With the global recession looming, a vast majority of small businesses are not in a good position to hire more employees. As a result, business owners are compelled to perform various business functions, including bookkeeping tasks.Although this may work in the early stages of their business, it's not a good long-term solution. In the latter years, their financial errors will resurface and wreak havoc on their cash flow.A skilled bookkeeper has a specialized skill in accounting that an average business owner can’t learn quickly. Their duties usually involve recording financial data into general ledgers and keeping track of a company’s sales and expenses.If you plan to hire a professional bookkeeper but worry about the labor costs that come with it, then you should start outsourcing bookkeeping services to a reliable service provider.
Here’s Why You Should Start Outsourcing Bookkeeping Services for Your Small Business
1. Concentrate on your core business functions
You’ll discover that as your small business expands, you spend less time focusing on your core business functions and more time managing your finances. Outsourcing bookkeeping services allows you to concentrate your time, effort, and resources on other important aspects of your business. You can focus on high-ROI activities like sales and marketing, networking, and customer relationship building.
2. Eliminate bookkeeping errors
Companies with inexperienced bookkeepers are prone to bookkeeping errors. Mistakes like inaccurate income reporting may cause an overstatement of income and mislead a company’s operating profit margin calculations. If you have no accounting background and cannot manage or train a bookkeeper, then it’s best to hire a service provider
A reliable outsourcing company with bookkeeping services has a team of bookkeepers that have been vetted and are under the supervision of even more experienced bookkeepers. In addition, they have established QA processes and tools to carry out bookkeeping activities effectively and accurately.
3. Reduce your labor costs
The cost of hiring a full-time bookkeeper is higher than the cost of outsourcing accounting services like bookkeeping and payroll processing. When you outsource, you can tailor the work hours and the number of projects to your needs while avoiding usual labor costs like benefits, insurance, payroll taxes, and paid leaves. You are also not required to provide a workspace, office supplies, computers, or software, as your outsourcing partner already covers these requirements.
4. Access the latest bookkeeping software
Most bookkeeping outsourcing services come with the latest bookkeeping software. If you wish to use automation tools like Quickbooks, Sage, Visma, Xero, Microsoft Dynamics, and SAP without paying additional fees, you better partner with a bookkeeping outsourcing company.Moreover, you get access to their robust cloud-based bookkeeping system. You can view your data from any location anytime because the entire process is managed on a cloud-based platform. You can also add your expenses and revenue and analyze your finances easily.
5. Get full-service accounting
It’s crucial to keep in mind that an in-house bookkeeper only performs bookkeeping functions. When you outsource to a service provider, you work with a full-service company similar to big accounting firms.
Compared to a single bookkeeper, outsourcing service providers offer a wide range of services. From accounts payable, financial statement preparation, revenue accounting, and more, you have a partner that oversees your financial activities. You can also request additional services to help you manage your business growth sustainably.
6. Prepare for the tax season
Many business owners scramble to organize their accounts and ensure that their financial information is accurate during the tax season. If your business doesn’t have skilled bookkeepers, you’re more likely to commit underpayment of taxes and poor record keeping.By outsourcing your bookkeeping functions, you can ensure your procedures are consistent with tax laws. Your service provider can also promise to do your bookkeeping before tax season. With their assistance, you can protect your business from penalties and keep it up to date with the current tax trends.
7. Scale your internal team
As your business expands, so will the amount of bookkeeping activities your in-house team will do. For instance, you might find yourself hiring more staff if your bookkeeping chores are too overwhelming to be handled by a single staff. Before you start hiring a full-time bookkeeper, consider partnering with an outsourcing service provider.Outsourcing companies make it easier for small businesses to integrate additional resources into their business operations. They handle the recruitment and training of your offshore team so you don’t have to worry about their performance.In addition, they offer hourly rates for their offshore staffing solutions. It can save you more money because you can schedule only the number of hours and employees you need.
8. Get real-time financial reports
Business owners may not always have the data they need when making critical decisions on the company’s finances. What happens when your in-house bookkeeper is on leave, and you need data for your financial reports? You don’t have to wait too long to access your financial reports when you partner with a trusted service provider.
Having real-time financial insights is among the top reasons why you should start outsourcing bookkeeping services for your small business. Your service provider can create dashboards to provide visibility into your financial reports, enabling you to make better decisions. You can also review your profits & losses, balance sheet, and cash flow history whenever necessary.
9. Keep confidential data secure
Nowadays, many small businesses turn to cloud accounting so their employees can use bookkeeping software from different devices and locations. They even permit their staff to carry and use their personal gadgets wherever they go. However, it’s possible that these devices lack security protections and are at risk of being breached.If you want to add an extra layer of security to your bookkeeping, you should partner with a trusted service provider. They have advanced security controls to safeguard your confidential data, including your customer’s information. Also, they can keep all devices on your network protected and up-to-date with the latest antivirus and firewall software.
10. Improve accuracy in your bookkeeping
Inaccuracies in your company’s bookkeeping happen when your team is not properly trained to keep books up to date. Too often, it results in late payments, missed income, and penalty fees. If you want to improve the accuracy of your company’s bookkeeping, consider working with a reliable service provider.A professional bookkeeping service provider has extensive experience analyzing unique recordkeeping requirements for a wide-range of industries. They are powered with industry-leading tools to maintain accurate records of all your transactions. In addition, their automation procedures can streamline some of your repetitive processes that result in inaccurate book reports.
Why Should You Start Outsourcing Bookkeeping Services to the Philippines?
Outsourcing bookkeeping services to the Philippines allows you to save up to 70% on your labor costs. This is due to the country’s low cost of living and competitive wages that attract multinational companies like Microsoft and Google. Apart from cost-savings, you’ll also work with Filipinos known for their hospitality and superior English and literacy skills.KDCI, an Ecommerce outsourcing company based in the Philippines, offers offshore staffing solutions for small businesses ready to scale. We have a team of certified public accountants who can optimize your finance and accounting processes for accuracy and efficiency. We can help you better manage your financial records so you can generate better insights to grow your business.Are you ready to outsource your bookkeeping function? Click the button below to get started.Contact Us
