Is It Time To Outsource Your Accounts?
This blog from JGBC looks at when it is the right time to outsource your bookkeeping and accounts and what to consider when looking for an accountant or bookkeeper.
Every business needs its books keeping, but is the owner the best person for the job? There comes a time when every business should consider outsourcing bookkeeping to a licensed professional Bookkeeper. Normally there comes a point when many small business owners realise that they no longer have the time to do their accounts or hate doing it and would rather spend their time doing other things. Paying a bookkeeper to keep your accounts up to date often kills these two birds with one stone.
All business owners wear a lot of different hats – sales, marketing, customer service, HR, bookkeeping and many more. All businesses need to pay close attention to the top and bottom line. The bottom line can often suffer because your focus is constantly interrupted with the daily tasks associated with running a business. Without someone skilled and focused monitoring the financial performance of your business, it is likely to suffer. This is why it makes sense to outsource your bookkeeping to a licensed professional (such as JGBC) who will monitor and report on your businesses performance. There are three key areas that consider when deciding whether to
outsource your bookkeeping:
1) Your Skill Set
All businesses are created because the founders have a goal, hope, idea or vision. Most business owners don’t usually have all the skills required to run a business successfully, and that’s why it’s important to consider outsourcing. For example, I know my writing, spelling and grammar is not my strong point, so I outsource the editing and proofreading of my website, blogs, social media posts and documents to Debbie at Social Butterfly Comms to make sure they are accurate and read well. I’m sure there are many things you do really well, but is bookkeeping one of them? It’s difficult to manage every aspect of your business alone. By trying to do it all and be everything to everybody, you may risk burnout which will adversely affect your health and the business.
2) Your Priorities
As a business owner, you’re going to be busy. I certainly am, so I choose where my time is best spent. What tasks will my clients and business benefit from the most? All questions I’m sure you ask yourself every day. Is wondering how to manage the number of tax-deductible expenses you’ve accumulated, or recording your income and sales breakdowns really the best thing for you to be spending your time on?
Trust me, from experience a lot of people I meet say no, my time is better spent serving my customers or networking, and rightly so. These activities generate your income! However, neglecting your accounts during the tax year leads to a stressful and traumatic couple of days in January trying to get all of your bookkeeping done and your tax return submitted on time.
3) Accounting Errors
Managing the financial side of your business has become easier over the years, thanks to new software being launched constantly and “The Cloud” giving us access to data anywhere, at any time. Instead of wading through piles of paper, software such as QuickBooks Online & Xero requires nothing more than a computer and internet connection to easily manage your business accounting functions. But it’s not idiot proof – (you still have to enter the data manually, know where to input things and what is tax deductible and what isn’t). Is your speciality data entry and tax? If you get it wrong you’ll need to correct it using transaction journals – how much do you know about double-entry bookkeeping? Errors can lead to lost revenue and higher tax bills or even big fines! A licensed professional bookkeeper can get it right the first time saving you stress, time and financial penalties.
We all have our strengths and weaknesses. The important thing is to work on the weaknesses, whether that’s through personal development and learning or outsourcing the problem entirely. JGBC can help with either route you choose. I offer two services:
1) Traditional Bookkeeping Package
I offer the traditional bookkeeping package where I do all the work. You just send me the paperwork and sit back whilst I process it. Prices are fixed monthly and depend on individual circumstances.
2) Monthly Support Package
I also offer a support package at a monthly cost of £50 for those who want to learn the bookkeeping basics. I will train you in the day to day aspects of bookkeeping then supervise your books each month. I also provide you with a mentoring session each month to help you correct any errors. You also get full access to QuickBooks Online free of charge, this alone would normally cost £30.00 alone!
So whatever path you choose, JGBC is here to support you! Contact us via our Contact page