Bookkeeping is a necessity for good business. According to Forbes, running out of money due to poor bookkeeping is the #2 reason why businesses fail. Poor planning for costs, bad management of expenses, and other money problems all contribute to this. If you want to be successful, you need to know how to balance the books.
According to Dragon Financial, a bookkeeping company in Portland, Oregon, hiring a third party company to handle your bookkeeping can be advantageous to small and local businesses. Here’s how.
1. Save Costs on Hiring and Training
By law, any company that hires employees has to give a certain amount of training. This makes hiring new people expensive. If you’re a giant corporation that makes millions, or even billions a year, that’s not a problem. For small and local businesses, where every dollar counts, that’s a noticeable chunk of cash. Not only do you have to spend money advertising positions and interviewing candidates, you also have to spend time and money training them before they ever get to work for you.
Hiring a third party bookkeeping company avoids this cost. The company has already hired and trained people for you. They can get right to work, saving you time and money.
2. No New Taxes
When you hire new employees, they add extra time in taxes. Each new employee you hire is a new W2 form you have to fill out, which all have to be tracked for tax purposes. With a third party bookkeeper, you’re not employing anyone new, but hiring a subcontractor. It counts as a business expense, which you might be able to declare on your taxes. You don’t have to fill out any new W2 forms, or keep track of more employees. It makes for a lot less worry when tax season rolls around.
3. Save Time Doing It Yourself
If your a small, local business, you might actually be trying to do your bookkeeping yourself. While this works fine for some people, it does add a lot to your personal workload. Bookkeeping can take up to 20 hours a month. While that’s still less than a day, that’s time that either cuts into your the work that actually makes your company money, or time taken out of your free time.
Hiring a third party bookkeeper solves that problem. They will do all the work of keeping your financial records straight while you focus on making more money. You can stop worrying about where the time to manage your money will come from and enjoy more free time. After all, what good is making money if you can’t enjoy it?
Third Party Bookkeeping Is A Boon For Small Businesses
The biggest road blocks to keeping a business afloat, especially when it’s new or small, are always going to be money management. You have to keep your books balanced, but you also have to consider the cost of hiring employees, and the cost in time to doing it yourself. Hiring a third party bookkeeper solves most of the problems quickly avoiding the need to spend time and money hiring or doing it yourself. When every dollar and every hour counts, this can make all the difference between success or failure.