5 Signs it's Time for your Small Business to Outsource Accounting

Did you know that multitasking may be costing your business productivity? According toa study cited by the American Psychological Association, the mental blocks that result from repeatedly shiftingbetween tasks can cost upwards of 40% of a person’s productive time. Professional bookkeeping provides more in-depth financial reports than typical in-office bookkeeping.

If you outsourced bookkeeping at a rate of $2,500 per month, you’d spend $30,000 per year, saving your company about $8,000. They can help automate your accounting system to boost your financial reporting. With a third-party provider, you can reduce mistakes due to human error and decrease the risk when do you know to outsource your bookkeeping of fraud due to improved transparency and workflows. Processing payroll can be tough and making it an accurate process can even be tougher. If your business is still manually computing payroll, the discrepancies can be huge. If such problems are not addressed, this could lead to employee turnover.

How much do outsourced bookkeepers charge?

A bookkeeper helps rectify this situation by recording your business’ daily transactions so you’re better able to understand your financial situation at any given moment. And when your books are up-to-date, you’ll be better prepared for any opportunity or issue that comes your way. Additionally, be sure to ask what exactly is included in their bookkeeping services, so you know what you're getting in exchange for this fee. This also ensures there are no surprises down the road and that you're getting what you expect from the bookkeeper. When you hire an outsourced bookkeeper, many time-consuming tasks fall off your plate.

You may have some major blind spots and not know the right questions to ask or the right things to look for. If not, outsourcing is probably a good fit for your business. It's important that you can focus on growing your business and developing your core offering instead of trying to do things that aren’t your area of expertise. There is definitely a better use of your time than looking up new rules or regulations.

Free up time

Try to find one that offers you secure, immediate access to your financial reporting in an accounting software you feel comfortable in. There are many signs that you need to hire a bookkeeper, and only you will know for sure when it’s time to outsource your bookkeeping. As your business grows, experts recommend outsourcing tasks you’re not excited about or lack experience in so you can focus on the ones that require your expertise. Instead, hiring outsourced services means you can enjoy more of a “set and forget” process. By choosing to use a bookkeeping expert, you can rest assured that they have the skills needed. Rather than hoping your employee doesn’t miss anything, you can have a professional on your side.

Small businesses that have this function overseen in-house find it one of the most cumbersome aspects of running a business. With the amount of time you regain because of outsourcing this particular task, you can focus on your primary business operations. We've curated a list of best free software that every business owner must use. When working with an outside company, you should have multiple people who know your account. Having someone always available to answer questions or handle a task is a big deal. When you outsource, the company has a much bigger stake in your success. They know they need to do a great job and help you grow or you will most likely be moving on.