Your business is up and running. You’ve hired good employees. You’re turning a profit. Even so, you fret over spreadsheets. You dream about profit-and-loss statements. You have nightmares about overdue quarterly taxes. Does this sound like you? If so, there are some good reasons to consider outsourcing to a small business bookkeeping service.
1. Stay Legal
The Federal tax code is almost sadistically complex and state tax codes aren’t much better. Worse still, errors almost always mean a hit to the bottom line. The complexities only grow as you expand, buy property, and take on more employees. A small business bookkeeping professional will be up to speed on changes to the tax code, which means you stay on the right side of the law.
2. Save Money
Outsourcing your bookkeeping and bill paying can be more cost effective than the alternatives. Say you hire a bookkeeper for 20 hours a week. You’ll pay that bookkeeper for 20 hours a week, whether they have 20 hours of work a week or not. Plus, there are all the hidden costs of having an employee. How much is your time worth per hour? It’s probably a lot more than what you’ll spend on bookkeeping services. When you outsource, you only pay for services rendered, and not additional benefits.
3. Free Up Time
You can always hire more staff or get more money, but time is an immutable resource. 24 hours per day is the allotment, and you can’t get more of it. Many business owners spend at least a few hours a week on bookkeeping. For some, however, it eats up substantially more time than that. Let’s say you spend five hours a week on bookkeeping. Outsourcing to a bookkeeping service frees up around 250 hours per year. In essence, you get an extra six work weeks. Possible uses for that time:
- Small business owners often lack the time to do formal training, let alone develop a training system. Of course, poor or incomplete training leads to sometimes costly mistakes. Use some of the new time for training.
- You can undertake a new marketing initiative. Very few businesses have more work than they can handle. Extra free time lets you focus some energy on bringing in new customers and developing new marketing collateral.
- Spend some time at the gym. While the impulse may be to pour every freed up minute back into the business, staying healthy is also good for the business. After all, if your health goes south, so does the business.
4. Improved Profits
Accountants can do more than just file your taxes. They can also provide financial planning services, which can help to improve profit margins. They can also handle invoicing, accounts receivable and paying bills. As strange as it may sound, bill payment, invoicing and accounts receivable often get neglected in the day-to-day, thousand decisions whirl of running a business. Outsourcing these tasks to a bookkeeping service means they get handled promptly, which translates to regular cash flow and avoiding late payment fees. All of which improve profit margins.
5. Error Reduction
Math errors happen. When it comes to your business finances, though, those errors can be costly or terrifying. The difference between $100,000 and $1 million is one misplaced decimal point. If you’re trying to fit bookkeeping in around everything else, you’re likely to make mistakes and not notice them for a while. A professional bookkeeper is less likely to make errors. They are also better equipped to notice and find errors when they happen.
Running a business is profoundly demanding and, unless you’re trained for it, bookkeeping can magnify the stress of that job. Bookkeeping services offer one way to alleviate that stress, while reducing errors and keeping you clear of tax problems. Your time gets spent on building the business, while a professional worries about forms and decimal points. Contact us today to learn more about how we can help manage your bookkeeping & bill pay services.