The Benefits of Employing Bookkeeping Services

Discover the numerous benefits of bookkeeping services. Image:
Discover the numerous benefits of bookkeeping services. Image: Flickr

Numerous business owners are reluctant to employ bookkeeping services to track their costs. While some may feel it’s an unnecessary cost, others may be uncomfortable granting a third party access to such privileged information.

Although these concerns are valid, the benefits far outweigh the drawbacks. If you’re unsure about the related benefits, check out this list.

1. Cost-efficiency

Employing a bookkeeping service can be more cost efficient than hiring part time or casual staff to perform this task.

You’ll discover there’s no need to buy and sustain computer systems, purchase costly upgrades and accounting software or invest in expensive development and training of staff.

Furthermore, you don’t need to allocate office space and there’s no leave entitlements, superannuation, or other expenses that a part or full time employee incurs.

2. Accuracy

Employing a bookkeeping service implies hiring someone with accounting experience or even a qualified accountant. These professionals know to classify and enter your transactions, which helps maintain accuracy and aids pre-tax planning.

When you perform this task yourself, you’re likely to procrastinate possibly due to a busy schedule. On the other hand, a professional will check more frequently and typically perform the task better.

3. Time efficiency

A bookkeeping service has the proficiency and know-how to manage your accounts and allow you to concentrate on the daily operation of your business. Bookkeepers must be flexible and plan meetings around your busy schedule.

They should also have the ability to generate figures and reports on short notice to accommodate last minute meetings.

Moreover, a bookkeeping service can update your accountant on when to expect your files for accounts preparation and yearly tax return. This helps you run and develop your business without focusing on administrative tasks.

4. Payroll

You may be the sole employee now or maybe you are in a partnership. Sometime in the future, you may develop your business to include more workers, and a bookkeeping service is an excellent option for managing your payroll needs.

Some of the services you can expect include writing and creating checks for you to sign. Some services may mail them to workers or bring them to your office.

The same applies to contractors and freelancers. Besides payments, some services will prepare Form 1099-MISC or a W-2 for every contractor or employee for tax purposes.

5. Higher Profits

This service puts you in charge of cash flow, decreases tax liabilities, and capitalizes on profits using management controls. The services can also offer a consistent reporting service and update processes.

This includes comprehensive knowledge of balance sheet monetary position as well as loss and profit performance to date, which can undergo further analysis if necessary.

You can use tailored reports to prepare budgets, make business decisions, and evaluate your past performance to predict the future business plans and maximize profits.

6. Reports

Numerous small business owners don’t know their business’s true economic state and the failure to analyze and stay on top of your business is likely to produce a failed business.

Accessing important financial reports is important, and bookkeeping services produce the reports you require as frequently as you want them. While most businesses need fiscal reports on a bi-weekly basis, some need them weekly while others may need them monthly.

Regardless of the frequency you select, a bookkeeper will generate the reports you need. This way, you’ll know where your business stands while preventing problems from taking place.

7. Peace of Mind

Employing a bookkeeper gives you a piece of mind because a reliable reporting system is in place, processes are updated, you’re managing cash flow, ensuring timely invoice payment, and following up on unpaid invoices.

Your bookkeeper must update you on any regulation changes and prepare for important dates such as your yearly tax return.

Final Thoughts

You must view a bookkeeping service as a business investment rather than an expense. Engaging these services will offer various benefits such as decreasing your tax liabilities, so hire one today.

Dailey Bookkeeping Services is a Xero Certified SILVER Partner and a QuickBooks Online Certified Advisor, so if we can help you with your bookkeeping needs, just give us a call, we would love to help you!  The owner, Jacqueline Dailey is a Certified Public Bookkeeper, an Advanced Certified QuickBooks and QuickBooks Online ProAdvisor, a Sleeter Group Certified QuickBooks Consultant and a Xero Certified Silver Partner. We work remotely so we can work with any company located in the U.S. If we can help you with this process or provide you with custom reporting, please give us a call. If we cannot help you, we will refer you to someone who can!  Feel free to visit our website at http://www.daileybookkeeping.com.

20 thoughts on “The Benefits of Employing Bookkeeping Services

  1. I had heard in the past that having a good bookkeeping service could be invaluable for a business. You wrote that a good bookkeeping service can help you know what you need to balance, which could lead to higher profits. Being able to know where all your money is going, and cut off unnecessary expenditures could really safe a business a fortune.

  2. I appreciate this information about the benefits of employing bookkeeping services. It is good to know that a bookkeeping service can be more cost efficient than hiring part time or casual staff. It would be good to be able to spend saved money on other things. Something to consider would be to find a local service to facilitate the process.

  3. Hi Jade,

    I am glad that you liked the article! Staying on top of the financial status of your business will give you great insight to where things are heading. In this way you can notice things like maybe you are going to run out of money by the end of the month if you take into consideration your upcoming payables and receivables. Knowing this ahead of time, give you time to make decisions like should you hole off on paying this bill, or should you maybe get a loan. There are so many advantages to keeping up to date on your books!

    Another comment that you made was regarding finding a local service to facilitate the process….Many bookkeeping services like Dailey Bookkeeping Services, offer cloud based services, meaning that we have clients all over the world, so the bookkeeping company does not necessarily have to be local. For example, one of my local clients just referred me to their business partner in another state. We are going to take over doing their bookkeeping from their local bookkeeper who only works on their books once a month, so currently they are not getting their financials from one month until approximately the 3rd week into the following month. That can be way too late to make business decisions. Because of their business processes, they need to be on QuickBooks Desktop so they are currently sending a backup of their file to their bookkeeper to work on and while the bookkeeper has their file, they cannot do anything in their QuickBooks file. We are going to be hosting their QuickBooks software in the cloud, eliminating the need to pass the file back and forth and we can keep up on their books weekly. So the only thing that we should be waiting on is the bank statement at the beginning of the next month to reconcile. In this way they can have updated reports weekly and be able to run their business more efficiently. So you see, you do not have to have a local bookkeeping service as long as the bookkeeping service has the knowledge of what the needs of your particular business is. I hope this is helpful!

  4. Very nice and informative article. All though I have some confusion about hiring a bookkeeper for small business. Do you think an online bookkeeping service can do the job? Will it be right to hire an online bookkeeping service for small business?

    1. Hi Steav,

      Yes, hiring an online bookkeeping service can definitely do the job. When I speak of “hiring” a bookkeeping service, I am referring to hiring an outside company to do your bookkeeping, not that they are on the companies payroll. Sorry if there was any confusion!

  5. This post is very specific about what you actually gain by outsourcing your bookkeeping best the best of all is the peace of mind #7. As a small business owner I felt like I was really out of my mind dealing with all the finances including bookkeeping, payroll and human resources.

  6. I really like what you said about how a bookkeeping service has the proficiency and know-how to manage your accounts and allow you to concentrate on the daily operation of your business. My friend is starting her own small business selling her art products and is considering a bookkeeping service to help her since the books are not her strong point. Thank you for the information about how this will improve her efficiency and helps you run and develop your business without focusing on administrative tasks.

    1. Hello Khorea, Your sister should at least contact someone and discuss her business and what she hopes to accomplish in the future and they should help her to pick a financial software that will grow with her company. They will also be able to set it up for her and then show her how to do the daily transactions. It is defiantly always good to have a bookkeeping services keep them up to date, but not all new companies can afford this. She should in the very least have an initial meeting with a bookkeeping service to get her going on the right track and get some training and then go over the books at the end of the year.

  7. I really liked what you said about how business accounting services put you in charge of cash flow, decrease tax liabilities, and capitalizes on your profits. My cousin is starting his own small business and is looking to hire an accounting service to make sure he keeps all his finances straight. Thank you for the information about how he’d also get a consistent reporting service and update processes.

    1. Hi Sherry, I am glad that you found this helpful! It is very important to keep your finances up to date to know what is going on in your business. Good Luck with the new business and let me know if I can help. 🙂

  8. I like how you mentioned that hiring a bookkeeper can help a business get higher profits, as tax liabilities are decreased. One of my friends is thinking of starting a business, so he may benefit from hiring a bookkeeper. What tips do you have for choosing a great bookkeeper?

  9. At work, we have been thinking about getting bookkeeping services, but wanted to do a cost-benefit analysis first. I think that it is interesting that you say if we outsource our bookkeeping that we will have higher profits. I think that that decreasing taxes would be most helpful on that aspect.

  10. It would be nice for a business to have some bookkeepers so that they could focus on other parts of the company. That is something that I would want if I were a business owner. That way I wouldn’t have to worry as much on keeping up with the taxes as they would do it for me.

  11. My restaurant needs an accurate monthly account of expenses. If a bookkeeping service will ensure that we can concentrate on other tasks, I’ll consider hiring an accountant for it. I need to make sure that the employee payroll is smooth so they can really help me a lot with this.

  12. You made me realize that it’s a good idea to have a bookkeeping service for my business because it’s cost-efficient. I think their calculations are more accurate which could mean a lot for our income. Since it’s a time-efficient decision as well, I might consider hiring one before we start growing our business formally next month.

  13. As you have mentioned above, employing a bookkeeper ease the headache of managing financial records. You will receive accurate financial reports that in return help you to understand the profits and loss of your business.

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