As an electrical contractor, you spend a great deal of your time on the road, traveling to different job sites and dealing with multiple clients. Your job keeps you busy, and you probably find yourself working extra hours each week just to meet your contract obligations.
Bookkeeping likely isn't something you have a lot of spare time to complete, yet it is a necessary component to running your business.
Keeping your books current will give you the financial visibility required to run your business and make crucial decisions. If you cannot spend a sufficient amount of time keeping your books up to date, it may be time to consider outsourcing to a professional.
The top four reasons to consider outsourcing include:
1. Saves you time and money
Outsourcing your bookkeeping can result in significant cost efficiency because an outsourced bookkeeper typically costs less than hiring one in-house. Plus, you don't have to pay the additional costs associated with vacations, benefits, and payroll deductions.
Outsourcing your bookkeeping can help you save time as well. You don't have to worry about training and managing a bookkeeping staff member. Bookkeeping is a time-consuming activity, and it can take up a lot of your spare time if you don't have a dedicated resource working on it for you.
Having outsourced professionals taking care of your finances will relieve a massive time burden, letting you focus on obtaining new clients and contracts and working on key projects instead of worrying about the accuracy of your books.
2. Access to experienced, tech savvy bookkeepers
Outsourced bookkeeping firms tend to utilize cloud-based accounting software and accounting tools to help clients manage their books.
Outsourcing to a bookkeeping firm will ensure that you are working with trained and experienced bookkeeping experts to help your electrical contracting business transition to a cloud-based accounting software like QuickBooks Online and Xero. They will also have experience with other accounting tools such as Dext Prepare and HubDoc that can help simplify your bookkeeping processes and keep your documents stored safely in the cloud.
Some outsourced bookkeeping firms, like Enkel, can also help you manage your payroll and accounts receivables functions. This way, you don't have to worry about hiring more staff to cover these additional yet crucial tasks.
3. Year-round reliable bookkeeping
Consistent, streamlined bookkeeping will help you understand how your business is performing throughout the year, giving you insight into profit margins and assisting in the job costing process. It will also help you keep your accounts clean, accurate, and up to date in order to improve your financial reporting process.
An outsourced bookkeeping team keeps all of your transactions organized, provides proper revenue recognition, and will assist with your bank and credit card reconciliations, sales tax filings, and coding of transactions. They can generate timely cash flow statements, balance sheets, and income statements, so you always have visibility on your financial health.
A team of outsourced bookkeepers can help track invoices and follow-up on outstanding accounts as well as keep track of the profitability related to each of your individual projects. This will help keep your accounts receivables up-to-date while you are awaiting payments.
Another vital task that your outsourced team can assist with is aiding your business in keeping track of your expenses to always know where your cash is going and can easily identify areas where you may be overspending.
4. Gives you clear cash flow and financial visibility
An outsourced bookkeeper will be able to help you set up your chart of accounts in a meaningful way so that you can draw vital insights from your financial reports. By keeping your books up to date and accurate, you will be able to monitor the cash flowing in and out of your business and will be able to identify whether your cash flow is headed in a positive or negative trend.
You want to be able to identify potential cash flow issues before they arise and invest your cash into areas of the business that can increase profitability. Some outsourced bookkeeping teams can also provide you controllership services, assisting you with creating budgets and cash flow forecasting as well.
If you are looking for a way to save your business both time and money while obtaining access to complete financial visibility, outsourcing is the solution you need.
When you choose Enkel to assist your electrical contracting business, we provide you with access to a team of experienced bookkeepers who work together to give you all of the bookkeeping and back-office accounting help your business needs. Contact us today to find out how we can work with you to help your business succeed.
How We Select and Evaluate Our Recommended Software
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.