Outsourcing Your Bookkeeping - The Why & How!Apr 26, 2023
As a business owner, you may be juggling multiple roles, from marketing to sales, and everything in between. One task that can often fall by the wayside is bookkeeping. It's not always the most exciting or glamorous part of running a business, but it's essential to keep track of your finances and ensure that your business is profitable. Outsourcing your bookkeeping to a professional bookkeeper can help you streamline your operations and focus on what you do best – growing your business.
Benefits of outsourcing bookkeeping:
1. Save time and money:
Outsourcing your bookkeeping can save you both time and money. As a business owner, your time is valuable, and you may find that you're spending too much time on bookkeeping tasks. By outsourcing, you can free up time to focus on other areas of your business, such as sales and marketing. Additionally, hiring a bookkeeper can save you money in the long run. A professional bookkeeper can help you avoid costly mistakes and ensure that your books are accurate, which can save you money on taxes and prevent financial penalties.
2. Access to expertise:
A professional bookkeeper has the expertise and knowledge to handle your bookkeeping tasks efficiently and accurately. They can help you stay up-to-date with the latest laws and regulations and provide valuable insights into your business's financial health. By outsourcing to a bookkeeper, you can tap into their expertise and gain valuable insights into your business.
As your business grows, so do your bookkeeping needs. Outsourcing your bookkeeping allows you to scale your operations without having to hire additional staff. A bookkeeper can handle your increasing volume of transactions, ensuring that your books are always up-to-date and accurate.
Getting started with outsourcing bookkeeping
1. Determine your bookkeeping needs:
The first step in outsourcing your bookkeeping is to determine your needs. Consider what tasks you want to outsource, such as accounts payable, accounts receivable, bank reconciliations, payroll and BAS. Once you've determined your needs, you can start looking for a bookkeeper who can meet those needs.
2. Find a reputable bookkeeper:
Finding a reputable bookkeeper is essential to ensuring that your bookkeeping is done accurately and efficiently. Look for a bookkeeper with experience in your industry and check their references to ensure that they have a track record of delivering quality work. Additionally, make sure that the bookkeeper is licensed and insured.
3. Set clear expectations:
Once you've found a bookkeeper, it's important to set clear expectations. Determine the scope of the work, the timeline, and the budget. Make sure that both parties agree on the terms of the agreement before work begins.
4. Provide necessary information:
To ensure that your bookkeeper can do their job effectively, you'll need to provide them with the necessary information. This includes bank statements, receipts, and other financial documents. Make sure that you provide the information in a timely manner to avoid any delays in the bookkeeping process.
What is required from the business owner and the bookkeeper?
For outsourcing bookkeeping to be successful, both the business owner and the bookkeeper need to be committed and work together closely.
From the business owner:
1. Timely provision of financial information:
The business owner needs to provide the bookkeeper with the necessary financial information in a timely manner. Failure to provide the information promptly can lead to delays in the bookkeeping process and inaccurate financial reports.
2. Clear communication:
Clear communication is essential to ensure that the bookkeeper understands the business owner's needs and expectations. The business owner should communicate any changes in their business operations or financial needs to the bookkeeper promptly. Also provide feedback about things that are not working so well or alternatively things that working very well!
From the bookkeeper:
1. Expertise and experience:
The bookkeeper should have the expertise and experience to handle the business owner's bookkeeping needs efficiently and accurately. They should be familiar with the latest accounting laws and regulations and keep up-to-date with changes in the industry.
2. Timely and accurate bookkeeping:
The bookkeeper should provide timely and accurate bookkeeping services to the business owner. They should ensure that the business owner's books are up-to-date, and financial reports are accurate and delivered on time.
3. Good communication skills:
Good communication skills are essential for a bookkeeper. They should be able to communicate financial information to the business owner in a clear and concise manner, and be responsive to the business owner's needs and concerns.
In summary, outsourcing bookkeeping can be a great way for small business owners to streamline their operations, save time and money, and gain access to expert bookkeeping services. To get started, business owners should determine their bookkeeping needs, find a reputable bookkeeper, set clear expectations, and provide necessary information. Both the business owner and the bookkeeper need to be committed and work together closely for outsourcing bookkeeping to be successful. By outsourcing their bookkeeping, small business owners can focus on growing their business and achieving their goals.