At some point, to continue to scale your organization, you'll need to start passing off some of your backend tasks. Generally, bookkeeping is one of the first tasks business owners tend to outsource.
Bookkeeping is an essential part of every business, and rightfully so. If your books are inaccurately maintained, this can lead to severe financial reporting troubles. To keep your financials in line, you need to have solid bookkeeping.
In this article, we discuss 4 benefits of outsourcing your bookkeeping.
A bookkeeper is responsible for keeping a record of all financial statements and transactions made by a business. They will provide accurate and up-to-date financial information about a company. Bookkeepers can have various tasks, including completing data entry, collecting transactions, tracking debits, and maintaining and monitoring financial records.
Essentially, they perform the primary functions needed for an accountant to do their job at the end of each period.
Working with an outsourced resource, such as a fractional bookkeeper, means choosing to partner with a skilled professional that is not part of your current organization. Your fractional bookkeeping partner will be responsible for all bookkeeping activities for your company. You will give them access to financial information like bank statements, payroll, tax documents, and your accounting software.
Do you realistically have time to spend on bookkeeping weekly or monthly? Bookkeeping is a time-consuming task and likely one that you may not be an expert in. Outsourcing this task will allow you to focus on other revenue-generating activities that move your business forward.
When you outsource any position in your company to an expert, you immediately take the burden off your shoulders and pass it off to someone with the necessary skills to complete the task in less time.
Unlike a full-time employee, where you are responsible for insurance, benefits, and training, by working with an outsourced bookkeeper, you can retain the services of an experienced bookkeeper on cost-effective terms. When working with a fractional partner, you only pay for the time that is dedicated to your business.
Depending on the size of your business and your bookkeeping needs, you can work with your fractional partner to determine a set price that meets your company's needs.
As we've discussed, by working with a fractional bookkeeper, you are choosing to partner with an experienced professional with specific bookkeeping skills to keep your accounts in order.
While most bookkeeping is done on cloud-based software, meaning errors are less likely, there is still a considerable learning curve to even the most basic software, especially for someone not used to working with these tools.
Your fractional partner will ensure that all records are accurate, accounts are balanced, and any items that need attention are promptly dealt with.
Tax season can be stressful enough without adding on the additional pressure of having to clean up your books from the 12 months prior. Working with an outsourced bookkeeper will ensure that when tax time comes, your books are prepared and up-to-date, making tax preparation much simpler.
Your bookkeeper can also help with tax preparation and can help you navigate your tax returns.
At The Finance Group, our seasoned financial professionals have years of experience working alongside businesses to help them achieve their goals while streamlining their financial processes. We work with clients across various industries, providing a range of financial services, from bookkeeping to CFO advisory.
