Numerous business owners understand the strain that the payroll and bookkeeping processes can place on a business, so they outsource because these tasks take a considerable time and maintaining precision can be overwhelming and could become a permanent job.
Furthermore, numerous business owners prefer to outsource because of tremendous business growth, which implies that they don’t have the time or patience to keep up with these crucial tasks.
While these tasks tend to be simple during the initial stages of a business, they could become complex over time as your business expands. Here are signs that you need to outsource payroll and bookkeeping.
1. Business Growth
The more growth your business experiences, the more complex payroll will become and the higher the likelihood of losing money in the event that you make a mistake.
Outsourcing to a specialist is the ideal option when you begin to lose track of the exact number of employees you have. This will benefit your business considerably because specialists typically have experience in processing payroll for medium or small businesses in addition to having knowledge of the latest employment and payroll laws to ensure all withholdings and taxes take place correctly.
2. Keeping Up is Becoming Risky and Time-consuming
You probably started a business out of passion. However, most business owners aren’t keen on performing tasks related to payroll and bookkeeping. As a business owner, you probably didn’t expect that you would need to become proficient in filing and calculating payroll taxes.
With every employee you hire, work will typically pile up and you’ll need to calculate all withholdings, wages, and paycheck deductions perfectly. The challenge is that this is time-consuming and you shouldn’t be spending more time on payroll calculations than maintaining satisfied customers and business growth.
3. Absent Internal Control
Some businesses seek the services of an outsourced payroll provider for increased control and prevention of possible fraud within the company. Bear in mind that an outsourced firm has fair and unbiased views that can offer an extra layer of protection and security when handling employees’ information and details. It’s also easier to identify red flags and irregularities from the given data and figures.
4. You’re not Focusing on Your Business
Once you find that you’re spending a huge portion of your week or day maintaining the business’s financial records and following up on other monetary transactions, then it’s time to outsource this task. Although functions like bookkeeping are essential, they take a considerable time from your core business.
Remember, such functions aren’t strategic or revenue generating, which implies that you’re hindering the business’s growth potential. Outsourcing will transfer the critical task to a team of professionals, enabling you to concentrate on value-added activities, for instance, enhancing client relationships, business expansion, and investigating new partnerships.
5. Data Security is Significant to You
As a small business proprietor, you might be concerned about the safety of accessing and storing confidential business data in the cloud. Fortunately, the cloud is a safer storage method in comparison with a local hard drive.
For instance, if you lose your laptop or desktop through theft, the loss of traditional data and conventional accounting software could be disastrous. Furthermore, you don’t need to worry about software bugs, data backups, or user errors.
In the cloud, this occurs effortlessly and you’ll discover that cloud bookkeeping firms have numerous data protection layers, security cameras for monitoring file access, and the ability to perform continuous testing for connectivity and disaster recovery.
6. Your Business Transactions Aren’t Updated
As your business expands, so does the record keeping and paperwork. Most business owners frequently leave the vital task of updating the records until it’s tax time. If you don’t update your records, you might not identify financial issues early, and this could lead you into trouble.
Payroll and bookkeeping are vital tasks for any business, and if you don’t handle them accordingly, your business is likely to suffer considerably. Consequently, it’s important you identify when it’s time to outsource them. If you’re not certain about the appropriate time to do so, watch out for these signs.
Dailey Bookkeeping Services is a Xero Certified BRONZE Partner and a QuickBooks Online Certified Advisor, so if we can help you with your payroll and 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 Bronze 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.