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A new business owner may not feel the need to outsource bookkeeping. Many business owners I’ve encountered believe they should not be paying earned money to a bookkeeper. However, they soon realize bookkeeping is a serious role. It is normally a rapidly growing business owner that realizes that they need to have a professional set of books. New business owners ask questions while first starting out. Rarely do they realize how much easier it is to start their business off right with a professional bookkeeper.
Outsource bookkeeping offers added free time to business owners, professional financial reports for further growth, an accurate and up-to-date record keeping for budgeting, and saved money. In addition, outsourced bookkeeping is becoming easier to achieve with the help of the internet. You don’t even need to walk into an office anymore. Bookkeeping can be completed virtually with the help of the cloud and secured data.
Owners of small to mid-sized businesses often take the bookkeeping role on themselves. They may not have a need to hire employees, or they may not want their employees to know their financial status. Sole-Proprietors and Limited Liability Companies often use the owner’s credit and information to grow their company. Therefore, outsourcing the bookkeeping allows the owner to sustain confidentiality with their finances.
Business Ups and Downs
Business fluctuation affects the amount of work a bookkeeper does. An owner, manager, or employee would need to keep up with the demand. Similarly, company growth means upgraded software or programs. An outsourced bookkeeper would communicate any adjustments required for growth. The business would not have to bother themselves with the research or knowledge needed to upgrade or downsize a business’s software.
No Need to Train Someone
When you outsource bookkeeping, there is no need to train a new employee. Bookkeepers are hired to do a job that others cannot; therefore, an owner or manager may not have the ability to train a new bookkeeper. Having a bookkeeper who knows software and other valuable knowledge becomes a quick asset. Above all, hiring the right outsourced bookkeeper saves the company time and energy.
No Added Expense
By hiring an outsourced bookkeeper, the business owner is allowing themselves time to run their business and manage continued growth. Straight hires to a company don’t always work out. When the business owner or someone within the company doesn’t have the time to take on the role of a bookkeeper, the role suffers. So there is often an added expense for someone else to come in and clean up what hasn’t been completed. By hiring a professional immediately, you have the work done right from the get-go with no added expense!
A professional bookkeeper can have your record keeping and financial reports ready for investors, creditors, large purchases, etc. The larger you grow the more important you will realize that having a professional on your side matters. When your sole income is your business and you file a Schedule C, the yearly income tax returns are crucial when purchasing a car, a home, and other large items. Therefore, a bookkeeper can have monthly, quarterly, and yearly financial reports ready for you and your tax adviser or CPA.