Bookkeeping is one of the more important functions within any business. A bookkeeper is required to keep track of every transaction done by the business. However, for various reasons, some company owners opt to outsource their bookkeeping instead of hiring in-house bookkeepers.
Here are some benefits your business stands to gain if you outsource your bookkeeping services to another company.
Let a Team Handle Your Bookkeeping
If you hire bookkeeping clerks, these are usually considered the in-house staff of your business. This means that they’ll be required to render bookkeeping services for your company on either a part-time or a full-time basis. Since they’re considered legitimate employees, they’re entitled to the benefits that legitimate employees usually get in your company. So, you’ll have to let them complete bookkeeping tasks for your company according to the terms of employment agreed upon when they were hired.
On the other hand, if you outsource bookkeeping services to a bookkeeping company, you’re not required to pay them the same rate that in-house bookkeepers enjoy. In fact, you can select an outsourcing company that’ll charge you less for the same work. There may also be more bookkeepers working in the team of the outsourcing company. So, you may get more done with less money, which can be an advantage in business.
Gain Time for Other Business Functions
Even though bookkeeping is an important function within any business, it doesn’t have to be the only function operating within your business. By outsourcing your bookkeeping to another company, such as Shmunky, you’ll be able to work on other aspects of your business that need your attention.
For instance, a medical clinic has multiple financial transactions happening every second, even round the clock at times. But, since the clinic has other activities to stay on top of, such as taking care of patients and monitoring lab work, it can be beneficial to simply outsource their bookkeeping function to an outsourcing company instead. That way, clinic staff can do what they do best, which is to treat symptoms of people’s illnesses.
You Only Pay for What Services You Need
A bookkeeper is required to do the following services:
- Record every financial transaction
- Keep track of costs (also called debits)
- Monitor income (also dubbed credits)
- Create reports, such as financial statements for clients
- Initiate bank deposits
- Generate payroll
- Monitor purchases, invoices, and accounts that are past due
If you had an in-house team for that, you would have to pay them full-time plus benefits because that’s a lot already for anyone’s plate. But, if you outsource these services, you only pay for what you immediately need.
If you don’t need these services at the moment, you don’t have to pay for them, allowing you to have substantial savings for your company.
Funnel Savings into Other Investments
Using the example of a medical clinic again, if you reap savings by outsourcing your bookkeeping to another company, you can use those savings for other business expenses instead.
For instance, you can buy new medical equipment for the clinic, hire more health care workers to man the clinic, or you can have the clinic upgraded so that more clients will be attracted to use your services.
Business Will Grow at Minimal Expense
Sometimes, it makes financial sense to outsource your bookkeeping services to another company, even if your business is poised for growth already. The reason for this is: if it isn’t broken, don’t fix it. You might be more comfortable allowing an outsourcing company to handle the bookkeeping indefinitely because it frees you to grow the business.
If your business relationship with the bookkeeping company is professional, effective, efficient, and timely, why do away with that? It’s more sensible to continue with this arrangement until such time that you feel you’ll need in-house bookkeepers.
Final Takeaway
Every business needs bookkeeping done. But, some businesses just can’t afford to hire in-house bookkeepers on a full-time basis at the outset. It could be that their business is a start-up and they need to monitor every expense closely just to stay afloat. It may be because it costs additional money to recruit and train an in-house bookkeeping team. Or, maybe it’s just very difficult for that business to retain bookkeeping staff since they’re always being “pirated” by business competitors.
If you encounter problems such as these regularly, the good news is that you can simply outsource your bookkeeping to an outsourcing company instead. Outsourcing bookkeeping means that you’ll be able to monitor every financial transaction without losing your focus on your core business. You’ll also be able to generate savings that can be used for growing the business in the long term.
