.png)
If you’re a business owner who currently handles their own bookkeeping and you’ve found your way to this article, then you have probably already have considered outsourcing your bookkeeping to a local accountancy practice.
Managing your finances and maintaining accurate bookkeeping records are key to the successful running of a business, neglecting such practices can lead to multiple problems in the future. Even if these issues aren’t fully apparent now, they can include meeting tax obligations, loan applications and profitability in the future to name just a few.
Not all businesses have the resources and big budgets accessible to handle their bookkeeping ‘in-house’, therefore, the majority of well run small to medium sized businesses actually understand the benefits of outsourcing their bookkeeping to a local trusted accountant such as Blue Rocket Accounting.
The top 5 business types most likely to outsource their bookkeeping management include; Real Estate, Insurance, Manufacturing, Retail and Wholesale and Healthcare. Our bookkeeping clients also include; Construction, Beauty and IT businesses.
If you’re debating outsourcing, how do you know if now is the right time for you and your business?
Well, here at Blue Rocket Accounting, we love seeing businesses of all shapes and sizes succeed, that’s why we’ve created this guide to help you decide if now is the right time for you to outsource your bookkeeping management.
Let’s take a look.
The Bookkeeping Outsourcing Process
One thing that may be putting you off outsourcing your bookkeeping, is the process that it takes to do it.
The reality though is that it can actually be quite straightforward, and often follows these five steps:
- Research Bookkeeping Services – The first step is to do your research and make sure you pick the right bookkeeper for you. Make sure to check reviews and do your research into what each company can provide, as well as making sure you will get on with the chosen team and will enjoy working alongside them.
- Communicate Your Requirements – Once you have got your chosen team picked, you must let them know exactly what it is you need and allow them to build a bespoke package that is tailored towards the needs of your business. The bookkeeper should send a proposal providing prices, timelines, as well as detailed processes of what will happen going forward.
- Set up Communication and Get to Know Your Chosen Team – Now you have to get to know the team and build a relationship. With the next steps that are coming, you may need to be inconstant contact so make sure you have lots of ways of getting in touch and that you are comfortable talking to each other and working together.
- Plan the Transition – Now the transition begins. This is when all of your previous and current data is transferred across to the new team, including all necessary receipts, invoices, and other relevant documents. Work with them to help your system integrate with theirs and provide all access required into your software.
- Transfer Data and Integrate Systems– If relevant to your current operation, the final step is giving the greenlight for a data transfer and start the process. Once this is done, your chosen bookkeeper will have all of the information and access required to get to work and start handling your books and tracking your finances.
Sounds simple? Well, it can be, but how do you know when the time is right?
Well, here are seven key signs.
7 Signs It's Time to Outsource Your Bookkeeping
1. You Don’t Have the Skills Or Knowledge to Do It Yourself
Bookkeeping isn’t easy, and if your workforce lacks the expertise to perform it in an efficient and accurate manner, then this could lead to issues.
There are many things to consider with bookkeeping, such as keeping up with tax regulations for example, so if you are unaware of these you could end up with problems later down the road.
An outsourced service will help to ensure accurate and compliant management of your finances which is a vital element of all successful companies.
2. You Don’t Have the Time
Time is a big factor when it comes to bookkeeping, and many businesses who find their staff making the most of every minute of their nine to five simply don’t have the time to keep track of their finances.
If this sounds familiar, then this is a big sign it is the right time to outsource, as you may end up rushing your bookkeeping otherwise which can lead to inaccuracies and miscalculations.
It also leads to many businesses pushing their bookkeeping to a side, so when the time comes to depend on your figures, you to have to work back through months of scraps of paper and poorly documented information.
3. You’re Expecting Your Business to Grow
Most businesses want to scale.
With more customers often comes more revenue, but it also means many more transactions.
If you’re selling more, you will also be buying more stock, and you may find yourself with more staff to care for the new influx of business action.
All of this has to be accounted for, so if you’re already struggling to keep on top of your finances and you know things are going to get even busier soon, it is a good time to outsource so you know it can be handled properly.
Outsourcing is also a great way of taking care of your bookkeeping without having to train or hire new staff to handle it, and the service you get can be flexible to suit your everchanging needs.
4. You’ve Seen Too Many Mistakes
Mistakes can be costly when it comes to bookkeeping.
If you find that you have inputted your figures incorrectly and are having issues complying with tax regulations, then this can have major consequences.
If you are noticing a lot of discrepancies in your numbers, then this is a sign that you may need to outsource to a professional who cannot only track and store all of your data in an accurate and efficient way, but who can also stay on top of all regulations so you don’t have to.
5. Other Areas of Your Business Are Being Neglected
If you’re a business owner and you constantly find yourself locked away with a ledger for hours trying to handle your bookkeeping, other areas of your business may be missing out.
This is the perfect time to outsource, as this will free up all of the time you have spent going through your financial figures and allow you to use it to focus on achieving your core business objectives and goals.
In a nutshell, you can spend more time improving your cashflow, rather than counting it, safe in the knowledge everything is being handled by a professional.
6. You Feel Like a More Comprehensive System Would Be Better for Your Business
Businesses change and adapt with the times, and if you are finding that your company is starting to see more complex financial transactions as it grows, then it may be time to look for someone who can handle it.
If you’re still writing down figures in a ledger and not using some of the innovative software available, then you’re wasting time and not making the most of some amazing features.
Everything from international operations to multiple revenue streams can be handled by a professional bookkeeper and done so in a way that simplifies it and keeps everything on track and easy to understand.
7. You’re Looking to Save Money
We know what you’re thinking, how can spending money on an accountant help me save money?
Well, while there is an associated cost, it will more than likely be less than how much your current bookkeeping process is costing you in time, workforce power, fines and misused software. A qualified bookkeeper will also be able to identify areas you can make essential financial decisions which can help you drive revenue or even areas you can save money.
For example, if you are paying staff to spend hours recording your bookkeeping data and transactions in lengthy manual processes, this will quickly add up. When actually a better alternative could be that their billed hours are dedicated to growth and business function roles.
Outsourcing your Bookkeeping with Blue Rocket Accounting
If you’ve read through the list above and it all sounds very familiar, then maybe you should look to outsource your bookkeeping with Blue Rocket Accounting.
Our team of experts will get to know you and your business and provide a bespoke service tailored to the exact needs of your company.
Want to know more? Then get in touch today. And in the meantime, why not head over to our bookkeeping page to read on about what we can do to boost your bookkeeping.
.png)
