Bookkeeping is a crucial part of every business. It allows you to meet your Tax obligations and provides you with meaningful reports to address your business challenges, uncover opportunities and plan your next goals.
You’ve just opened a restaurant. You’ve got years of experience in the industry, you’re a pro at front of house and you’ve got a great chef serving up the goods. But then, your car breaks down. You’re familiar with engines and how they work, and you could probably fix it yourself but who knows how long it will take you and will the repairs last? You’ve got service in an hour, a stack of meetings and no time left in your day. What do you do?
Of course, everyone knows the answer is to take it to a mechanic – they have the time, experience, and knowhow to get the job done quickly, correctly and it’s more cost effective than you standing in your garage for hours in the middle of the night.
Now apply this theory to your business bookkeeping, payroll & accounting. Doesn’t it just make sense to outsource your business finances to a professional rather than sweating over your books in the wee hours of the morning?
Bookkeeping is a crucial part of every business. It allows you to meet your Tax obligations and provides you with meaningful reports to address your business challenges, uncover opportunities and plan your next goals. But how do you decide if in-house or outsourced bookkeeping is best for you and your business?
By outsourcing your bookkeeping, you can now spend your time working “ON” your business, not “IN” your business. Your time is valuable. Outsourcing tasks like bookkeeping, payroll and accounting help you to focus your time, energy, and resources on creating business strategies, allowing you to increase revenue and networking, as well as building relationships with your customers and employees.
Hiring an inhouse bookkeeper takes away some of the pressure, but you should consider the time and cost of recruitment, training and covering the sick and annual leave days. By outsourcing to a bookkeeping service, you should receive service 52 weeks a year, payroll will still be done even for that mysterious week between Christmas and New Year!
Expertise and Quality Control
Bookkeeping and accounting are dynamic industries. With Australian tax law and payroll regulations continuously changing it is critical to always be up-to-date. Outsourcing can offer a professional, higher level of expertise. Most bookkeeping and accounting firms continuously educate their employees to improve skills, qualifications, and to keep apprised of changes to tax and payroll law.
Outsourcing generally gives you access to a team of experts, this not only means you receive an uninterrupted service, but it should also mean that work and reports are reviewed by a second party for quality control. You have a whole team of shared knowledge and skill, not just one individual.
Efficiencies and Scale
Most bookkeeping service providers are highly qualified in automation tools and software to increase the efficiencies of the services they provide. Automation saves time, hence money, as well as reducing the risk of human error. If you or your in-house bookkeeper are using a spreadsheet – you are wasting time and money!
A good bookkeeping firm will also be able to suggest ways to increase efficiencies in your business. Most firms are dealing with many clients covering many industries. Through that learned experience, they have knowledge of industry benchmarks, software and programmes that can increase efficiencies in your business to ultimately increase your bottom line.
Scaling your bookkeeping service is easier with an outsourced firm. Hiring in-house, usually means a set number of hours per week. But as your business grows you may need more man hours or perhaps more services? Using a firm means hours can increase easily or if needed an additional member added to your bookkeeping team, with no need to go through the pains of recruitment and training.
We all know it comes down to cost. Most businesses consider outsourcing to be additional, and therefore an unnecessary cost for their business. But outsourcing will usually save you money in the long run.
Cost savings compared to an inhouse bookkeeper include – recruitment and training, covering leave, benefits, payroll tax, equipment, and materials.
Cost savings compared to you doing it yourself – your time is valuable, focus your time where it is needed most, growing your business. If you are not a professional bookkeeper, you run the risk of making mistakes, this may not only reduce cost savings, but it might actually cost you more.
So, what is the next step? If you’ve decided outsourcing is right for your business, talk to a professional, get a better understanding of what services you require and how the process will work.
At Pacific Accounting, we can tailor a package that is right for you. If you have the know-how and just need a hand for the tough stuff, we can help with our Lodgement and Support service. Need a full-time bookkeeper? We have the right candidate at a competitive price. You want all in – bookkeeping, payroll, compliance, advisory services, and taxation for a set weekly fee? We can do it. Contact our office on 1800-1800-98 for a free 1-hour consultation and quote.