When considering outsourcing bookkeeping and accounting services, business owners have many benefits than they think. However, managing sensitive financial information is often placed on just one person, posing a risk of fraud and data loss.
An outsourced bookkeeping service can eliminate this issue. In addition to taking on the burden of accounting duties, they also oversee payroll – which is not easy.
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Reducing Costs
Cost savings, minimizing risk, and building resilience are the key reasons businesses outsource some accounting and bookkeeping functions. A reputable agency like Remote Quality Bookkeeping will have team members who are experts in the processes that your business needs to ensure they deliver the best results.
With a contract bookkeeper, you only pay for the time they work on your books and won’t have to factor in salary costs, office supplies, equipment, and other overheads. You’ll also save on employee hiring, such as maternity leave, annual leave, holiday pay, and workers’ compensation.
Lastly, it will take the stress out of tax season and ensure you comply with all the rules and regulations. This will free up time for your staff to focus on sales, marketing, and other core business operations.
Leaving More Time to Focus on Your Business
Many national bookkeeping firms are staffed with professional accountants and bookkeepers who specialize in their work. They should understand your business and its needs well to provide accurate financial reporting and guidance. They also may have more experience with handling critical reporting periods.
Contracting out your bookkeeping and accounting tasks will allow you to spend more time growing your business and increasing revenue. Instead of tracking expenses and closing the books, you will focus on networking, creating business strategies, and ensuring your customers are happy. The company you choose to handle your business finances should also be able to provide proper financial ratios and KPIs that can help you track your performance. This will give you insight into your business’s needs to grow and thrive.
Increasing Efficiency
In addition to the traditional human capital costs associated with maintaining employees (salaries, health insurance and office space), additional overhead costs can be eliminated by outsourcing your bookkeeping and payroll services. With these fixed expenses out of the way, your company can direct more financial resources to revenue-driven processes.
Managing both payroll and accounting responsibilities in-house can be challenging. While software programs make the process much easier, mistakes still happen – for example, misreading a W-4 can result in almost no withholding and unexpected tax liability.
Hiring a reputable remote bookkeeping company can eliminate these errors and ensure you meet all your business’s tax, invoice, and payroll deadlines. This helps ensure a smooth operation and allows in-house staff to allocate more time to the strategic processes that help the company grow.
Enhancing Security
Virtual bookkeepers not only sort income and expenses but also provide financial reports that you can use to make better decisions about your business. These reports include cash flow histories, profit and loss statements, and statements of financial position. For example, these insights can help you decide whether to invest more money in a particular customer or client. They can also provide information to help you decide when to hire new employees and how much pay they should receive.
Keeping up with the needs of your business requires a lot of time and effort. Outsourcing your back-office functions allows you to dedicate this time to your business. In addition, cloud accounting platforms enable you and your outsourced bookkeepers to access financial data/records 24/7.
The Reduced Risk of Fraud
Working with a reputable bookkeeping provider will ensure you have the proper checks and balances. This will reduce the risk of fraud and make it much easier to spot any fraudulent activity if it does occur.
Having the proper checks and balances in place is crucial, especially when dealing with financial data. Outsourced bookkeeping providers have the training and tools needed to help protect your business from potential security breaches.
Hiring a professional bookkeeper can free up your time to improve your products and services and attract new customers. This will ultimately increase your bottom line and help your business thrive. You can even use some of the money you save on outsourcing to hire more employees to serve your customers and grow your business.
