Most business owners start their venture because they have a passion for what they do. However, unless that passion is tracking expenditures, receipts, and deciding on capital allocation—you're going to find there are more aspects to running a business outside of your product or service.
Bookkeeping is arguably the most important aspect of running a business; your bookkeeping tells you the financial health of your business, and gives your business valuable insight in terms of projections and where you can improve. According to Business Insider, 82% of small businesses fail due to cash flow problems. Understanding where your money comes from and goes, as well as how to correctly budget are vital to the health of your operation. Besides knowing how much profit you will make this year, there are several other benefits to hiring a professional outsourced bookkeeping company. In this blog post, we're going to break down 7 reasons why you should outsource your bookkeeping, and the benefits your business stands to gain from them.
1. More Time Spent On What You Do Best
Every business owner is highly capable of doing their own bookkeeping, but that comes with an opportunity cost. Each minute you spend on your bookkeeping, that's less time you have to devote toward new product development, and increasing the value provided to your clients. By using your time more wisely, you will increase the life time value of your clients, and grow through referrals as a result.
2. Better Focus Increases Efficiency
Outsourced bookkeeping services helps you enhance efficiency, and focus. Bookkeeping can be a distraction compared to actions that grow your revenue. Anything that doesn't add to your business growth isn't something you should be wasting your time on as an entrepreneur.
Unless your business is bookkeeping services, odds are you aren't a professional bookkeeper. This means you're going to spend 2-3x as many hours to bring your accounts current, as it would for a professional outsourced bookkeeping company. The outcome from a professional bookkeeper will provide more accurate, and efficient financial records. Under reporting or over reporting can lead to investigations, penalties, and problems with cash flow in the future. Incorrect records can lead to decisions being based on the wrong information, which can destroy a business.
4. Constant Improvement
When you get outsourced bookkeeping services, you know you can depend on trained professionals who are continuously improving their craft and "sharpening-the-sword." Trained professionals who understand the nuances of bookkeeping and are currently with technology can help you integrate new solutions and streamline your bookkeeping process. Outsourcing your bookkeeping to an expert will keep your bookkeeping accurate, and the best it can be.
5. High Level Bookkeeping Systems
When your small business hires a professional outsourced bookkeeping company, you will get access to the industry's latest and greatest systems, software, and processes on the market. Your bookkeeping will be more accurate, efficient, and be done using the best methodologies available. Say goodbye to spreadsheets and keeping your receipts in boxes! Expert outsourced bookkeeping services from True North will give you better visibility of your REAL numbers, so you can make the best informed decisions possible.
6. Don't Worry About Penciling In Hours of Your Schedule for Bookkeeping
Doing your bookkeeping in-house means you have to make up for time lost when you're sick or go on vacation. When you hire True North for your outsourced bookkeeping services you no longer have to worry about backtracking or making up for the hours you missed. You
7. Save Money
It's a common believe that doing your bookkeeping yourself will save you money, but realistically your time is worth more than handling your own bookkeeping. You should focus on bringing in new business and further developing your operation—opposed to tracking and coding your transactions.