There are many reasons why business owners may consider outsourcing accounting and finance functions. Since launching Enkel Backoffice Solutions, I’ve had the opportunity to have conversations with business owners of varying sizes, in a wide variety of different industries. Ultimately, the pain points I come across with business owners are fairly universal. We all want to save money, save time, and make better financial decisions.
Outsourcing your accounting and finance functions is a smart, affordable way to begin making wiser financial decisions for your company. Here are the top reasons you may want to consider outsourcing accounting.
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, it simply isn’t cost effective to maintain a full time accountant or bookkeeper on payroll.
2) Or you want to save time.
As a small business owner your core focus is on 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 subsequently money - away from what caused 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’re leaving the majority of your accounting functions to year end tax season, you’re allowing a gap of 11 months without financial advice from an expert. Having professional bookkeepers manage your finances is one of the best ways to turn your financial data into useful, actionable information.
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 help you understand where you’re losing money, and where you should be investing your efforts.
5) Your year-end accounting bills are too high.
If you’re managing your own books until tax season and then passing things off to an accountant, chances are your year end bills are going to be pretty high! By maintaining proper records year round, you’ll save significantly when it comes to 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 not even be aware 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’ve got your back.
7) You want to keep your financials up to date.
Keeping your financial information accurate and up to date reduces innumerable headaches down the line. Having someone on top of your numbers and committed to delivering regular statements prevents something from accidentally falling off your plate.
8) You're looking to reduce audit headaches.
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.
When it comes to owning and operating your own business, you’re busy enough! Managing employees is time consuming; an outsourced bookkeeping service provides you with a set-it-and-forget-it service. We’re here when you need us, and we’re 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 size businesses. It’s that shared entrepreneurial spirit that drives us to always look for a faster, smarter, better way of doing things.
If you’d like to discuss finding a better solution for your accounting services, let’s talk.