4 Benefits Of Outsourcing Your Bookkeeping

In the past, business owners never really thought about outsourcing their bookkeeping operations. With the rise of technology and the internet, things have changed and more business owners are outsourcing. You should consider it too, but before you do let’s discuss the benefits. Read on to find out the main benefits of outsourcing your bookkeeping.


1. Free Up More Time- As a business owner, you want to dedicate as much time as possible trying to make your company profitable. Nobody enjoys the daunting task of bookkeeping because it takes up so much time, which is why you should outsource your bookkeeping tasks. By outsourcing your bookkeeping, you will have more time to focus on bettering your business and you won’t have to worry about becoming distracted with bookkeeping because the company you outsource to will take care of everything. Bookkeeping won’t be so in your face, which is why it won’t be a distraction.

2. Expertise Help- Outsourcing your bookkeeping means having expertise on your side because the team handling your bookkeeping will be knowledgeable about bookkeeping. They will be up to date with best practices and they will have the skills needed to perform specific bookkeeping tasks. Outsourcing makes things a whole lot easier on you, your staff and the business as a whole because you don’t have to be up to date with practices or anything of that nature. Instead of stressing yourself out over bookkeeping, just outsource it to a reputable company.

3. Get It Done Properly- You’re probably so focused on running your business and creating marketing plans and taking care of dozens of things at any given time. This is why it’s so easy to make a few mistakes when it comes to bookkeeping, and the last thing you want to do is to make any mistakes with your bookkeeping operations. Outsourcing your bookkeeping to a team takes that burden off your shoulders. As previously mentioned, a team of professionals have knowledge of the industry, which also means they will do bookkeeping the right way, the first time around. If you want bookkeeping done properly, then let someone else do it.

4. The Ability To Scale- You might be surprised at how much easier it is to scale up or to cutback when you outsource your bookkeeping, and you can scale up or cutback very quickly. If you want to grow your business and you want to do it quickly, then outsource your bookkeeping, but the goes if you want to reduce your spending. There are different options when it comes to outsourcing your bookkeeping, so you can rest assure there’s an option that will align with your goals, regardless if it’s cutting back spending or wanting to expand your business.

Those are the key benefits of outsourcing your bookkeeping. There are many other benefits you will experience when you outsource. Just make sure you research the company you’re considering outsourcing to because you want to make sure your bookkeeping tasks is in good hands.

The Differences Between Bookkeepers and Accountants

Most people have difficulty explaining the difference between bookkeepers and accountants, and the distinction between the two is becoming more obscure as advances are made in accounting software. However, while both share some common goals, they provide different levels and types of support for your business.

 

Both accounting and bookkeeping are essential business functions that is required for every business. In general, accounting is responsible for classifying, interpreting, analyzing, summarizing, and reporting financial data, while bookkeeping is responsible for entry of all financial transaction in the financial record. The most significant difference between these two definitions is that bookkeeping does not involve interpreting or analyzing financial data. Here is an examination of both with a bit more detail.

Similarities Between Accountants And Bookkeepers

If you were to observe accountants and bookkeepers at work, there would be very little that would stand out to you to indicate that there is any difference at all between the professions. To the untrained eye, all that would be noticed is that both professions work with financial data, and it is true that there are a great deal of similarities between the two.

To enter either profession, an individual must be familiar with and able to use accounting knowledge. In smaller companies, bookkeepers frequently handle more of the accounting process than just data recording. In addition to recording transactions, they’ll use financial transaction information to classify and generate reports. Often they don’t actually have the educational background to do these things, but this is an area that advances in accounting software is blurring the distinction between the two. Accounting software is capable of automating such reports. In many businesses, accountants will also log financial transactions into the program for a company, something that is typically considered part of the bookkeeper’s half of the accounting process.

Differences Between Accountants And Bookkeepers

Aside from the differences already mentioned regarding the roles that accountants and bookkeepers play in the accounting process, the amount of education to qualify for the positions is probably the largest difference. To qualify as a bookkeeper, it’s generally accepted that an individual only has to have taken a few accounting courses, and can demonstrate a basic understand of accounting principles. To qualify as an accountant, an individual will have to have earned at least a bachelor’s degree from an accredited college or university, to qualify as a certified public accountant, more advanced study is required.

Because of the difference in their level of education, accountants are qualified to handle every step of the accounting process, while bookkeeper’s are only qualified for recording financial transactions. Accountants are often used as advisers to bookkeepers to guarantee their accuracy, which they accomplish by completing reviews of the bookkeepers work. This is not to say that bookkeepers don’t have an important role to play in the accounting process, as they are responsible for laying the groundwork that accountants need to analyze financial data.

The Bottom Line

The two professions work hand-in-hand, to contribute to the long-term success of your business. The bookkeeper organizes the financial records and maintains properly balanced finances, and the accountant builds upon the bookkeepers work by using the data to develop smart financial strategies and to produce accurate tax filings.