Why You Should Outsource Your Accounting And Bookkeeping Functions

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Why You Should Outsource Your Accounting And Bookkeeping Functions

There are many reasons why business owners may consider outsourcing bookkeeping and accounting business processes.

Since launching Enkel Backoffice Solutions, I’ve had the opportunity to talk with business owners of varying sizes in a wide variety of industries. Ultimately, the pain points I encounter with business owners are pretty universal. We all want to save money and time and make better financial decisions.

However, the benefits of outsourcing your accounting and bookkeeping tasks go beyond the cost and time savings. Outsourcing your accounting back office gives you peace of mind, knowing that your books are taken care of while you focus on your core business functions.

Here are ten reasons why you should outsource your accounting tasks.

1) You want to save money

There’s a common misconception that outsourcing non-core functions is more expensive than managing the processes internally. But for many small businesses, having an accounting department, full-time accountant, or bookkeeper on payroll isn't cost-effective.

2) Or you want to save time

As a small business owner, your core focus is what you do best. Whether you’re an expert at selling medical equipment or your true passion is crafting gluten-free baked goods, focusing your time and efforts on bookkeeping is taking time - and, as a consequence, money - away from what encouraged you to go into business in the first place. By outsourcing non-core functions, you’ll feel the weight lifted from your shoulders, both metaphorically and financially.

3) You want timely financial advice

If you leave most of your accounting functions to year-end tax season, you’re allowing a gap of 11 months without expert financial advice.

Outsourcing your accounting and bookkeeping to a business like Enkel will allow you to have a customized bookkeeping process that works for your business and a team of professional bookkeepers managing your day-to-day financials. You'll receive valuable, actionable financial data to make sound business decisions.

4) You want to understand your cash flow

Knowing when and where your money is coming from can help you make strategic business decisions for the long haul. For example, if your company operates within the wedding industry, you’ll know that the summer is your busiest season. But are you losing money on excess staff during your quieter months? A reliable bookkeeper can support you with cash flow statements, helping you understand where you’re losing money and where you should invest your efforts.

5) Your year-end accounting bills are too high

If you’re managing your books until tax season and then passing things off to an accountant, your year-end bills will likely be pretty high! By maintaining proper records year-round, you’ll save significantly when filing taxes.

6) You're looking for tax-saving opportunities

A trusted bookkeeper will always be looking out for your best interests. As a small business owner, you may be unaware of the tax-saving opportunities available to you. Are you recovering all of the GST that you’re spending? Leave the number-crunching to the experts - we’ll get your back.

7) You want to keep your financials up to date

Keeping your financial information accurate and up to date reduces innumerable headaches. A good outsourced bookkeeping partner will ensure that the data in your accounting software is always accurate and kept up-to-date. You'll always have someone staying on top of your numbers and committed to delivering regular monthly financial statements.

8) You're looking to reduce audit panic

Being audited can happen to anyone, and it’s stressful even in the best-case scenarios. Knowing that your books are up to date and carefully documented can relieve almost all of the headaches associated with an unexpected audit. A good bookkeeping service will properly document and record your financial records, helping you move through the auditing process with ease.

9) You want to make life easier

You're busy enough when it comes to owning and operating your own business! Managing employees is time-consuming; an outsourced bookkeeping service provides a set-it-and-forget-it service. We’re here when you need us and working quietly in the background when you don’t.

And the number one reason why you may want to consider outsourcing your accounting functions?

10) As an entrepreneur, you're always looking for a better way

You started a business because you saw a better way of doing things. I’m an entrepreneur myself. I started Enkel because I saw a better way of providing bookkeeping services to small—to medium-sized businesses. That shared entrepreneurial spirit drives us to always look for a faster, smarter, better way of doing things.

Making Outsourcing Work for You

Here are some common misconceptions about outsourcing services such as bookkeeping and accounting, followed by details about what to expect when outsourcing your bookkeeping functions.

Alignment of Expectations

When you outsource a business function, aligning expectations with your service provider is essential. Alignment allows both the service provider and the client to ensure that they can easily identify successes and failures. This is actually one of the biggest benefits of outsourcing—once your parameters are defined, you can simply focus on results.  

At Enkel, we spend a lot of time discussing processes with our clients. We map out the details of what we need you to do in order for us to deliver your month-end reporting on time. Then, we’ll clearly outline what our role is, so that our clients are clear on exactly what services they can expect.

Value-Based Pricing

Cost is always a key influencer when businesses decide to outsource functions. Outsourcing allows an organization to lower administrative costs, improve balance sheets, and reduce business risk.

Value-based pricing refers to when providers set the price of a service based on the benefits it provides to their clients rather than the actual cost of the service. Instead of charging clients an hourly rate, many outsourced services will offer flat rate packages. Forget worrying about paying your bill whenever you need your service providers—simply select a package that works for your business.

Collaborative Workflow

Cloud-based software such as QuickBooks Online and Xero allow you to work from anywhere. Whether you’re at your office computer, home computer, or mobile device, you can access your data. This makes collaborating with an outsourced team easier than ever.

Ultimately, outsourcing your non-core functions allows you to free up time to focus on what you do best. However, to maximize your outsourced services, you’ll need to know your involvement in the process. For example, at Enkel, we require our clients to send us their invoices in order for us to process payments. We can help you automate your invoices, making life far easier! But we can't complete your reconciliation if we don’t receive the invoice.  

Process Buy-In

Process development takes considerable time on the part of the service provider, and as the client, you will benefit from in-depth discussions about processes. They will bring clarity to the whole picture.

Final Thoughts

Our processes for providing quality monthly financial reporting have been developed with our clients’ best interests in mind. We’re happy to explain the logic behind our processes because your buy-in is essential to providing a strong service.

Outsourcing your non-core functions is a powerful way to begin improving and growing your business. Your time is valuable—learn how to focus more on what you do best! We’re happy to discuss your unique business goals and how outsourced financial services can empower you to grow.

If you are looking for an efficient and accurate way to get your books done, we can help! Get in touch with us today to learn more about our outsourced bookkeeping and accounting services.

Omar Visram
About Omar Visram
Omar Visram is the Co-founder and CEO of Enkel Backoffice Solutions Inc. Headquartered in Vancouver, Enkel provides bookkeeping, payroll, accounts payable and accounts receivable services to over 300 organizations Canada-wide.