A business, small or big, involves a lot of administrative work. It means managing communications, marketing, financial matters like tracking expenditure, income, taxes, etc. Most small business owners handle all this on their own.
As a business grows, it takes more time and energy, and managing all the above tasks yourself poses a hurdle in looking at the bigger picture. Financial matters and business accounting do not receive the attention they need. Ignoring to keep accounting records up-to-date and, as per accounting norms, have grave implications for a business.
This is when hiring the services of a professional bookkeeper provides a solution to save time. It also gives you the flexibility to concentrate on business growth. Outsourcing accounting work to a professional is a cost but can save you money by identifying various items of expenditure that may be unnecessary. It has great value in streamlining financial records.
Ask yourself whether reconciling banking records and your financial records are very time-consuming for you. Can you grasp detailed financial reports? If not, hiring a bookkeeper is the way to go. Look at the reasons why hiring the services of a trained bookkeeper is a smart business decision.
1. Improve Time Efficiency
An expert bookkeeper will complete finance-related tasks efficiently and without mistakes in half the time than you. For a businessperson, time is a limited and valuable resource. A small business owner needs to focus attention on creating a sound base, innovating new products or services, and growing the business into a viable unit. Working out sales and marketing strategies, arranging finances, and customer services are key issues for a growing business. Leaving the bookkeeping to professionals is a cost reduction move you shouldn’t ignore – it saves you time and money to focus on revenue growth opportunities!
2. Stay Out Of Things You Don’t Really Understand
Most business owners lack a sound background in finance and accounting. Various accounting operations and practices related to taxes, depreciation, accounts payables and receivables, etc. are very complicated issues. It is crucial to hire a qualified and certified bookkeeper to handle these business tasks. It reduces mistakes that may prove costly and problematic to deal with later on and helps proper maintenance of tax payments, bill records, and payment of bills on time. All of this improves your creditworthiness and business image.
3. Get a New Perspective on Your Business
You may be confident that you understand every aspect of running your business during its developmental stage. However, it benefits you to have professionals that provide an objective view of finance and accounting aspects. A professional bookkeeper presents financial records and runs reports regularly to draw your attention to fund flows, profit/loss, strong and weak financial areas, etc. By using their number-crunching skills, they present to you a financial snapshot of your business.
4. Manage Your Profit Margins
Most start-ups work on a thin profit margin. A professional bookkeeper can keep you informed of the profit/loss performance and suggest measures to increase revenue and improve your bottom line.
5. Ensure That You Pay Taxes on Time
A well-run business follows sound financial practices that help avoid getting into the clutches of external auditors and taxmen. It means keeping all your financial records in good order and filing your quarterly and annual tax returns. The nature of your business decides the type of tax requirements, such as corporate taxes, estimated taxes, other tax filings, etc. It helps to run your business smoothly, if you have an efficient bookkeeper who manages all your tax matters, as also payroll and business-related financial issues.
6. Gives you the Flexibility You Need
There are some distinct benefits of outsourcing a bookkeeper, than having one on your staff. The main benefit is the option to hire their services for specific work temporarily, while you continue managing other finance-related work in-house. You can engage their services permanently if you find there is a lot of work that you are outsourcing. When you outsource these services, it helps to reduce additional costs of having a full-time employee on your staff, including leaves, worker’s compensation insurance, superannuation benefit.
The other benefit is that you have easy and convenient access to the services of a professional all the time. You do not need to worry about whether an employee is on leave or has left the job with no one at the desk. You live under the illusion of saving money when you handle everything yourself.
But the fact is that a professional bookkeeper saves you money in more ways than one. You avoid a variety of financial risks such as missed tax obligations and similar payments, lack of up-to-date knowledge, delay in accounts receivable, and the chance for human error.
Plus, your time is money that you could use towards getting your new business running and bringing in the revenue to move to the next level.
For effective and cost reduction strategies & efficiencies that will increase your bottom line, contact the experts at Benchmark Cost Solutions at this number – 02 9525 0777. If you prefer, write to us at this email address, and we will revert quickly.
Thanks for reading,
Benchmark Cost Solutions Team
02 9525 0777