Time-Saving Benefits of Outsourced Bookkeeping to Maximize Productivity
Business bookkeeping is a task that few small business owners look forward to.
About 40% of small business owners cite bookkeeping and taxes as the worst part of owning a business.
However, it is a crucial task for keeping your taxes and payroll organized.
That does not mean that you have to get stuck doing it yourself though.
One option that you have to get out of this task is to use outsourced bookkeeping.
Why should you consider outsourcing bookkeeping?
What are the biggest benefits that you get from doing this?
Here are some of the biggest pros.
Less Operating Costs
One of the biggest pros to outsourcing your bookkeeping is that you can save money on your operating costs.
This mainly comes into play if you are not doing the bookkeeping yourself.
Let’s say that you hire one bookkeeper to be on your full-time staff.
Even with just one employee, you have to commit to paying them at least $40,000 per year to manage your payroll and taxes.
Not all small businesses need that kind of regular input.
An option you have to cut costs here is to give your business to an outsourced bookkeeper.
Here, you do not have to pay this group a full-time salary to manage your books.
Instead, you only have to take your books to them as needed.
Doing it this way will likely save you tens of thousands of dollars considering that more than half of the small businesses spend less than $5,000 on this.
If your books only require low maintenance, this can be the perfect option for you.
Save Time
Another benefit to outsourcing your bookkeeping is that it frees up time as a business owner.
About 40% of business owners spend more than 80 hours per year on tax preparation alone.
What does this mean? It means that a small business owner may end up having to spend a lot of time in their office instead of keeping an eye on other parts of their business.
Outsourcing your bookkeeping allows you to take that time and stress off of your hands.
Instead, you can use your newly found free time to focus your energy somewhere else.
One thing you can do with that time is improve other parts of the business.
Let’s say that you are running a restaurant.
In the past, you may have spent so much time on bookkeeping that you rarely kept an eye on daily operations.
In this scenario, you may have started to take a closer look at those daily operations.
You could discover that certain jobs are not being done right.
The kitchen may not have had a deep cleaning in a while, the kitchen may be so disorganized that it delays service, your beers are being served after the expiration date, etc.
The point here is that it gives you the chance to turn other aspects of your business around that could use your attention.
Fewer Errors
If you are not a professional bookkeeper, the chances are slim that you were filling out your books correctly on your own.
This can result in several errors.
There could be things like inaccurate net profit, paying too much in taxes, forgetting to note some accounts payable, not keeping up with any business debt, and more.
Depending on what kind of errors you make in this process, you could face legal trouble.
An example could be tax evasion if you manage your books poorly enough.
What can you do about this?
Leave your books to the professionals.
They have years of experience on their side and they know what they are doing.
That means that they will catch legal compliance issues before they happen.
They will also help you organize the profits you do have along with the bills that you still have to pay.
Bigger Tax Refunds
Finally, depending on how you have been managing your books in the past, working with a professional accounting firm can help you get a better tax return.
This mainly occurs when businesses do not know all of the tax breaks that they qualify for.
Let’s say that you are someone that is self-employed and works from home.
You may have never considered your home to be a business expense.
However, one thing that you can do here is put whatever percentage of your home that you use as office space as an expense.
In this scenario, you may have an apartment that you pay $2,000 a month in rent for.
You use about 25% of this space as office space.
Here, you can put $500 a month towards your business expenses.
With that being equal to $6,000 per year, that money can get taken off of your net income.
As a result, you have about $6,000 in income that will not get taxed.
It is the small details like the above that a professional bookkeeper will help discover for you.
If there are more situations like that in your business, it can save you a lot of money in taxes.
Hire Outsourced Bookkeeping Services
These are some of the biggest benefits that you get when you hire outsourced bookkeeping services.
It can save you from having to hire a full-time bookkeeper.
This also saves you the time of having to do the books yourself, thus giving you a chance to increase productivity in your business.
On top of this, you can potentially discover tax breaks you did not know about.
Are you ready to start outsourcing bookkeeping? Message us here to get started.
Do you dread taking care of the bookkeeping? Are you worried that you are doing something wrong that will come back to haunt you at tax time? We can help! Master Accounting provides outsourced bookkeeping services to Arizona and Southern California businesses just like yours. Contact the experts at Master Accounting for a free initial consultation! Call (480) 456-4999 or submit your request online here.
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