We all know it’s gotta be done. You have to balance the books. If you don’t, you’re gonna have a bad time when tax season rolls around. Nobody wants to do it, though; it’s so time consuming and everything has to be just right. If you’re running a small business, you might think it’s better to do it yourself and save money, but outsourcing your bookkeeping might be a better option. Here’s why:
1. Experts Can Do It Faster
Yeah, you can do your own bookkeeping. As long as you’ve got a basic grasp of math, a calculator, some spreadsheets, and enough time, you’re good to go. Just because you can do it on your own, that doesn’t mean it’s a good use of your time. Everybody’s got things they’re good at. If you’re running a business, you’re probably good at sales, or production, or some similar thing. Maybe you’re good at bookkeeping, but maybe it’s just something you have to do. If you’re in the second category, outsourcing to a bookkeeper gives you back all that time you spend on your finances. Let them get it done, quickly and efficiently, while you focus on the parts of running your business that are your strong suit.
2. Don’t Need QuickBooks (Or Other Expensive Software)
QuickBooks is a very good software suite for helping manage finances. But do you really need it? According to Dragon Financial, a bookkeeping company in Portland, Oregon, you might not. It can be expensive and depending on your business, it might overload you with tools you don’t need. If you outsource to another bookkeeper, they can get business discounts on QuickBooks. They’ll also know how to use it properly. That way, you get the benefit of QuickBooks without having to pay for it yourself.
3. Regular Reminders
The hard part about managing finances is that, with everything else you’re doing for your business, it can be hard to remember everything. Outsourcing to a third-party bookkeeper can solve that problem. They’ll be specifically dedicated to managing your finances, so they’ll keep an eye on everything. When the time comes that you need to do something, they can send you reminders. These can be monthly, or quarterly, depending on the needs. Either way, you can be sure you won’t forget something because you get too busy.
4. Keep Up With The Law
The laws concerning taxes are always changing. It seems that just about the only thing Congress can be bothered to do is fiddle with the tax codes every year. It can be really hard to keep it all straight. When you’re running a small business, you don’t have time to keep up with everything on top of managing your company. For a bookkeeper, though, that’s the whole of the job. They make it their responsibility to keep on top of everything and help you from falling behind.
5. Classifying Deductions
Deductions are the key to getting ahead in a business. I mean, there’s a lot of keys, but this is a big one. Knowing what business expenses can be deducted can be the difference between ending the year in the red, or in the green. You have to classify all your deductions correctly, though. Get it wrong and not only do you lose the deduction, but you get hit with a fine and have to redo it all. A bookkeeper can help you keep everything straight.
Outsourcing Your Bookkeeping
One of the biggest mistakes business owners make is trying to do everything themselves. Delegation is an important part of leadership, because different people have different skills. To be an effective business owner, you’ve got to know what you do well and what you don’t. If there’s something you don’t do well, find someone who can. When it comes to bookkeeping, you can’t afford to make mistakes. If bookkeeping isn’t your best skill, outsourcing it to a bookkeeper can keep you from getting into trouble. Let someone who knows their stuff take care of it for you so you can focus on what you’re good at: making money.