If you’re considering outsourcing your bookkeeping, there are several benefits beyond simply saving your business time and money.
When handled in-house, bookkeeping is often managed by someone without an accounting background or if they do have an accounting background they may be more junior. This can limit what you can achieve through your bookkeeping. When bookkeeping is outsourced to experts on the other hand, it can be an excellent way to help grow revenue in your business through investing your resources more wisely and enabling you to tap into revenue-generating opportunities.
What does outsourcing bookkeeping involve?
Outsourcing your bookkeeping involves working with a third-party outsourced bookkeeping service to manage your books on your behalf. Instead of handling bookkeeping in-house, you gain a team of experts, usually on a retainer basis, to take on this task for you.
Outsourced bookkeeping services will usually handle some or all of the following tasks; balancing your books, recording financial transactions, reconciling your accounts, handling reporting including profit and loss statements, balance sheets and end of year reporting, managing accounts receivable and payable, handling collections, managing payroll, lodging BAS, preparing tax returns and creating budgets and forecasts.
How can outsourcing your bookkeeping help improve your top and bottom line?
Outsourcing bookkeeping brings down your costs
One of the quickest ways to add to your bottom line is to cut costs. The costs of employing a bookkeeper in-house are far greater than the costs of outsourced bookkeeping services, given you need to pay wages, benefits and entitlements such as sick leave and annual leave, not to mention the overheads associated with employing someone in the business. When outsourcing your bookkeeping, these costs are no longer your responsibility and you simply pay for what you need.
Outsourcing bookkeeping frees up time to spend on revenue-generating work
Often bookkeeping is handled by someone in the business who has other responsibilities outside of handling finances. In small businesses this can even be the business owner, who then finds themselves distracted from more important priorities.
Once the responsibility of handling the books is off your team’s shoulders, it frees up time to spend on other priorities including revenue-generating work such as marketing or sales. In businesses where revenue-generating work isn’t maximised due to time constraints, there will always be limits on revenue potential. Avoiding this trap can unlock significant revenue opportunities for your business.
More sophisticated bookkeeping leads to higher revenue
When you work with outsourced bookkeeping services, you gain a team of experts with extensive financial expertise and knowledge. They know the industry, understand changes to regulations and can ensure you remain compliant. You also gain several minds for less than the price of one.
More importantly, outsourced bookkeeping services can ensure your financial management is far more sophisticated which is directly linked to better financial results. Improved reporting and transparency, forecasting, budgeting and cash flow management will all contribute to better revenue outcomes, both through enabling the business to make better and more informed decisions, but also by creating efficiencies which will contribute to your bottom and top line. It’s rare to gain these kinds of insights when bookkeeping is handled in-house, which can make growing revenue an uphill battle.
If you’re interested in finding out more about how outsourced bookkeeping services can improve your revenue, contact us.
At Keeping Company, we’re not just accountants, we’re business people too. With our counsel, your business can reach its full potential.
We have a team of experts; Cloud Accountants, Business Advisors, Finance Specialists working together and ready to help, contact us today.
For all media enquires please contact Tracy Miller, CMO, Keeping Company 0414 898 452.
The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.