Small business owners often weigh every decision carefully, especially when that decision comes with a price. Because of the costs, some entrepreneurs may wonder if they should hire a bookkeeper to help handle the financial aspects of the business. Outsourcing accounting for small business books comes with plenty of benefits, from freeing up the owner’s time to improving financial information available to make decisions. Knowing those benefits can help you sell your accounting and bookkeeping services to potential small business clients.
Time Management for Owner
The clearest reason for a business owner to outsource bookkeeping is to free up time to work on actual business operations. Handling the books with little to no experience makes the process longer, as they may have to look up regulations or take longer to create reports. Too much time spent managing financial records takes time away from developing new products, forging strong relationships with customers, or devising long-term strategies. Those revenue-generating activities help businesses grow, so it’s important to spend enough time on them. A professional bookkeeper knows the fundamentals of keeping books, which makes it faster and easier to handle the finances for a small business.
Timely Information for Decision-Making
Finances often influence the decisions business owners make. A strong understanding of the current financial situation and the potential financial impact of different options can help make informed decisions that support growth. By using a bookkeeper, small businesses have better access to that financial information. Bookkeepers regularly manage and create the company’s financial reports to keep that information up-to-date and readily available. These on-demand reports help clients when they want to assess a risk, opportunity, or new idea. A small business owner without bookkeeping knowledge may not know which reports to generate or how to create them effectively. Sometimes, the bookkeeping tasks can fall behind when the owner gets pulled in different directions, which makes it difficult to look at the current financial information quickly. With easy access to financial reports, business owners can make faster decisions related to sales, customers, overhead, profit, and other issues.
Financial Reporting Accuracy
Bookkeepers have financial expertise, which means outsourcing the work increases the accuracy of financial reports. Bookkeepers are familiar with various types of records and the types of information businesses need in different situations. Instead of the business owner researching accounting rules, learning how to use software, and putting together their own financial reports, bookkeepers handle all of this for them. That saves time, money, effort, and energy and reduces the risks of small errors that can completely throw off the information.
Efficiency of Tax Return or Audits
Taxes play a large role in running a business, but not all small business owners have the time to keep up with the latest tax regulations and changes. They may be unsure of how to record expenses, store receipts, and manage necessary tax documents. Working with a bookkeeper simplifies tax time because the financial pro can provide advice and help create the records necessary for filing taxes. 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 smoothly.
Bookkeeping services for a small business help save time, money, and frustration. These services let the business owner focus on running their business and receiving accurate financial reports to make quick business decisions. Using robust accounting software to help your bookkeeping clients makes your job easier. QuickBooks Online Accountant helps you manage projects, tasks, and clients together. Sign up for free.