Here’s a questions to start our discussion: If a business simply hands over all its receipts at the end of the year to a certified public accountant, does that take care of all the necessary accounting for that company?
Answer Wrong.
Businesses managed correctly are processing their transactions daily to stay on track with their financial activity and record-keeping. It’s critical because any falling behind increases the chances of making mistakes. Transaction volume has long been known to be a factor that increases the risk of human errors in accounting.
When transaction volume spikes, expertise and skill begin to matter that much more. And that says little of every other responsibility accounting contains for a business. But what do you do differently? Well, the short answer is to get someone to start taking care of you more frequently, and can perhaps take other tasks out from your list of to-dos.
Outsourcing Serves Multiple Functions
First and foremost, bookkeeping support helps put company people back on what they are best at. Too often, especially with small businesses, staff who were brought in for one function get sidetracked and lose valuable hours in the day managing bookkeeping instead. This is the common curse of team leaders as well as analysts.
However, if the transaction-recording workload can instead be shifted to those who are good at it, and existing staff in-house can then be put back to their primary role, a business can actually perform better.
Bookkeeping also provides trained eyes on transactions who can process a large amount of data correctly and consistently. This is important. Accounting generally tends to be monotonous but also has a high demand for attention and staying error-free. As a result, not everyone is tuned for working in the discipline.
A good bookkeeper provides the critical combination and can move through large amounts of transactions efficiently. So, outsourcing that task to the right personnel actually matches the work better with the labor resources trained to deal with it.
The pressure and deadlines of tax reporting can also produce lots of errors. Instead of burning out managers and financial staff on processing, businesses can save them for final review and confirmation of the reports submitted.
In the meantime, outsourced bookkeeping support can move through the heavy processing workload, addressing posting and reconciliation. This assignment of tasks based on skillset produces better financial documents and reporting, which are essential for proper tax reporting.
Timely payment of invoices from suppliers and supporting vendors keeps a business operating correctly, especially when it depends on material support from other sources. Bookkeeping not only processes those invoices correctly for payment, the function also helps balance the checkbook of the business so that it doesn’t overspend in a given accounting cycle.
Don’t Struggle Unnecessarily
There’s no reason today for a small business and its management team to be constantly frustrated with bookkeeping. By simply bringing in outsourced partners for the bookkeeping service process, the business can run far smoother.
That saves money (because you’re not staffing full time to do this so no need to cover benefits, PTO, and more), it avoids critical internal staff from burning out, and accounting deadlines are consistently met on time for reporting and knowing where the company’s financial books are at.
