Outsourcing bookkeeping saves time, money and headaches
Thursday, Sep 5, 2013
But she didn’t. Instead, quite the opposite happened as she was freed up to be more productive in her role, and she now helps her employer with marketing and taking on special projects making her much more valuable in the employer’s eyes.
She still works with the bookkeeping, even making entries on occasion, but instead of spending hours each week working on the books, she is now only spending minutes each day reviewing and approving transactions.
She now finds her job more rewarding as she is more involved in helping the business grow, and the business owner has a happier and therefore a more productive employee. That’s definitely a win–win.
This is a typical scenario of small businesses that implements outsourced bookkeeping. Happier employers are only one of the benefits of outsourced bookkeeping. Outsourcing the bookkeeping function has been a growing trend among companies for years as small and medium sized businesses look for ways to become more efficient, lower their risk and reduce expenses.
Business owners have been taking advantage of outsourcing in other areas such as third-party payroll services and even employee leasing. These services have been around for years and have become the norm in many businesses.
Many small businesses believe they can save money by keeping the bookkeeping functions in house. But what they learned is that they added work on themselves that wasn’t productive and opened themselves up to potential tax liabilities because they weren’t aware of certain filing requirements.
Most of the time though, bookkeeping hassles take owners and their staff away from the most important function – business development.
With today’s technology, outsourcing the function is quite easy. All of the accounting and bookkeeping records reside on a secure cloud server that can be accessed by the company and as well as the outsourcing firm.
All daily, monthly and annual bookkeeping functions can be handled by the outsourcing firm without the company giving up any control over the information. Management approves all disbursements and staff has full access to data and reporting 24/7.
Another potential benefit a company may encounter when outsourcing their bookkeeping to a high-tech outsourced bookkeeping service provider is that they can actually upgrade the accounting software it uses without the steep investment. Quality accounting software can cost tens of thousands of dollars and many businesses can’t afford that luxury. We use MAS100 here at Integrated Business Solutions, for example, which has been a leader in the accounting software industry for almost 30 years because of its power, user friendliness, flexibility and reporting. MAS100 is a great fit for most business’s needs and is definitely an upgrade to lower-end accounting software packages.
Outsourcing accounting and bookkeeping is a perfect fit for many small and medium-size businesses. Many business owners spend long hours at the office, then go home to spend more hours with the books when they could be spending that time with family or focusing on how to build future business.
Employees get nervous when companies outsource and owners fear a loss of control over the information. But, in fact, it creates more flexibility for staff to help do what’s necessary for the business to grow. And the owners can still see what’s happening with accounts receivables and payables, payroll and the rest of the reporting and have peace of mind that they essentially have a company controller ensuring everything is solid.
Tom Rossi owns Integrated Business Solutions in Crossville. He has decades of experience with accounting, bookkeeping and income tax with his own firm and also is a company controller and a provider of outsourced services. He has clients in Tennessee, Michigan and Florida.