You’ve launched a business, made a few purchases, recorded sales, and now it’s time to record everything. If the idea of keeping track of all your transactions makes you cringe, we wouldn’t blame you. However, if you outsource bookkeeping duties, you’ll never have to worry about it.
Who would you hire to complete it for you is the million-dollar issue right now.
Hiring nearby bookkeepers or hiring “virtual” bookkeepers are your two primary possibilities. The third alternative is to hire an internal bookkeeper to do it for you, but this is far more expensive than doing it yourself.
Let’s examine the advantages and disadvantages of outsourcing bookkeeping so you can stop using spreadsheets and hire a professional to handle it instead.
Why Should I Outsource My Bookkeeping?
Nobody launches a company with the intention of handling their own bookkeeping. Outsourced bookkeeping gives you back that precious time so you can devote it to managing your business, looking for fresh growth prospects, or just unwinding from the pressures of operating a business.
You also have access to the crucial financial reports and statements that every business owner should be familiar with, including cash flow statements, income statements, and balance sheets, when you outsource your bookkeeping.
Types of Bookkeeping Services That Are Outsourced
Employing a local bookkeeper or using a virtual bookkeeper are the two primary types of outsourced bookkeeping services, whether you’re working with a friend down the street or having someone else handle it online in another location.
We’ve outlined the benefits and drawbacks of each to assist you in making the decision that’s best for you.
- Contracting a local bookkeeper
A local bookkeeper is a person or team located close to your place of business. Choosing this is wise if:
- Meeting your bookkeeper in person is something you appreciate.
- You don’t use internet banking or payment platforms like Stripe in order to conduct your firm instead, you rely on physical documents.
How to handle local accounting
In general, there are two ways to hire a local expert to do your bookkeeping: a freelancer or a firm.
To complete your books, a freelance bookkeeper works with you one-on-one. Online, on-site at your company, or both are possible working environments for independent bookkeepers. Solo practitioners range in knowledge and experience.
- Virtual bookkeeping
Although the word virtual bookkeeping may sound a little archaic, like a Windows 95 program, it actually refers to a common, paperless technique of managing your books.
Virtual accounting refers to internet bookkeeping performed by someone else on your behalf. Combining the greatest features of both traditional bookkeepers and accounting software is virtual bookkeeping.
A virtual accounting service will provide you with tools to track your money as well as bookkeepers to handle your books. Choosing it is a wise move if you:
- Have experience with online banking and feel at ease using the internet Prefer a fixed monthly rate to hourly billing
- Want to use a mobile app to access your finances online?
- prefer talking on the phone or online than in-person
You’ll save time and have peace of mind if you hire pros to manage your books. Working with an online service also gives you the advantage of being able to access your financial information at any time, anywhere, and save it safely in the cloud.
5 Reasons Why Bookkeeping is Important for Businesses
1. Supports Accurate Budgeting
Because it makes budgeting so much simpler, bookkeeping is essential for any organization. It’s simple to assess your financial resources and costs when your income and expenses are structured properly.
You can create a financial road map for your business using a budget. Once you’ve established a budget for your business, you can plan for future expenses that will help it develop. It’s tougher to create an accurate budget if your books aren’t correct and up to date because everything is largely based on guesswork.
2. Keeps You Tax Prepared
At the conclusion of the tax year, businesses must file their taxes, which is irritating.If you have a bookkeeping method in place, you’ll be prepared with financial data for tax season and the taxman won’t be after you.
Therefore, if you keep accurate balance sheets throughout time, you’ll be able to predict the outcome more precisely when HMRC requests a financial statement from your business for tax purposes.
3. Upholds organized records
Missed deadlines and a few minor mistakes may occur as a result of the stress of searching for a critical piece of work at the last minute. Regular bookkeeping can help reduce errors, which are unaffordable for any size organization.
You can keep orderly records if you regularly complete your books, remain on top of things, and don’t wait until the last minute.Finding the information you urgently need will become considerably easier over time.
4. Business Targets Are Simpler to See
Every company wants to grow, but doing so at the ideal rate could be complicated by subpar financial records. Setting one’s own growth objectives is challenging in the absence of valid data or statistics.
Once more, it will be because you’re guessing about everything, and you’ll be disappointed that you weren’t able to achieve your earlier objectives. Staying on top of your finances and keeping regular financial records will help you sketch out your business goals more clearly and see progress.
5. Complying with governmental regulations
Everyone is aware that the government frequently announces new programs aimed largely at improving their quality of life. The most recent initiative that the government is requiring firms to abide by is the Making Tax Digital (MTD) scheme.
It specifies explicitly what it means when it says that firms must start using software and programs to file their taxes online. You’ll need to complete your books in this case in addition to using an app.
How NetworkBD can help
Get the assistance you require from NetworkBD, the largest provider of bookkeeping services in America. To automatically import transactions and update your financial reporting, we establish connections with your bank accounts, credit cards, and merchant service providers.
You can message your personal bookkeeping team or set up a phone call using the NetworkBD platform if you need to talk about your money. You even have access to our in-house tax experts, who can give you advice on reducing your tax liability. Study more.
