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Bookkeeping Warning Signs & When To Outsource

When should you consider outsourcing your bookkeeping? What are the benefits of outsourcing? In today’s post, we’re going to share some bookkeeping warning signs and then discuss the benefits of outsourcing your bookkeeping.

Bookkeeping Warning Signs

  1. Unable to keep up - The first sign that a change in your systems is required is if you are not keeping up with the books regularly. Client service, HR, and general administrative work have consumed the owner’s time and they no longer have the necessary time to devote to the books. Volume could also be a reason why a business owner isn’t keeping up.
  2. Complexity - The second scenario is when the accounting has become more complex as the business has grown. It may be simple to keep a handle on things when you’re a one-man show, but with 10 employees, how do you monitor and keep the whole team marching in the same direction financially?
  3. Experience - The third sign is that you may not have any idea where to start with bookkeeping. You may be a right-brained individual with a creative gift, but organization and attention to detail with numbers is not a strong suit. When the books are not updated regularly and accurately, the business owner does not know where they’re at financially.

All three of the bookkeeping warning signs contribute to the owner operating blind financially. This is not a good place to be in. It’s too competitive out there to not be making strong, data-based decisions about your business.

Benefits of Outsourcing Bookkeeping

  1. Time/Opportunity Cost – think of how much time you will get back if you are not responsible for all the data entry. If your time is worth $100 per hour and you get 6 hours back per week, you can earn an additional $600. At the same time, the cost to hire a bookkeeper is likely a fraction of the gains you can experience. It actually costs you more money to keep doing your books than to outsource.
  2. Expertise – As the old saying goes, you can’t beat the professional at his profession. The expertise of a professional is going to include industry knowledge, software experience, and efficiencies. The right bookkeeper will find things to correct that will make your data more useful while also saving time.
  3. Peace of Mind – this is the comfort that your books are up-to-date and accurate at all times. You can review reports to make decisions as they arise without the stress of catching up the books.
  4. Control – Business owners often gain more control over their business because they can focus on the other tasks yet retain a better pulse on the financial operations of the business. Tools like Bill.com can allow the owner to maintain control of all bill payments without having to enter and review every bill. Abacus and Expensify allow greater internal control of credit card spending with far less data entry.

If you are experiencing any of the bookkeeping warning signs in your organization, it might be time to consider outsourcing your bookkeeping.