When you run a business, you need support. Whether you’re a plumber, an electrician or maybe a baker, there are simply too many tasks to do and not enough working hours in the week. Nobody really wants to work 80 or 90 hour weeks and when you start doing that family life suffers and so does your work because you’re tired. One of the tasks you might not fancy doing at the end of the working day is your company bookkeeping and in this post we’re going to look at the top five reasons why you should be outsourcing your bookkeeping, and it’s not just to give you time to sleep!
Having an outside bookkeeper gives you time to grow. You can concentrate on growing the business without having to do these bookkeeping tasks which can often keep you up at night. They’ll be able to actually save you money as they know what you can claim back where you perhaps aren’t. This allows you to use their knowledge to save money which can go towards growing your business.
As you grow, so can your bookkeeping services. Without having to hire extra members of staff yourself, your bookkeepers can enhance the service they offer you as you grow as a business. This scalability is paramount when you are growing your company as you have the support there to keep all your accounts in order.
This lack of needing to hire an extra person yourself means you don’t need to find money for salaries, sick days or pensions. Instead you pay the external bookkeeper for a few extra hours as required. You also don’t need to worry about training people who then move onto a new job, leaving you to hire someone new and train them up. Not requiring an extra team member yourself means that money can go into different areas of the business which need it more, whilst you still get a top quality bookkeeping service.
Unless you have previously trained as an accountant, your bookkeeper probably knows more about what they’re doing than you. This means that you are paying someone to do a good job, the right way, first time. Delays and errors can cost a business fines and penalties. This actually saves you time and money as the bookkeeper will charge for the amount of time it takes them to look after your books, and your precious hours are spent doing things you’re good at, not haphazardly putting together accounts which might not be 100% correct.
If, further down the line, you ever think about selling the business, the buyer will want to look at just how the company performs. Having a correct financial history, written up by a professional bookkeeper shows your business in the best possible light. The value of your company will also be more as you aren’t having to pay for an internal member of staff. These books are also important if you were looking at borrowing extra money to scale the business or buy new machinery on finance, for example. A higher valuation of the business can often deliver better terms on your lending deal.
Outsourcing bookkeeping allows business owners to do the jobs that made them want to set up the business in the first place, whilst leaving their accounts in professional, competent and expert hands.