When you’re starting and growing a small business, saving money is everything. You furnish your office from Ikea, reuse printer paper, drink cheap coffee, and do as much as you can for yourself to keep expenses low and profit margins high.
But when it comes to bookkeeping and accounting, DIY might not be your most economical option. Here’s why outsourcing your bookkeeping can actually save you money.
An extra set of eyes on your finances
Your bookkeeper takes an in-depth look at your finances on a monthly, or even weekly, basis. They see where money is coming from, where it’s going, when it’s moving, where it’s getting held up—and they see it over a period of time. A trained, qualified bookkeeper from a reputable service can give you a constantly updated picture of your current financial situation, but they can also identify trends and point out opportunities for you to become more profitable.
That comprehensive view of your finances also allows your bookkeeper to check your math, when necessary. If you’ve been doing your bookkeeping yourself, a professional can go through your books and accounts to check for any potentially pricey errors you’ve made (which is another good reason to leave it to the pros).
Bills paid on time
Paying your bills on time isn’t just about avoiding late fees—it’s also about maintaining positive relationships with your vendors, lenders, and creditors. Companies are more likely to do business with operations that are responsible with money and satisfy their debts in a timely manner. (Some even offer discounts and bonuses for early payment.) If you aren’t completely confident in your ability to make payments on time, every time, while still running and growing your business, outsourcing that task to a professional is really your only safe option.
Write-offs written off
Tax season usually sees small business owners scrambling to find business expenses to write off and receipts to back them up. A good bookkeeper tracks expenses on an ongoing basis, recognizes potential write-offs that you might not have otherwise noticed, and maintains any receipts or documentation you might need to justify your write-offs. This saves you tax money on April 15, and it spares you the expense associated with defending yourself from an audit.
You can further simplify tax season by hiring a bookkeeping service that also offers accounting and tax preparation, so that all of your financial data and documentation is handled in one place by one company.
No overhead
An outsourced bookkeeper doesn’t require benefits, consumables, expenses, paid time off, or office space—they just need you to pay their fee on time. Hiring a service takes care of all of your necessary bookkeeping tasks without any of the overhead costs associated with an on-staff bookkeeper.
Time is money
And as a small business owner, your time and money are both limited. If you find yourself spending as much time updating books, sorting invoices and receipts, and paying bills as you do working with customers and drumming up business, hiring a bookkeeping service could be the best bet for your bottom line.
