeeping technology has become so advanced that all your transactions can be accessed securely online, alleviating the need for an additional full-time employee (FTE) on the premises.
4. Agile Business
Another less considered benefit of outsourcing your bookkeeping is a business’s ability to expand or cut back on almost a moment’s notice. Whether you’re looking to expand your business or lower spending, having access to an experience advisor, providing you with relevant alternatives will help you achieve your goals. Outsourcing provides you with a flexibility that your in-house bookkeeping department just can’t provide.
Outsourcing your bookkeeping services provides you with a reliable source to keep close track of your accounts receivable and accounts payable, making sure that payments are made and received on time thus eliminating penalties and interest payments.
Another benefit is access to new software and the knowledge to use it immediately. Outsourcing your bookkeeping services to a professional and experienced bookkeeping firm gives you immediate access to the latest software and the skillset needed to use it to full capacity.
Outsourced bookkeeping services in Santa Rosa? Making the decision to outsource your bookkeeping
services is, from my point of view, a smart business decision, especially if you are growing. Ultimately, having
your financial house in order helps you to better manage your cash flow and
capitalize on possible opportunities in the market.
Stephanie Horne is an experienced bookkeeper and Enrolled Agent. She is the owner and founder of Horne Financial Services in Rohnert Park, California along with this website and has over 20 years of in person, virtual and outsourced bookkeeping/accounting and tax preparation experience with businesses of all sizes.
Her love and passion is to work individually with business owners and families to help alleviate any financial stress or concerns by helping them to understand and have better control of their income, expenses, cash flow, and tax liabilities.
Please subscribe to my monthly newsletter, Bookkeeping Basics E-zine. It tells you each month about the new information that I have added, including some great tips and advice from myself and other Bookkeeping Basics readers.