Too often, eCommerce business owners are frightened by the idea of outsourcing business functions. There is a certain stigma associated with outsourcing work, which is unfounded. Many people fear losing control of the business they have built from the ground up.
Luckily, these apprehensions are not true when it comes to outsourcing your eCommerce Bookkeeping. In fact, a business can actually experience a whole host of benefits by hiring an experienced professional to do the work.
Reason #1 - It will save you time
We could all use a little more time, right? As a busy eCommerce business owner, your days are undoubtedly overflowing with all the activities that have made your business what it is. Plus, your time is of the utmost importance for growing your business to its full potential tomorrow. Outsourcing your bookkeeping will help you focus on essential aspects of growing your business while leaving the important administrative task of bookkeeping to someone else.
- Expert Handling of Bookkeeping Tasks: Outsourced bookkeepers can efficiently manage complex accounting tasks. This proficiency allows them to complete bookkeeping tasks faster than someone with less specialized experience.
- Streamlined Financial Processes: Professional bookkeeping services can help streamline financial processes through automation and established bookkeeping software, leading to quicker completion of tasks such as invoicing, payroll processing, and financial reporting.
- Quick Access to Financial Reports: Outsourced bookkeeping services can provide faster turnaround on financial reports and analysis, helping business owners make timely decisions without the delays of compiling and interpreting financial data internally.
Reason #2 - It will save you money
When people think of outsourcing, they immediately imagine high-cost services that slowly leach their company of its hard-earned profits. This couldn't be further from the truth. In fact, outsourcing your eCommerce bookkeeping actually works to save your company money in the long run. A professional bookkeeper will help you save on labour costs, create better budgets, and reap the most tax benefits at the end of the year. Let's break these out:
- Employing a full-time or even part-time bookkeeper can be expensive, considering salary, benefits, and training costs. Outsourcing can reduce labour costs as you pay only for the service without additional employment costs.
- Outsourced bookkeeping services employ experienced bookkeepers who can handle accounting tasks more efficiently and accurately than someone who might have multiple roles in a small business. This expertise can reduce errors and the need for corrections, saving money and time.
- Outsourcing bookkeeping services can be scaled up or down based on the business's needs, ensuring you're not paying for unused labour during slower periods.
- Outsourcing bookkeeping services eliminates the need for additional office space, software, and supplies that are necessary for an in-house bookkeeper. This can significantly reduce overhead costs.
- Outsourcing firms often have access to the latest bookkeeping software and tools, providing small businesses with advanced resources without purchasing expensive software or managing IT infrastructure and updates.
- Professional bookkeepers stay current with accounting and tax regulations, which can help ensure that your business remains compliant and avoids costly tax or financial penalties.
Reason #3 - Your Books Will Be in Better Shape
Most businesses start out by relying on DIY bookkeeping as the business launches and starts its early growth cycle. While prudent in the early stages of a new small business, this approach soon becomes counter-productive. Once the business begins to grow, it is vital that its books are as accurate as possible for several reasons. Bookkeeping data provides vital information for budgeting and planning for future growth. Growing businesses also attract more attention from tax authorities. So, it is vital that a company’s books are in the best shape possible in case your tax authority decides to challenge your tax returns or your expense claims. An outsourced bookkeeping service will do bookkeeping more accurately than in-house, non-accountant administrative staff.
Reason #4 - It will help you stay organized
One of the biggest keys to success is staying organized. A neat and orderly business runs like a well-oiled machine. When you outsource your bookkeeping, you are handing over your finances to a professional who will keep your books neatly balanced and available for review when you need them most. Here's how outsourcing helps small business owners stay organized:
- Elimination of Routine Tasks: Bookkeeping involves many routine and repetitive tasks, such as data entry, managing invoices, processing payroll, and reconciling bank statements. Outsourcing bookkeeping removes a major portion of a business owner’s daily administrative burden, allowing for more focus on business strategy.
- Reduction in Distractions: Financial management can be a major distraction for those not trained in it, with its complex details and compliance requirements. When professionals handle bookkeeping duties, business owners can concentrate on what they do best—developing their products or services and engaging with customers.
- Enhanced Decision-Making: Business owners receive timely, accurate financial reports and insights when experts handle bookkeeping tasks. Having clear and current financial data allows a business to make informed decisions quickly without getting bogged down in generating and analyzing financial data themselves.
- Avoidance of Overload and Burnout: Running a small business is demanding, and the added stress of bookkeeping can contribute to overload and burnout. By outsourcing this function, business owners can maintain a clearer focus and better work-life balance, which is beneficial for their overall productivity and well-being.
Reason #5 - It will give you a better understanding of your business financials
Understanding your business's current position in the marketplace at any given time is imperative to your success. Outsourcing your bookkeeping will provide you with the critical advantage of always having an exact picture of your current cash flow, giving you the upper hand when it comes to making strategic business decisions. They will provide the bookkeeping data that is vital for measuring a company's financial success and ensure you have the metrics to monitor your business' performance.
It also connects you with a professional who can assist with issues such as foreign currency exchange and inventory management. An expert can provide all of the vital answers you need about your company's financial statements and can give you a more thorough understanding of the cost of goods sold. This necessarily makes it easier to make strategic decisions about ensuring business efficiency.
Reason #6 - It will put your business’s finances in the hands of an expert
When running an eCommerce business, success will depend on a few important attributes: your industry knowledge, your level of ambition, your ability to overcome obstacles, and your level of expertise. While you may be an expert in growing your business, chances are you are not fully proficient in bookkeeping, nor should you be.
Your skills are much better put to use elsewhere. When you outsource your bookkeeping, you ensure that your business's financials are left in the capable hands of an expert - someone who knows the ins and outs of managing all of your diverse fiscal matters. They come with a depth of experience and a suite of accounting tools to accomplish your bookkeeping goals.
When it comes to dealing with budgeting, currency exchange, accounts payable and receivable, payroll, or financial reports, a professional bookkeeper is there to help and can provide vital insight on both the eCommerce industry as a whole and on your personal business matters as well.
Final Thoughts
To many, outsourcing their bookkeeping may feel like giving up control of their business, which can be scary. Fortunately, those who have given outsourcing a try find quite the opposite to be true. Handing over the tedious task of bookkeeping to an industry professional can actually be an empowering move. It allows business owners the time to focus on more important aspects of their enterprise, freeing up vital resources and giving them crucial insight that only a professional can offer.
Are you ready to take the leap into the world of outsourcing? At Enkel, we know just what your eCommerce business needs to succeed. Contact us today to find out how we can help with all of your eCommerce bookkeeping and accounting needs.
How We Select and Evaluate Our Software Recommendations
We thoroughly research and test the apps we include in our regular workflow for Client bookkeeping services. After deciding on criteria for evaluating the software and then researching the app itself, we tested the app, noting its strengths and weaknesses. We then work with the app for at least a few weeks before deciding whether to recommend it to our readers. We use the software as it was designed for its intended tasks. For a detailed walk-through of how we select and evaluate software, please see the details of our process.
