Why do you need an outsource bookkeeping and accounting service?

Aug 23, 2022

Outsourcing is hiring another company or individual outside of your own to manage various business-related processes and activities. Outsourcing can be a great way for businesses to save time and cost.

 

Bookkeeping and accounting are important tasks for businesses of all sizes. However, many small businesses may find it challenging to maintain accurate financial records in-house. This can be time-consuming and expensive.

 

Outsourced accounting, therefore, means hiring a service that provides a full accounting department experience. If you own a small business, you know that bookkeeping can be a headache.

 

Here are some of the most common pain points small businesses face when doing their own bookkeeping:

 

 

Too much time and effort to keep track of your finances.

 

Instead of spending hours doing your own bookkeeping and accounting, you can spend your time focusing on your core business and important tasks that will help you to grow your business. Bookkeepers and accountants help businesses keep track of finances and manage their books by handling all of the paperwork and record-keeping for a business.

 
Finding, hiring, training, and retaining staff with the right skill set to handle business finance can be time-consuming and expensive.

 

Many small business owners don’t have the budget to hire a full-time employee to handle the day-to-day bookkeeping tasks. What more to hire a full team of finance professionals to help manage the finances of the company? Outsourcing these services is a cost-effective and convenient option for many business owners.

It can be a risk of internal fraud and risk of error if hiring a single employee to “keep the books” because once the employee leaves the business the entire financial history may be lost. Without the necessary resources to delegate accounting functions to separate teams, it can be difficult to manage your finances.

Financial integrity is very important for any company looking to properly manage their financial assets and eliminate risks of fraud or errors within the books. That’s why it’s recommended that small business owners outsource their accounting and bookkeeping functions to a third-party firm that specializes in handling small business finances.

By outsourcing these tasks to a team of experienced accounting professionals you’re ensuring that your financial transactions are handled with care and expertise, and can save you a lot of money by allowing you to benefit from an experienced team of bookkeepers and accountants at a fraction of the cost of hiring them in-house.

 
Stress for not being able to meet compliance deadlines and reporting requirements.

 

Small businesses need to comply with numerous state and federal regulations in order to remain compliant and avoid incurring costly fines and other penalties. Failing to meet compliance requirements can have a serious negative impact on your business’s bottom line and may even lead to legal action against your company.

Keeping up with all of these compliance requirements can be extremely time-consuming and stressful for small business owners who are already struggling to keep up with the day-to-day demands of running their business.

Working with a third-party accounting firm can help alleviate many of these burdens by providing assistance with record keeping, account reconciliations, financial statement preparation, tax filings, tax planning, and more.

 
Small businesses sometimes feel lost because they don’t have any experience in doing their bookkeeping tasks and they have no idea where to start.

 

Hiring an accounting firm can provide you with access to a team of experienced bookkeepers and accountants who will be able to guide you through the process and ensure that all of your transactions are properly recorded and maintained. An accounting firm can also serve as a trusted advisor by offering valuable business and financial advice that can help your company grow and succeed.

An experienced accountant can also provide invaluable advice to help you improve your business practices and identify areas of improvement that can help you save money and reduce your expenses.

 

 

How do we start to outsource the bookkeeping and accounting process?

 

It may be time to outsource your bookkeeping if: DIY bookkeeping is taking up more time than you can afford. Your books are never up to date. You’ve missed out on tax and other compliance submission. Your books are a mess, and you don’t know where to start. You’re also not sure if you’re doing it right. You’re not comfortable with bookkeeping or accounting. You’re growing too fast, and your current bookkeeping system can’t keep up.

 

There are many types of accounting services that businesses can outsource. These include bookkeeping, payroll, invoicing and collections, tax preparation and filing, financial statement preparation, and more. Many small business owners may not even know exactly what services they need, and an outsource accounting firm can provide direction with this as well. The first step is to identify what tasks you want to outsource. Once you have a list of tasks, you can start to look for a bookkeeping and accounting outsourcing provider.

 

There are many bookkeeping and accounting outsourcing providers to choose from. Do your research and choose a provider that you can trust. When you have chosen a provider, you will need to sign a contract. This contract will detail the scope of work and the terms of the agreement. Make sure you understand the contract before you sign it. If you have any questions, ask the provider for clarification. Once the contract is signed, you can start to outsource your bookkeeping and accounting tasks.

 

Outsourcing can be a great way to improve your business’s bottom line. More and more businesses are turning to outsourcing as a way to save time and money and help you focus on your core business. If you’re thinking about outsourcing your accounting, contact us at hello@profiterra.my today to learn more. We’ll be happy to answer any questions you have.

 

Get started with outsource bookkeeping and accounting today!