Why Small Businesses Need 3rd Party Bookkeeping

AccountingFor small or fledgling enterprises, one of the most common challenges that they face is the need to cut costs. It is for this reason that they are hesitant to hire a bookkeeping service. The small business owners see employing the services of a bookkeeper as an unnecessary cost or they are simply uncomfortable letting a third party in on privileged information.

While their concerns may be valid, there are many benefits to taking bookkeeping responsibilities off your hands and handing them over to an outside party. The benefits of using someone like this business, that offers bookkeeping services sunshine coast, definitely outweigh the drawbacks. Here are some of them:

(1)Opportunity cost

The truth is that the time that you spend in trying to keep your own books is time that would be better spent on other important areas of your business. If you are not a trained accountant or you are not familiar with the software that assists in bookkeeping, entering transactions into the ledgers takes longer than necessary. The money you can earn spending this time on your business is certainly than the amount you stand to save by doing the books yourself.

(2)Accuracy

When you engage a bookkeeping service, you are leaving the task to an individual with sufficient accounting experience or even a certified accountant. Such an individual knows how each transaction is entered and classified. In addition to keeping your books accurate, this also helps in pre-tax planning. When you keep your books, it is natural for some amount of procrastination to creep in and you end up closing out the month days or weeks later.

(3)Access to the latest bookkeeping techniques

When you outsource bookkeeping services, the accounting company takes the responsibility of updating their staff on the latest tools and techniques as well as acquiring the most advanced accounting software. As the business owner you don’t have to spend any money on software upgrades and seminars.

(4)Conflict of interest

If the business is a partnership, the relationship can easily turn sour if there is any suspicion of misconduct with bookkeeping. This can happen even to partners who think they have a great business relationship. Hiring a bookkeeper is the best way to eliminate this potential conflict of interest. That way you and your partner will be able to resolve any potential issues easily when both of you are not directly at fault.

(5)You are able to focus on the work at hand

As an owner of a small business, it is in the best interest of you and your business that you put more emphasis on front end activities like sales generation and building relationships with clients and vendors. Spending time keeping financial records only takes your focus from the crucial areas of your business.