Does anybody out there actually enjoy bookkeeping?
Accountants, put your hands down. You don’t count.
Bookkeeping is an administrative headache that keeps every small business owner up at night, but in truth, it’s not a task they need to handle on their own. Let’s review four good reasons why a business would want to outsource the bookkeeping. Unfamiliar with the space? Check out our What is outsourced bookkeeping page.
1. You don’t have time
Business owners have enough on their plates without worrying about payroll, account management, and basic data entry. This is one of the primary benefits of outsourced bookkeeping: Business owners hand off these auxiliary tasks to qualified professionals, freeing up their own time to focus on what really matters—growth.
2. You’ll cut administrative costs
There’s a pervasive idea out there that to outsource bookkeeping is more expensive than hiring an in-house team, but this isn’t always the case. Consider all the costs that go into building an in-house accounting team:
- Recruitment and onboarding
- Training time
- Benefits, insurance, and taxes
And don’t forget about the costs of what teams need to actually do the work:
- The software platform itself
- Licensing/subscription fees
- Hardware, infrastructure, and maintenance costs
You get the idea. Outsourced bookkeeping wraps up all these costs in a predictable monthly fee that’s easier for business owners to manage.
3. You’ll build valuable relationships
Bookkeeping is straightforward enough for small businesses, but as a company grows, things get more complicated. This is another benefit of outsourced accounting: Business owners build important relationships with accounting professionals that support growth as their company scales. It’s not easy to put a business’s future in the hands of third-party professionals, but building these relationships early is the best way to find accounting providers who will set the business up for success.
4. You’ll keep the IRS off your back
Particularly for more complicated business models (such as software-as-a-service operations with confusing revenue recognition rules), trusted financial advisors can reduce liability and guarantee accurate reporting. In short, business owners can stop sweating possible tax penalties and trust that their accounting experts will keep the IRS off their backs. From a peace of mind perspective, this is some serious value.
Consider outsourcing your bookkeeping
Bookkeeping is a necessary by-product of a company’s operation—and it should be treated as such. If you'd like more information, learn more about the benefits of outsourcing these tasks to third-party built from the ground up to do the job!