Why Outsourcing Bookkeeping is a Must for Successful Small Businesses

Outsourcing Bookkeeping

By: Whitney Hodge

Published: July 2, 2020

When you first started your small business, it was probably fairly easy to keep your books. Money in, money out, right? Then, you started to see an exponential growth in sales. Maybe you quickly found yourself struggling to keep up with the books. And that, in turn, made it harder to accurately track and predict your revenue and profits.

Maybe you’ve considered outsourcing your small business’ bookkeeping. After all, you didn’t get into business for the accounting work! An expert can help you get a better handle on your books and boost your business’s success.

Ensure your privacy.

Having a member of your team or community handle the books can lead to security vulnerability issues and conflicts of interest. Ideally, you want an impartial third-party to manage your books and have access to your financial records. That’s why outsourcing your bookkeeping can give business owners like you incredible peace of mind.

Keep your records accurate.

Bookkeeping is a very specific, unique skill, and if you don’t have professional training in the area, you could be opening your financial records up to errors (and IRS scrutiny) by attempting to do it yourself. Bookkeepers are specially trained to manage expenses, income, cash flow statements, and everything else that goes into a small business’s finances. If you feel overwhelmed just reading that sentence, you need to outsource your bookkeeping.

Scale up your business.

As you start to scale, you typically feel the crunch of increased financial transactions and records. Bringing a bookkeeper in at an early stage can help you better accommodate this transitional period: there’s no minimum revenue needed to hire a bookkeeper!

Be prepared for anything.

Whether you’re filing taxes or applying for a loan, you’ll need accurate, easy-to-parse records. Without a reliable, standardized bookkeeping system, you may not have the records you need to obtain a loan or undergo an audit. Play it safe by hiring an expert to manage your books. You’ll also get valuable help in paying your bills on time and being better equipped to handle emergencies.

Save money.

Yes, it costs money to outsource your bookkeeping, but you’re also saving a lot of time, which, as they say, is money. When you and your team aren’t tied up in bookkeeping tasks, you can devote your energies toward sales, marketing, customer support, and other key aspects of your business. And let’s face it, bookkeeping is not for everyone. You don’t want to be drowning in administrative work that takes you away from the core elements of your business that you excel in. Being the boss doesn’t mean doing everything yourself.

Rely on expertise.

The more complicated your books get, the more training they require to keep, and that might not be something you have in your or your team’s skill set. Outsourcing to a bookkeeper ensures that you’ll get quality service that doesn’t require extra training on your part. Remember, your team’s energy is better focused on growing your business!

Avoid embezzlement.

The sad truth is that some employees can’t be trusted. Give them access to your financial records, and you open your business up to embezzlement and fraud. A third-party bookkeeper is impartial enough to provide quality service with no motive to threaten your small business’s financial security. Don’t forget, specialty bookkeeping services have multiple protections in place to ensure that your business isn’t vulnerable to a loss.

Set your business up for lasting success.

Ultimately, a good small business bookkeeping service is crucial to the success of your business. Companies that map out their expenses and cash flow on an annual basis have a 36 percent survival rate; by contrast, companies that do so monthly have an 80 percent survival rate. Do you have the bandwidth to handle tracking, analysis, and predictions in-house for a monthly financial plan? The truth is hiring a bookkeeper will likely pay for itself in the long run.

Wrapping Up

Your business deserves the best support and resources it can get. The fact is that you’ll get higher-quality dedicated bookkeeping when you outsource. Free up your and your team’s time to focus on growing your business: your bookkeeper is specially trained to handle any financial curveballs! By investing in professional bookkeeping services, you provide your small business with the expertise, foresight, and integrity it needs to be resilient during difficult economic times. Plus, accurate records can help you in case of a loan application or audit.

Lloyd & Hodge unchains you from your calculator and frees up your valuable time. With Lloyd and Hodge, access reliable and up-to-date data whenever and wherever with our digital cloud platform, paper-free system & secure login for worry-free organization, and stay on top of everything with regularly scheduled Analysis of Business Performance reports. Contact us today!

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