7 Benefits You Didn't Know About Outsourcing Bookkeeping
Do you know ?42% of small business owners admit they had limited or no financial literacy when they started??
So, without a clear understanding of profitability, expenses, and cash flow, you're running blind.
But outsourcing bookkeeping can fix that.?
By working with bookkeeping experts, you can be sure your finances are handled correctly and efficiently.?
Below are 7 benefits of outsourcing bookkeeping that can help your business with financial management.
Benefit 1. Fill Expertise Gaps
Are you taking on too much over your head as a small business owner? It’s a common situation.
Just because you can do something doesn’t mean it’s a good idea.?
We get that many business owners want to save money and handle everything themselves, especially since you’re likely very capable.
But the benefit of outsourcing bookkeeping means you can save you money and improve the experience for your team and customers.
As a small business owner, recognizing the areas where you and your team may struggle is a sign of strength.?
By letting experts manage your bookkeeping, you can spend your time on the tasks you excel at and work more effectively on your business efforts.
Outsourced bookkeeping will result in:?
You’ll witness improved results by letting people with years of experience handle your bookkeeping in consideration to doing it by yourself.?
Plus, you get more time to focus on your business that requires your attention and expertise most.
Benefit 2: Simplifies Process
The second benefit of outsourcing bookkeeping is you don’t have to:
Outsourced bookkeeping gives you a solution to deploy best practices and delegate tasks to another company.?
So, with an outsourced bookkeeping service, you don’t compromise on quality while another company focuses on tasks under their expertise, and you can now focus on your core business activities.
Benefit 3: Improves Efficiency
The biggest advantage of outsourcing bookkeeping is Time.?
Managing financial records in-house can divert attention from core business functions, especially for small businesses or startups.?
By outsourcing bookkeeping, you eliminate the need for internal staff to juggle administrative tasks, allowing them to focus on whether that’s sales, product development, or client management.
When you hand over the reins to an outsourced team, you’re also tapping into their expertise.?
These professionals are trained in bookkeeping and accounting best practices, meaning they’re more efficient and less prone to error.?
This leads to:
Benefit 4 : Access to Global Talent
Outsourcing bookkeeping allows you to hire skilled professionals from around the world.
A wide range of options open up for you.
You’re not limited to local bookkeepers, which means you can find experts with the right experience, no matter where they are.?
These global professionals bring fresh ideas, specialized knowledge, and different perspectives to help manage your finances better.?
Plus, you can find top talent that may not be available in your area, making your bookkeeping more efficient and accurate.
Related: Bookkeeping Assistant for Startups
Benefit 5 : Access Cloud-Based Bookkeeping System
Outsourced bookkeeping services use advanced financial software to track, organize, and report your financial data.?
The best part??
You don’t need to invest in these tools yourself.
These cloud-based solutions offer:
By leveraging these technologies, outsourced bookkeeping not only saves you money but also improves the speed and accuracy of your financial processes.
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Benefit 6 : Scalability
Scaling a business may appear challenging, but it doesn’t have to be, especially when you have the right technical expertise on your side.
For new businesses and startups, leveraging the concept of growth hacking can be particularly beneficial.
This approach focuses on innovative strategies to achieve rapid, exponential growth.
This often requires hiring additional staff or investing in expensive software—both of which eat into profits.
By outsourcing your bookkeeping needs your financial efforts are handled smoothly, no matter how fast your business grows.?
Outsourcing is an effective growth hacking with no additional overhead costs, unlike hiring in-house employees.?
Whether you grow 20% or 200%, your financial processes can keep pace without breaking the bank.
Benefit 7: Financial Savings
One of the misconceptions about outsourcing is that it’s expensive.?
But in reality, outsourcing bookkeeping can save you money—a lot of it. 59% of companies outsource to cut costs.
Here’s how:
These savings add up quickly, making outsourced bookkeeping a smart financial move for businesses of all sizes.
For small businesses, hiring a full-time, experienced bookkeeper can be a costly investment.
The overhead for a permanent employee includes not just salary, but also benefits, insurance, office space, and technology.
Think of it this way: The average salary of a bookkeeper in the United States is about $45,705 per year .
If you outsourced bookkeeping service at $3,000 per month, you’d spend $36,000 per year, saving your company about $9,705.
How to Choose an Outsourced Bookkeeping Company
When choosing a company to outsource your bookkeeping, here are some things to consider :
Experience: Choose a company that has shown they can get good results, especially in your type of business. Ask them to show case study or examples of past work.
Services: Make sure the company offers the services you need.
Technology: Check if they use the latest tools and software.
Reputation: Read what other people have said about them and ask for references to see if they are reliable.
Cost: Compare prices to find a company that fits your budget without sacrificing quality.
Watch out for these warning signs:
Frequently Asked Questions About Outsourcing Bookkeeping
1. Will outsourced bookkeeping compromise the security of my financial data?
No outsourced bookkeeping does not compromise the security of your financial data.
Reputable firms use encrypted, cloud-based systems to protect your sensitive financial data.
2. How often will I receive financial reports from my outsourcing provider?
Most firms offer customized reporting schedules to meet your needs, whether you require weekly, monthly, or quarterly reports.
3. Can outsourcing scale with my business as it grows?
Yes. Outsourced bookkeeping is highly scalable, adapting to the financial needs of both small businesses and large enterprises.
Taking Everything Into Account
Bookkeeping is Important for Small Business Growth
Whether you keep track of your business finances yourself or hire someone to do it, it’s really important to know where your money is going and how much you’re making.
Even if you’re not good at bookkeeping, understanding your finances gives you a lot of control.
You’ll be able to make smarter choices for your business.
While getting expert help is great, it’s still important that you have a good idea of how your money is being managed, no matter who’s in charge of it.
If you want to save time and build wealth.
Outsourced bookkeeping is the best and safest option.?
At Wishup we’ve helped 1500+ small business owners like YOU to streamline their financial management.
Take your step towards hiring a virtual bookkeeper . Schedule a free consultation today or email us at [email protected] ?