5 Reasons Outsourcing Bookkeeping Is The Magic Bullet That’ll Accelerate Your Business Growth

What Don Vito Corleone in The Godfather really wanted to know was whether to outsource or not!

No, he didn’t. But the question still stands… should you outsource your bookkeeping?

Outsourcing is nothing revolutionary. Yet, many businesses, especially those in the start-up phase, can’t stomach the idea of putting their money and faith in an outside agency. That too when bookkeeping is such a crucial branch of the business model.??

Look, I get it – but I also get that by dismissing outsourcing entirely, you’re missing the forest for the trees.

Outsourcing bookkeeping & what the heck it means for your business

When you outsource bookkeeping, it means you pay to track and record every financial transaction – that way, you don’t have to stress about stacking up a pile of bills, invoices, and payrolls and analyzing cash flow. Sweet!

Plus, the best accounting and bookkeeping firms are multi-faceted. They do not merely handle your bookkeeping, but also employ one-on-one experts on the following and more:

? Monthly Accounting

Tax Advisory

Retro Bookkeeping

Not only does outsourced bookkeeping make it easier to hone and streamline your business, but they also deliver in other ways. Going by the pricing trends of the top 10 bookkeeping companies in North America, the average cost for outsourcing can range from $500 to $3000 based on your requirements.???

The more standard bookkeeping support you need, the lesser the cost. Typically, the more you pay, the more tailored and added features you can enjoy. Not liking how this goes?

??Pro-tip: Keep reading to learn why the cost might be cheaper than it seems – especially if your product is worth more than what you spend on outsourcing or the cost of in-house bookkeeping!

Five reasons why your business is ready to outsource bookkeeping?

Outsourcing bookkeeping can empower you to hone your core competency and grow your business exponentially faster than you could with an internal team. When you free minds and hours from dull tasks like collating and monitoring bills, payrolls, and inventory, you make room for more positive experience for your customers.?

Here are the seven ways it can add to your business growth if you’re still skeptical.

1. ? ? To rein in capital costs

Internal accounting and bookkeeping teams don’t come cheap. The average base salary for an entry-level bookkeeper is nearly $47,000, according to PayScale .?

Now consider the costs of hiring, onboarding, training, additional benefits, system and tools supplies, day-to-day operations, and employee turnover and retention – phew! Not to mention, bookkeeping companies invest in the best software, which is a win-win. You get it for a fraction of its cost (including implementation, training, and migration) and they bear the one-time cost to serve multiple clients.?

The idea is to collaborate with an agency 100% committed to refining a process best suited for you. Just like that – problem removed, money saved.

2. ? ? To free up enterprising headspace

Cost-cutting is only the beginning.?

Let’s be real. Would you rather spend headspace (and office space) on checking all your bills, invoices, transactions, and purchase history when you can work on your products and engage with prospects and clients? That’s a no-brainer!

In the initial stages, it is better to keep the ancillary operational costs related to bookkeeping variable rather than fixed. Because experts are handling all these as per your business needs, you bet they can deliver exactly what you need and can scale up when you’re ready. There is also a lot of trust and peace of mind that comes with NDA, contracts and guaranteed confidentiality. You may even take some time off. Do you see what I mean?

3. ? ? To maintain financial wellness of your business

Imagine the hours you sink into tracking every financial transaction, not to mention the added stress during tax season. By outsourcing every bookkeeping task, you enjoy a sense of holistic view of your budgeting and forecasts, thanks to automated balance sheets from a trusted partner. It not only allows you to see where your money is going but also make decisions accordingly without spending hours poring over spreadsheets.?

Bookkeeping companies update cash flow in real time. So you can gain top-tier metrics of your transactional trends and identify areas that can be more cost-efficient. This way you have stronger expenditure data with the latest information, enabling you to employ the best practices to optimize the product cycle.

4. To never let an expenditure go unclaimed

The percentage of unclaimed expenses by small businesses in Canada is depressingly high, mostly because of a lack of awareness on what to claim and how much. It’s a two-edged-edged sword: If you don’t have the best bookkeeper from the first touchpoint to the fiscal period end, you will miss opportunities and money. Yet, an internal team will be even more expensive.

The answer is simple.

Since a clean balance sheet makes the world of your enterprise go round, you need a third arm to ensure every business expenditure is claimed to the maximum. That’s more money towards product cycle and customer engagement.?

5. ? ? To stand shoulder-to-shoulder with big players

Outsourcing bookkeeping services levels the playing field significantly. Most small companies simply can't afford to sustain an in-house team as large enterprises do. Boutique bookkeeper companies give rigorous training to enable their staff to deliver economies of efficiency and expertise that established players enjoy.?

Plus, the smaller your business is, the more susceptible to risks you are. A contract with an external accounting firm can have your back – whether it is assuming and mitigating risks pertaining to bookkeeping or avoiding burns when handling sensitive and confidential data. ?

Outsourcing bookkeeping: A magic bullet for your business

Let me be honest. Not every aspect of running a business is derived from passion or joy. Sure, you have to bookkeep. Sure, you must file the taxes on time. Are they enjoyable?

Not everyone’s flavor.

Instead, set yourself up for a great road to success and fill your schedule with exciting work – creating accessible products and services that help people to the point that they become your biggest brand ambassadors. Leave the bookkeeping to the experts.?