How Outsourcing Your Bookkeeping Saves Your Money?

Are you looking to save time and money?

Bookkeeping can be very challenging for businesses and start-ups.

Managers and owners basically have three options for their accounting:

• Hire an employee
• Do it yourself
• Or allow a third party to handle things for you

These all options have disadvantages.

Obviously doing it yourself will take up a lot of your valuable time. It can be expensive to hire a full-time bookkeeper and might be more than what many small businesses really need.

Outsourcing requires you give access to all of your accounts to a third party – which requires a certain level of trust. 

However, outsourcing has increasingly become a more appealing solution due to technology solutions. And if you can find a team you trust, the advantages are numerous.

The following are some of the top reasons you should outsource your business or start-ups company.

Lessens the tax burden

Outsourcing companies have the best experts for your service. For your Finance and accounting outsourcing services, your company will get the best accounting professionals or accountants. Accountants have complete knowledge and know all the tax codes thoroughly. They study all the laws properly and keep them completely informed about the recent tax laws. This will save your money as they will be telling you where the laws are applicable and where there is no need to pay any tax. This saved money can be reinvested in your business. Also, the best part is that you will not have to rush all around when the tax season is there. This is because everything will already be handled and recorded. 

Outsourcing Increases Productivity

The majority of successful start-ups and small businesses are comprised of a versatile team that can take on various roles. In these settings, it is very common for employees to take on tasks that are unfamiliar to them – ones that are not part of their job description – to help the business.

However, for managers and owners, when employees’ responsibilities are expanded, it always is a balancing act. When more tasks are added to an employee’s workload it can distract them from being able to do the important work that you hired them for in the first place. It can also cause people to feel overworked, which can reduce their engagement and lead to fatigue.

This is exactly what happened to one of the center who was providing physiotherapy. Their team commented on this, saying that “even spending an extra 30-minutes every once in a while, to help out with the bookkeeping was exhausting. Nobody in the team wanted to do it and when someone did, it took forever. After outsourcing this task, it took a lot of stress of our team and there are no more arguments about who forgot to record something.

So, stop wasting the talent of your team! Instead, make use of automated outsourced bookkeeping technology to add up your receivable so that your employees can focus on improving and growing your business.

Customer could pay you Faster

You’ve got a lot on your plate so keeping track of who owes you what can get lost in the daily grind. A bookkeeper can keep track of it for you and with QuickBooks Online or with Xero you can send invoices straight away and set up automatic email reminders once invoices become overdue. This is the key to getting your invoices paid as quickly as possible. And it’s another thing you can take off of your to-do list if you hire a bookkeeper.

Reduces the risk of fraud 

Frauds can break the reputation of the company and can negatively impact the business of your company. Employee frauds are very common these days. Outsourcing can help you in easily detecting the frauds in your business (if there are any). This is why you must ensure that all your business operations are done in a completely secure way and by trustworthy persons or organizations. You must go for an experienced and reputed outsourcing accounting, finance or Data Entry Company If you want to get the best quality outsourcing services. 

Keep the ATO happy

If the thought of figuring out exactly what will keep the taxman off your back gives you a big ol’ headache, a bookkeeper can come to your rescue. Bookkeepers know exactly what your business needs to do to stay compliant so, you can be confident knowing there is no scary ATO debt coming your way.

Outsourcing Frees Up Your Time

The most valuable resource that anyone working at a small business or start-up is their time.

There are just 24 hours in a day, and you need to dedicate some of them to sleep (if you want to remain functional). Creating more time for your team and yourself will instantly give you a competitive advantage.

Outsourcing tedious tasks can free up time in your busy day. However, this will normally come at a cost. Skilled professionals have a tendency to charge high rates for the services that they provide. However, you also don’t want to really trust an inexpensive bookkeeper. This is where automation comes into play.

A majority of small business owners have to spend several hours every week working on tedious and basic accounting tasks, such as processing payroll, organizing sales receipts, and reviewing expenses on Xero/ MYOB/ QuickBooks/Excel or with any cloud base accounting software.

The less time you need to spend on accounting, the more time you’ll have to focus on growing your business rather than on mundane yet necessary tasks like bookkeeping, BAS lodgments, Single Touch Payroll & debt follow up.

So These are some few ways outsourcing helps you to save money. The benefits are endless and the proof is in the number of companies that are currently outsourcing. When you see how much money you made each week, it can be very motivating.

Looking for help with your bookkeeping needs? Get in touch with the team at Hornbill and start feeling confident in your financial decisions today! Spend time on what you are good at & leave the rest to the experts.