As a marketing agency owner, your days are spent consulting with clients and milking your creative juices. From creating marketing plans to devising advertising campaigns, your time is valuable. Devoting the required attention to your bookkeeping needs can often be a tedious chore, meaning your business’s financial requirements may get pushed to the side.
One of the best ways for you to stay up-to-date on your agency's bookkeeping needs is to outsource. Outsourcing gives your company the advantage of always having access to current financial data without having to slave over books and numbers for hours at a time.
The six most significant benefits to outsourcing your marketing agency's bookkeeping are:
1. Up to date bookkeeping
Outsourcing your bookkeeping will help you keep your books organized, accurate, and current. This will give you the advantage of improving your financial reporting ability. To manage your business's cash flow, you must monitor your revenue and collection patterns closely.
However, most agencies lack both the time and the resources to do that. By hiring an outsourced bookkeeping firm to help your organization keep track of your billings, billable expenses, and hours worked, you can have accurate records of each project that you are working on.
An outsourced bookkeeping firm can help you track your overhead expenses, payroll and will balance your books accurately. They will keep your finances and transactions organized to provide proper revenue recognition among different marketing campaigns and projects.
Not only will this give you immediate access to all of the financial data that your business requires on a daily basis to make sound business decisions, but it will also keep your books up to date throughout the year, saving you a significant amount of time and money in the long run.
2. Full financial visibility
Having complete financial visibility is crucial to the success of your business. To obtain this, your numbers must be current and accurate. Outsourcing your bookkeeping can help you generate up-to-date reports that show how your business is performing financially.
An outsourced bookkeeper can help you generate cash flow statements, balance sheets, income statements, budget to actual reports on current campaigns, allowing you insight into your business's profitability. This complete financial visibility can help you create reliable budgets for future projects and identify any potential cash flow issues before they arise.
3. Stress-free tax season
Tax season is one of the most stressful times of the year for a business. Most companies find themselves scrambling to provide their accountants with the data they require to properly file their taxes, causing anxiety levels to run high. When you choose to outsource your bookkeeping, you can kick back and relax. Your bookkeeper will ensure that your books are organized, and your financial statements are in order.
You will have a set of updated financial statements that you can share with your year-end accountant, making filing your taxes a breeze. Plus, if your accountants have any questions, they can contact your outsourced bookkeeping team for answers instead of having to hassle you.
4. Access to accounting experts
The chances are that your primary area of expertise lies in devising creative marketing strategies for your clients - not dealing with numbers and financial reports. Fortunately, when you outsource your bookkeeping, you don't have to be an expert in this area. Outsourced bookkeeping teams are made up of experienced bookkeepers that have worked in the field for several years. They understand the various accounting requirements for each industry and the best practices and tools for managing your unique bookkeeping process.
An outsourced bookkeeper can help you set up your chart of accounts so that you get the most valuable business insights from your bookkeeping. For example, if you have team members working on a specific project, you will want your Cost of Sales to include their payroll expenses. At the same time, the payroll for your admin staff will be listed under overhead payroll expenses.
An outsourced bookkeeping team will work from a remote location and, therefore, will use cloud-based technology to manage your books and communicate with your team. They will also be able to recommend and implement the top cloud-based accounting software for your business as well as other accounting tools that will go a long way towards streamlining your processes.
5. Saves more time
It's no secret that bookkeeping can take up a big chunk of your time. It can also distract you from revenue-generating work like finding potential clients and running marketing campaigns. By hiring an outsourced bookkeeper, you can save time manually entering data and other bookkeeping tasks while still getting the accurate financial reports you need to make the best possible business decisions.
An outsourced bookkeeper can save you a substantial amount of time on training, hiring, and managing an in-house bookkeeper. This will result in cost efficiency as someone will be personally taking care of your finances, saving you money on training, vacation time, and other benefits as well.
6. Lowers payroll costs
Did you know that outsourcing your bookkeeping can cost between 30%-50% less than hiring someone in-house? Outsourcing can save you and your company a significant amount of money in the long run. A professional bookkeeper will help you save on payroll deductions, benefits, vacation pay, as well as turnover costs associated with rehiring and training.
The benefits of outsourcing your bookkeeping are endless. You can save a significant amount of time, money, and hassle by trusting your books to an experienced professional.
Our team at Enkel can help you experience the advantages of outsourcing by using their skill and experience to keep your vital financial data current and accurate. Contact us today to find out how we can help streamline your marketing agency's bookkeeping process and help you grow to new heights.