Although it results in an additional expense, there are strong benefits for small business owners to outsource their accounting to a bookkeeper. Hiring outside help allows the owner to spend more time on business operations. It also leads to better financial information and potentially stronger finances. Keep in mind most small businesses fail with two years, and when you provide companies with timely information and detailed financial reports, you make it easier for them to stay on top of their finances. As a bookkeeper, your services can go a long way to help small businesses save time in the short-term and be better positioned for success in the long-term.
Time Management for Owner
The clearest reason for a business owner to outsource their bookkeeping is so they can focus on actual business operations. If your prospective clients spend too much time managing their financial records, that distracts them developing products, forging strong relationships with customers, or devising long-term strategies. So your prospective clients can focus on these aspects of the business, it can be critical to outsource back office functions such as bookkeeping and payroll.
Timely Information for Decision-Making
By using a bookkeeper, small businesses have better access to financial information. If a bookkeeper actively manages the company’s financial reports, information is almost always readily available. As a bookkeeper, you can pull specific reports based on management’s needs. These on-demand reports can be available whenever your prospective client encounters a risk, opportunity, or new idea.
If your prospective client manages the financial records by themselves, it is more likely there are outstanding financial records, and that makes it harder to access reports quickly. In contrast, with easy access to financial reports, your clients can make faster decisions related to sales, customers, overheard, profit, and other issues.
Financial Reporting Accuracy
In addition to getting information faster, outsourcing to a bookkeeper results in better information. Your prospective client may have a finance or accounting background, but this is what you specialize in. You know more about the financial record keeping of a business than they do and that ensures more accurate records. Instead of the business owner being forced to research accounting rules, learn how to use software, and put together their own financial reports, you handle all that for them. That saves time, money, effort, and energy.
Efficiency of Tax Return or Audits
When dealing with an audit or preparing a tax return, companies typically want to get the highest quality service for the lowest rate. When businesses use your bookkeeping services, their records are in order at tax time. That makes it faster and easier to prepare tax returns, and in the event of an audit, well organized records help the process to go more smoothly. This saves your clients time and money because they don’t have to pay a tax preparation professional or an audit specialist as much as they would if all their records were unorganized.
Providing bookkeeping services for a small business helps save time, money, and frustration. Your services let the business owner focus on running their business. Additionally, when you provide business owners and managers with accurate financial reports, you make it easier for them to make quick business decisions.