Confused about how outsourcing your bookkeeping services to the experts can help your business? I have explained it in our blog.
Think about it – the reason you went into business is because you have the skills, drive and vision to make a success of what you do, right? It certainly wasn’t because you intended to spend many hours filing receipts and looking at expenditure on a weekly basis. After all, Sunday evenings should be for relaxing with loved ones, not updating spreadsheets.
As laborious as this might seem, keeping on top of your bookkeeping is essential. Many businesses that fail are attributed to not being aware of their figures – the incoming and outgoing. And when you realise that the failure rate is an incredible 96% down to a lack of visibility of their numbers, the importance of bookkeeping services for small business operations becomes apparent. That’s where Granville Bookkeeping Services can help.
You are more than likely familiar with online accounting software such as QuickBooks and Xero. While these packages can generate profitability reports instantly, removing the need for spreadsheets is of little worth if the figures are inaccurate.
To make informed strategic decisions regarding the direction of your business, it is paramount that you monitor its performance. Real-time visibility of your finances and a grasp of what the numbers mean is vital. As the saying goes, fail to prepare and prepare to fail.
Indeed, accurate bookkeeping and accounting are essential, but they shouldn’t occupy all your time. Your focus should be on developing your business, growing your client base and providing the best service you can. In other words, do not underestimate the value of your time.
By letting go and giving control of this key business function to someone else, your growth targets are far more attainable. You won’t grow if you are sitting at your desk doing your own bookkeeping.
Outsource your bookkeeping, and the benefits are numerous:
Client engagement
You are likely more than capable of doing your bookkeeping, but it is not the best use of your valuable time, as we have already established. Imagine if the time you spent on bookkeeping each week could be spent on improving your products/services and adding value to your client base. This will help maintain happy clients who will choose to stay with your company for longer, increasing the likelihood of generating more customer referrals.
Increased focus and efficiency
Bookkeeping can be an added distraction, so by outsourcing, business owners can focus on actions to help achieve business growth objectives. If it doesn’t directly impact your overall goal, you shouldn’t be wasting your valuable time on it. You, therefore, will not be surprised to discover that one of the key reasons for recommending is that it helps you increase your efficiency and focus.
Accuracy and risk management
Be honest; you are not a trained bookkeeper. Therefore, you will probably spend more than double the hours a trained bookkeeper can to bring your accounts up-to-date. Not only will a trained, outsourced bookkeeper be more efficient, but you can bet they will be more accurate too. Bookkeeping mistakes are extremely common, and the resulting consequences can be a massive headache for you and your business. The under-claiming and over-claiming of VAT are common mistakes small businesses make. It can all lead to HMRC investigations, penalties and potential cash flow problems. A standard error is expenses being coded to the balance sheet rather than to profit and loss, resulting in overstated profits, leading to significant decisions are based on incorrect figures.
Trained bookkeeper
Outsourced bookkeeping services give you and your business access to highly trained professionals who, as lifelong learners, are constantly being educated, honing their craft. This knowledge base works hand-in-hand with software solutions to bolster the process. The help of a bookkeeping expert ensures your records are always the best they can be. It makes sense to leave the experts to what they are good at, leaving you to focus on what you are good at.
Latest and most outstanding bookkeeping systems
An outsourced bookkeeper has the latest systems, technology and processes at their fingertips. By utilising this newest software available on the market, your bookkeeping processes will be efficient and conducted in a recognised manner – no more spreadsheets and receipts gathered in shoeboxes! Remember – better visibility of your numbers will lead to better, informed decisions.
Get things done, even when you aren’t working
When handling your bookkeeping in-house, you must be prepared to make up for lost time when you are on holiday, or worse, sick. With the use of bookkeeping services, you need not worry about how you’ll find the time or fit it into your busy schedule. An outsourced bookkeeper will meet deadlines regardless of your circumstances.
You’ll save money
Some business owners avoid outsourced bookkeeping services because they believe they are saving money by doing it themselves. However, the truth is that bookkeeping services for small business ventures prove time is worth more than having your bookkeeping in-house. You should be spending time developing and bringing in new business, not coding transactions.
No need for an employee
A small business does not need an in-house bookkeeper. By hiring outsourced bookkeeping services, you can avoid paying the many overheads associated with an employee – such as holiday pay, payroll tax and training costs. This helps to improve your profit margin.
Growing your business
Outsourced bookkeeping services free up valuable time to focus on business growth. Knowing accurately and reliably your finances is key to making the right business decisions. Using bookkeeping services for small business ventures puts you in a better position to achieve your goal. For your business to be successful, you need to understand its cost of sales and any fixed costs. With this knowledge, you can measure the profitability of your business accurately. This starts with good bookkeeping. Nowadays, the widespread availability of cloud technology makes it easier than ever to outsource bookkeeping tasks, and the benefits are obvious. Risk factors are lower; it is way more efficient and very cost-effective. With the extra time, you can broaden your client base, helping you reach your growth targets.