Are you buried in paperwork? Running a business requires expertise, organization and a level of commitment that only you can bring to the table. But as you’ve probably discovered, there is a mountain of paperwork, bills must be paid and your checkbook must be reconciled on a timely basis. Click on Full Article to determine if your time is better spent on generating sales and leave the bookkeeping to the professionals.
You might think your company saves money by handling bookkeeping and accounting services in-house. But many companies find that’s not the case. Let’s take a look at some of the advantages of outsourcing these time-consuming and complex chores:
- You gain access to high-level accounting skills without having to hire or train qualified personnel.
- You reduce or eliminate potential errors, omissions, fraud, and other problems that can crop up by doing accounting and bookkeeping in-house.
- The time and resources spent keeping the books can be spent on more important, profitable activities in your business.
- You might actually save money with outsourced accounting and bookkeeping services. Consider all the costs of doing it in-house, such as recruiting, salaries, taxes, training, paid time off and benefits. For many companies, it is cheaper to turn these important tasks over to professionals who specialize in them. You eliminate the need for an employee doing the work, which cuts expenses for office space, payroll tax, worker’s compensation and benefits.
- Your business stays in compliance with laws and regulations.
You have three basic choices:
- You can complete these tasks yourself, although it means taking precious time away from actually running your business.
- You can hire a full-time bookkeeper to take care of the daily tasks in-house, but you’ll have to provide office space, pay wages plus fringe benefits, and find the time to oversee the bookkeeper’s work.
- Or… you can choose a hybrid approach. Many business owners create their own billing, managing to attend to their day-to-day accounting duties. Then, they rely on professionals to manage the rest of the accounting functions, ones that are often time consuming or sophisticated. This also creates a Checks and Balance approach (Read our other article on Using QuickBooks to Prevent Fraud)
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Outsourced bookkeeping duties may include:
- Managing collections and other Accounts Receivable duties
- Ensuring that bills are checked for accuracy and paid by or before their due dates to keep you in good standing with your vendors
- Keeping track of payment terms and make sure you pay within the discount period so you get the lowest price available
- Handling vendor calls, and alert you to possible problems
- Monitoring sales tax charged (or not charged) by vendors
- Keeping your checkbook up-to-date
- Reconciling your checking account with your bank, as well as credit card statements, on a monthly basis so you always know what is available to you
Outsourcing bookkeeping and general accounting mean different things to different businesses. Our services commonly include basic bookkeeping, accounts receivable, accounts payable, payroll, strategic plans and budgets, internal auditing and more. Some employers outsource all transactions and do not keep a bookkeeper in-house. Other employers have bookkeepers on staff, but realize they have limitations and want the oversight of another professional for certain accounting transactions. Or their in-house bookkeepers may not have the time or experience to take on some tasks.
Technology In A Box Learning Services, LLC offers basic accounting courses and QuickBooks® training throughout Michigan. Christine specializes in developing accounting systems and training materials for business owners, bookkeepers, franchises and accountants across the country.
