The rise of the virtual community has greatly enhanced the way we do business. This is especially true for business owners when it comes to bookkeeping. It has become increasingly practical to outsource these services.The time saved by outsourcing can be better spent focused on the growth and management of your company.
Why Outsourcing Makes Sense
There are several reasons (beyond the overhead reduction) why outsourcing can make sense for your business. On-site accountants or bookkeepers create a large amount of overhead. From managing software to training and recruiting employees, the burdens of in-house bookkeeping staff consumes valuable resources.
There are a growing number of businesses that have adapted to the virtual, low-cost accounting marketplace. According to the Sage Accountancy Index, almost 75% of accountants predict that online services will become the largest aspect of their working practice in the next several years. What some business owners fail to realize is that there are indirect cost savings that can be attributed to outsourcing your bookkeeping needs.
The Value of Service-based Bookkeeping
Using an outsourced bookkeeping service does not mean buying software and working the system yourself. The human factor and customer service provided is what creates a dynamic working relationship between your business and your bookkeeper. Bridging the gap between people and software is a great business model and something you should consider when selecting an outsourced service.
The largest concern for most business is the security and integrity of their business data. Servers and other areas where financial records are stored should be appropriately secured. When using an outsourced service, there is no need for concern regarding employee access to the important data and the information can be stored electronically.
With regards to electronic storage and transmission, it is good to know what encryption method your service is using. You should always ask your prospective virtual bookkeeper if they log into secured servers and if there is good monitoring of the dissemination of data. If your bookkeeping service allows client access to data from cloud storage, then you’ll want to know what security features are in place to protect against access by third parties and to limit access to yourself or to key members of your business.
These security steps help reduce the risk of a data breach that could cost your business everything. The costs of managing software, server upgrades, maintenance, and important file storage are just some of the many reasons that outsourced bookkeeping services can help save your business money and mitigate areas of concern.
Small Business Growth
Companies that use virtual bookkeepers have been more successful at growing their business, increasing revenue, and generating higher margins. A 2012 article by the ACCA cited the access to a professional, the efficiency of completion and filing of returns, real-time review of their business, and mobile availability as the top reasons for choosing an outsourced bookkeeper. Outsourcing greatly increases the scalability options of your business. You have the option of expanding or cutting back quickly and effectively.
Whether your business is in a growth mode or cost reduction state, the outsourced team can provide you with different plans and the best options to achieve your goals.
Audit and Tax Preparation
Compliance and audit preparedness are other areas of potential cost savings directly affected by a capable bookkeeping service. In terms of accounting, this means that someone is making sure a company’s financial matters are handled in accordance with federal laws and regulations. Running a business is tough enough without the burdening aspect of tracking regulations.
Ignoring these factors can have huge financial consequences for your business. Whether it is payroll or payment processing, the details of mitigating financial penalties and comprehensive compliance can be daunting.
Accurate Statements Make an Impact
Outsourcing your bookkeeping duties to a reliable group can make a significant impact on your growth and profitability. From compliance to regulation updates, virtual bookkeepers have the tools and capabilities to better focus on the complexities of everyday financial reporting.
They are available to explain and help analyze important data in your financial statements to help you make better decisions. Job costing processes improve profitability but are dependent on accurate bookkeeping records and financial statements.
The oversight generated by creating high-quality financial statements and accurate reporting is a key aspect of the fundamental management of any business. It allows for financial planning to be efficient and strategic growth programs to be based on real-time accurate data from your organization.
Outsourced bookkeepers allow you to leverage technology to increase the mobility and scalability of your business. This partnership allows for an increase in expertise and experience to help you plan and implement the subsequent growth stages for your business. The cost reduction and insightful accessibility of this service can be instrumental in furthering your businesses growth and profitability.
The new age of small business ownership is founded in virtual cooperation and teamwork. Don’t let the nuances of daily record keeping and financial reporting hold you back. Finding the right bookkeeper can be a game changer.