Small and medium business owners often choose to keep all accounting and bookkeeping activities in-house to keep costs low. With the multitude of other business functions to take care, these activities are most often carried out hastily or left to be done “another day”. While it can be beneficial to carry on these activities in-house when the business is in the nascent stage, in the long-run hiring a bookkeeper will prove to be beneficial in terms of efficiency and throughput.
Here are three reasons why you need a bookkeeper to take care of your accounting and bookkeeping tasks.
1. Save Time
Most SMB owners are experts in their own right, but often lack expertise in accounting and bookkeeping. Building their primary business function will always remain a core activity that needs continuous focus. This focus can be hard to maintain with accounting and bookkeeping tasks that are time-intensive. Accounting and bookkeeping must be handled carefully, with proper maintenance of accounts or this can create trouble down the line. Working with an external, qualified partner for your accounting can save a lot of time. This time can be spent focusing on your core competencies while an expert takes care of these tasks.
2. Improve Efficiency
Accounting and bookkeeping must be compliant with new tax laws and other financial regulations. In-house bookkeeping requires SMB owners to be up-to-date with finance and tax laws, lest they miss out on any important amendment or update. Needless to say, this is time-consuming and eats into productivity and efficiency. This can affect the timeliness of other business functions, as well. At worst, a mistake or an oversight in accounting can lead to interrupted cashflow which can prove critical for your business. This may affect the time allocated for other functional activities, thereby leading to delays in product or service delivery. Investing in an experienced bookkeeping partner ensures that accounting is handled efficiently, while maximizing your business efficiency.
3. Save Money & Utilize Funds Better
With an external partner taking care of accounting and maintaining the accounts books, SMB owners can now see how their investments and earnings are utilized. With the help of monthly, quarterly, and yearly financial reports, they can also make informed business decisions on cost-cutting and re-investments. Ultimately, this saves money and helps make better use of revenue and investments – a win-win situation.
Periodic reports show the financial health and trends of the business, with specific insights into how each business function is contributing to revenue flow. With top-level data on current business spending and earnings, an external bookkeeper can also provide a fresh, new perspective on improving business operations to be more cost-effective and profitable.
As we can see, an external bookkeeper can do much more than the mere basics of accounting such as data entry or generating reports. Taking the decision to choose a reliable accounting and bookkeeping partner can be an important one for business growth. Important factors to check while looking for a bookkeeping partner include years of expertise, their clientele, the software used, turnaround time, and finally, credibility.
If you are a business in the SMB segment having any kind of accounting and bookkeeping requirement, SmartFin can help you out. SmartFin has over ten years of expertise in providing end-to-end accounting and bookkeeping services to clients across the globe. Your accounting will be in safe hands, while you focus on your core business functions. Get in touch with us if you would like to explore our services.