Most business owners start out by handling their bookkeeping and accounting themselves, mostly to save money and also to ensure that they have a handle on everything that is going on in their business. But then with time comes the realisation that you do not have the time to run your business and keep the books. You obviously cannot let go of the business, so you need to get help with your bookkeeping. The only question is should you invest in outsourced bookkeeping services or hire an individual bookkeeper. Here is what we have to say on the matter.
- Throughout the Year Access– When you hire an outsourced bookkeeping service you can be sure of the fact that you will have someone working on your account throughout the year. Since you don’t have to rely on one individual, you don’t have to worry about off days and sick leaves, whereas if you hire an individual, there will be days you will have to go without a bookkeeper.
- Access to a Team of Professionals– When you hire a service, you have access to a full team of professionals with experience in all areas of bookkeeping and accounting. You can rest knowing that no matter what issue may crop up in your finances, there will be someone on the team with the knowledge and expertise to resolve it.
- Accurate Reports– Everyone makes mistakes, this is true of bookkeepers and accountants as well. When you hire an in- house bookkeeper, chances are that you do not have anyone with the skills to cross check their work. However in an outsourced bookkeeping service, there are always professionals who check the books and reports before they are sent over to you.
- Less Stress– Sure having an in- house bookkeeper is less stressful than doing it yourself, but you still have to worry about whether he/ she got it right, is available, has the right software etc. With outsourced bookkeeping services, you need know nothing. You can relax and focus on your business.
Every businessman knows how important it is to have a good credit score; you don’t need someone from your outsourced bookkeeping firm to tell you that. You get to save money on stuff you want to buy, plus there is no expiration date on it. So it is no wonder that everyone wants a good credit score; the question however is how can you improve your score. Unfortunately the concerned bureaus are not forthcoming about how the scores are calculated, however we do know what factors can affect your credit score.
- Your Bill Payment History– One of the most important factors that determines your credit worthiness is how you pay your bills. Payments made on time improve your score, while consistent late payments adversely affect your credit score.
- Money Owed on Credit– How much money you owe on credit cards, car loans, mortgages or your credit utilisation is another major factor in determining your credit worthiness. The more you have taken out on credit, the lower your score is, so be careful how you use your credit cards. The length of your credit is also a factor. The longer or more consistent your credit history with the same creditors, the better it is for your credit score.
- A Balanced Mix of Credit– If you have a balanced mix of credit like credit cards, mortgages and the rest, the more favourable you appear to lenders. This signals that you are capable of taking financially responsible decisions.
- New Credit– If you are shopping for mortgages and car loans, well, it might temporarily affect your credit score.
We all know how important having a good credit score is to keep your business up and running, which is why we recommend you make wise financial decisions on the personal and business front. If you find that you need help, it would be prudent to involve your bookkeeper or accountant whether you have outsourced bookkeeping services or have an in- house team.
Entrepreneurs and business owners are slowly moving away from in-house and traditional bookkeeping to outsourced bookkeeping. The reason for this is evident- it is more effective, efficient and less stressful, plus you get to focus on running your business, instead of worry about your books and accounting. However despite all this, most entrepreneurs are not sure what they should expect from outsourced bookkeeping. So if you are new to the concept of outsourcing your bookkeeping, here is what you should expect.
- Save Time and Money– If someone were to ask us why they should outsource their bookkeeping, our answer would be “To save time and money”. Everyone knows how expensive and time consuming hiring and training a new employee, bookkeeper or accountant, in this context is. Now you don’t have to worry about that; investing in outsourced bookkeeping means that your bookkeeping firm will handle the hiring and training, while you focus on your business.
- Informed Business Decisions– In today’s business world, information and data are key to the healthy growth and development of any business. Outsourced bookkeeping firms have the expertise, personnel and technology to work your business’ numbers and provide you with a detailed report of what is driving your business. Your books can tell you what your business needs, provide information about trends and insights. You might not be able to make the best use of your numbers if you work with an in-house bookkeeper.
- Data Security– Outsourced bookkeeping firms utilise the best security technologies, secured servers and recovery systems to ensure that data in their control is kept safe and secure. All businesses are shifting to cloud services, as data can be kept safe. Your data couldn’t be in safer hands, not even in yours.
Your bookkeeping and accounting is the lifeline of your business. Do not ignore your books. Find out what works best for you and your business, so that you can do what you do best.
Everyone wants to be inspired. From the New York Times Bestselling author writing her 10th book, to the fashion designer seeking fresh new designs and patterns, or an entrepreneur or the owner of an outsourced bookkeeping business trying to keep her dream company going, all of us need and even seek inspiration- that one image, or that one quote that will make sense of everything, that will let you soar into the skies. All entrepreneurs and business owners will see dark, gloomy days that seem to never end, when you feel like giving up, when you feel all your efforts are naught and in vain. When you reach that point, remember that there is always a light at the end of the tunnel. Albert Einstein, Thomas Edison, Steve Jobs- all great men who didn’t have it easy.
If you are at a low point in life, wondering what you are doing or where your business is headed, here are some quotes that just might give you the drive to get up and carry on.
- “I have not failed. I’ve just found 10,000 ways that won’t work.”
Thomas A. Edison
- “But you have to do what you dream of doing even while you’re afraid.”
- “The cost of being wrong is less than the cost of doing nothing.”
- “If you can dream it, you can do it.”
- “Success is not final; failure is not fatal. It is the courage to continue that counts.”
- “Would you like me to give you a formula for success? It’s quite simple, really: Double your rate of failure. You are thinking of failure as the enemy of success. But it isn’t at all. You can be discouraged by failure or you can learn from it, so go ahead and make mistakes. Make all you can. Because remember that’s where you will find success.”
Thomas J. Watson
- “If you really look closely, most overnight successes took a long time.”
“The real test is not whether you avoid this failure, because you won’t. It’s whether you let it harden or shame you into inaction, or whether you learn from it; whether you choose to persevere.”
- “There are no secrets to success. It is the result of preparation, hard work, and learning from failure.”
- “Success seems to be connected with action. Successful people keep moving. They make mistakes, but they don’t quit.”
- “Many of life’s failures are people who did not realize how close they were to success when they gave up.”
Thomas A. Edison
These quotes are not just business quotes; they are life quotes as well. Whether in life or in business, these quotes can inspire you. So open your hearts and your minds. You are unique and you can achieve success; all you have to do is tide over the tough times. Let go off all the non-core business functions that are draining you; invest in outsourced bookkeeping services, payroll management companies, HR services and others. Once that is taken care of, you can focus on key business aspects. You have the power to decide which direction your business goes- up or down.
Most small business owners hesitate to outsource their bookkeeping. Despite all the facts, business owners find it difficult to trust bookkeeping service providers and hand over their books to them. Why? Simply because there are a lot of myths associated with outsourced bookkeeping, which is why we are going to debug five common myths and make things easier for you.
- Losing Control– Who wants to relinquish control over something vital to their business? No one. Your business is your baby after all, but what you need to understand is that if you outsource your bookkeeping you are in fact getting a tighter rein of your company. Once maintaining the books is out of your way, you have the time to focus on other tasks and manage your business. You will also be in a position to take better informed business decisions.
- Security of your Books– This is a major concern- will your books be safe with your outsourced bookkeeping service provider? Bear in mind that the bookkeeping business is as important to the bookkeepers as your business is to you. Taking adequate security measures is important to keep their business afloat, which is why all bookkeeping companies invest in the latest technology. Your books are as safe as they can be in today’s technology and cloud driven world.
- Outsourced or Overseas Bookkeeping Services– For most business owners, outsourcing implies overseas. While there are numerous companies who provide outsourced bookkeeping and other services overseas, the same is not true of all companies. Proper research is the only way to find out for sure.
- Accounting and Bookkeeping Software are Sufficient– Technology has changed the face of bookkeeping. Numerous software have made accounting and bookkeeping easier, but sometimes the software may not be enough because you might not be equipped to make the most of the software. Besides as your business grows, your finances will require more work, so why not do the smart thing and invest in the services of bookkeeping professionals.
- Not worth the Money– How much time do you spend daily on your bookkeeping? Imagine what all that you could do if you didn’t have to attend to bookkeeping and had the time to yourself. Investing your time in something you are good at will definitely yield more results than investing it in something you are not good at. Now ask yourself this question, in the light of this, is outsourced bookkeeping worth the money?