The Benefits of Outsourcing Bookkeeping for Fast Growing Companies
Bookkeeping is defined as the recording of all the day-to-day financial transactions of a business. This includes purchases, sales, receipts and payments. Bookkeeping can be as simple as inputting all activities into a basic ledger, creating Excel sheets to capture information, or using defined software programs to capture that same information. This information is then used by accountants to file pertinent forms for government use, as well as for payroll and corporate taxes; however, it can also be used to find out the financial health of your business.
Bookkeeping is obviously an essential service for any business and the successful application of this process is imperative. It is important for business owners to know their own limitations and accept that there are many benefits of outsourcing bookkeeping—especially for fast-growing companies—but let’s look more closely at some of these benefits.
Outsourcing bookkeeping creates the ability to focus on business growth
By removing the ongoing day-to-day work that is associated with maintaining the bookkeeping, a business owner can focus on what he/she wishes to achieve most—the growth of his/her company. The reality is that bookkeeping is a necessary and time consuming element of every business. As a business grows, more and more time is spent on managing money, paperwork, and marketing, and less time is spent focusing on the growth of your business. If you are content with the size and direction of your business, then you can continue to balance the administrative and bookkeeping needs yourself; however, if you want to have time to envision growth and create viable success, you need to stop micromanaging every component and focus your energy where you need it. This is one of the greatest benefits of outsourcing bookkeeping for fast growing companies.
Outsourcing bookkeeping provides a money-saving approach to managing the books
Another benefit is the cost-effectiveness of outsourcing bookkeeping. If you hire a staff member to undertake this project, the costs associated with maintaining him/her are much higher than contracting or outsourcing to a multidisciplinary company. In-house bookkeepers can cost upwards of $15/hour, and are paid hourly wages with additional fees such as payroll taxes, workman’s compensation, health insurance, holiday pay, office space, utilities, etc. Then add the amount of time it takes to train and supervise your employee. Outsourcing bookkeeping and accounting services can save you upwards of 50% of the cost of hiring a full-time employee. Many outsourcing companies do not charge by the hour but have a flat rate charge for all services offered (the focus is not on the amount of time it takes to complete the work, but on the value added to having the work completed). You are also not responsible for managing the time use of your employee, nor will you have to address his/her ongoing training.
Here at the Cushnoc Group, we specialize in working with dynamic companies who require our services in the areas of finance, accounting support, and bookkeeping. We assist with tax filing support and ongoing accounting maintenance, as well as finance support (such as budgeting, business modeling, forecasting, internal audits and controls, cash management policies and audit relationships). We can provide a multidisciplinary team that can work closely with you and your staff to create and implement a plan for your business so you can see the benefits of outsourcing bookkeeping for fast growing companies.