27 Nov The 3 key benefits of outsourcing your bookkeeping
Bookkeeping can often be seen as a time-consuming chore; unquestionably vital for running a successful business but a chore nonetheless.
Even with easy to use online accounting solutions like Xero and Quickbooks, it appears to be a fast and simple job to get transactions entered into an accounting system, especially now with software able to automate bank feeds and scan receipts. However, this makes accounting easier but doesn’t deliver the service – which is the financial story telling of your business.
The story is made up of your financial transactions being recorded, stored and retrieved. Evidently not a complicated process but it does require time and most definitely accuracy.
As a business owner we have no doubt you are more than capable of doing your own bookkeeping. But is this really the most beneficial use of your time?
Here are just three reasons why you may consider it beneficial to outsource your bookkeeping:
1. Your time is worth more to your business than doing your own bookkeeping
2. Accurate accounts will save you money with your accountants
3. Up to date visibility is key for helping you achieve your business growth
Running your business will most likely mean many spinning plates, leaving you little time to allocate to bookkeeping within business hours, which is then pushed way down the priority list.
Sometimes we are very good devotees and vow to keep on top of our bookkeeping – ‘It’ll only take an hour if I do it every week’. Short of padlocking yourself to a chair every Friday night (or more likely Sunday night!), these well meant resolutions often nose dive; and with our work life balance already teetering on the edge due to the covid-19 enforced working from home (feeling for some as living at work), now is the time more than ever for us to focus on keeping our work time separate to our down time.
You may think you’re saving money by doing your own bookkeeping and in the short term yes you are.
However, with life being hectic enough without even adding to the mix the running of your own business, it’s easy to see that rushed bookkeeping can lead to inaccuracies and missed submission dates both costing you time and money.
Inaccuracies in your records will lead to increased accountancy fees and as you are the one accountable for your books, then you will be the primary contact for the accountant dealing with any queries.
Failing to meet submission dates will under most circumstances lead to HMRC investigations, penalties and even potential cash flow problems. Allow yourself to imagine what it might be like to let someone else worry about submitting your returns and reports on time?!
Accurate bookkeeping is key to giving you that much needed visibility, allowing you to use your valuable time to make important strategic decisions. As a business owner you should be focusing on developing your business, attracting new clients and providing a great service, will you be able to do this if you are using your time to do your own bookkeeping?
Thanks to the widespread availability of cloud technology, outsourcing your bookkeeping is easier than ever and the benefits are easy to see. It’s far less risky, far more efficient, and is a cost effective solution. So, leave the bookkeeping to those dedicated to it, and focus on what you’re good at!
At Link Accounting, we make it our mission to help you achieve your business growth by:
- Taking the hassle out of dealing with Companies House and HMRC – as your agent we can manage it all for you from PAYE to Corporate Tax, VAT and everything in between.
- Setting you up with time-saving apps and cloud accounting software – that make bookkeeping and accounting simple and straightforward.
- Giving you instant access to up to date management information – about your accounts with complete visibility of cash flow and transactions.