Outsource Your Bookkeeping: 3 signs that businesses should watch for
At some point in your company’s development, there will come a time when it’s time to stop messing around with the books yourself and outsource your bookkeeping.
Bookkeeping is rarely anyone’s favourite activity, but it’s a necessity for any successful business. However, focusing on bookkeeping can withdraw your attention from the core functions that support business growth. Additionally, as your company grows, record-keeping becomes a challenge because of an increase in responsibilities.
If this is true for your business, outsourcing bookkeeping services may be a good option. Here’s how to know if you’re ready.
3 signs that is time to outsource your bookkeeping
1. Dependence on a single individual
Relying on a single individual to maintain all your financial records is a risky affair because sometimes they may not give you full disclosure of your accounts. Additionally, it is even worse when the person you entrust your books of account is incompetent, yet you expect to maintain clean records to avoid compliance issues.
In that case, outsourcing bookkeeping services will not only give you access to expert services, but it also acts as a way of getting a second opinion regarding your financial records after scrutiny by several individuals.
2. Insufficient time to focus on core business functions
Some of the back office functions that may take much of your time, include managing receivables and payables, payroll, and inventory reporting. The fact is that though such back office responsibilities are essential, they are distracting you from pursuing business growth. Also, focusing on non-strategic and non-revenue generating functions will eventually derail your business operations in one way or another.
For that reason, opting to engage third-party experts to take care of your back office operations is a wise idea because it shifts your attention towards strengthening customer relationships, exploration of possible mergers or partnerships, among other strategies, which will promote business growth.
3. High cost of labour
The conventional way of maintaining company financial records for most entrepreneurs is hiring a full-time or part-time bookkeeper. The notion, in this case, is that most business owners believe that engaging an in-house bookkeeper is the best option. However, when you scrutinize the cost of both options, you will discover that it is expensive to maintain in-house accounts professionals.
If hiring a full-time bookkeeper isn’t in the cards for you quite yet, but you need to improve your current state of affairs, outsourcing bookkeeping services may be a good option for you. Contact us if you need some help finding a reliable, accurate bookkeeping resource.
Ready to Outsource Your Bookkeeping?
E&E Professional Accountants has years of experience in assisting businesses with their accounting needs. We are founded and managed by an experienced corporate auditor and a former CRA tax auditor. Feel free to contact us for assistance with all your accounting and bookkeeping needs.
- Family Successions: What Bill C208 Means for Small Businesses in Canada - February 16, 2022
- Best Practices & Tax Tips for the Self-Employed in Canada - February 16, 2022
- How to Reduce Tax Liability When Planning a Family Succession for Your Business - February 15, 2022