When you have a small business, chances are you and your employees won’t have the time to handle the bookkeeping needs that will keep your finances running smoothly. In these cases, you typically have two options: hire someone as a part-time employee, or outsource your needs to a company that can handle the entire process.
Having a part-time bookkeeper may be a necessity and the best option for businesses that have a certain amount of volume. However, deciding to add someone to staff can have a lot of additional costs, including possibly having to provide benefits if they work over a certain number of hours a week. Plus, you’ll have to provide desk space and computer access if you expect someone to come into the office to do this work.
Furthermore, when you have an employee, you are the only one who can be held accountable for their work. If you aren’t knowledgeable about financial aspects of businesses and can’t oversee work consistently, you might only find out that your employee was a dud when it is too late. Larger companies that handle outsourcing, on the other hand, are the ones who are responsible for ensuring that the work you receive is accurate.
The thing with most of these companies is that they ensure a high-quality product by making sure what is delivered to you is checked by accredited professionals. Most companies have a multi-layer system of checks to make sure that information is right, and others will have higher-level financial professionals sign off on everything that is produced.
Another thing to consider is that by virtue of their nature, these companies make sure your information is easily accessible online. They will have systems set up to store and organize information, cutting down on the headaches of filing cabinets and confusing systems. This is also great for the end of the year tax reporting, as it makes sure everything is clearly prepared for your accountant, cutting down on these costs. While you can also have a part-time bookkeeper spend time scanning in documents and changing formats, again, you’ll often end up spending more money with less of a guarantee that correct processes are being followed.
A great thing that outsourced bookkeeping can offer you is flexibility. You won’t have to worry about letting employees go when the work reduces, and you’ll be well positioned to grow when things go well. This will take care of headaches and hiring costs, and you can focus on what’s important.