Keeping accurate and up to date records is very important for your small business. It can mean the difference between realising you’re not as profitable as you thought so you can make changings, to realising to late and your business collapses.
Bookkeeping can seem like the last thing a business owner wants to do or has time for, as the main goal is always making money. Quite often a business owner can start off with good intentions but once the owner realises the amount of work involved, to correctly keep on top of the books, it can often be side-lined, which can will cause issues later on.
Here are five reasons why outsourcing to a bookkeeper is really good for your business:
Saves you time
This is the big one – it allows you more time to focus on your business and do what you do best. Instead of spending hours trying to reconcile the bank or work out how profitable you are, you can focus on running your business or you find it frees you up, so you can have time off and enjoy some of our lovely beaches in Cornwall. Time out is sometimes equally as important as it can allow you to feel refreshed. VAT returns and preparing for the year end can become a bit much for business owners when they need to concentrate on running their business. You may also have an employee who suddenly hands in their notice and you need to find the right person very quickly, something you just don’t have time to do, outsourcing can really help sort these issues.
Outsourcing to a bookkeeper who specialises in this field means you are buying experience, you may be able to hire an office person who does a bit of everything but this doesn’t mean they know how to bookkeep or will do it well. By hiring a specialist you are hiring someone who knows how to look after that side of your business and who will keep up to date with changes in finance laws. An experienced bookkeeper can bring a lot to your business and may be able to spot things that you haven’t in regards to profitability. If you have an employed bookkeeper who has been with you a while, you may find that they are resistant to change and struggle to move away from dated software. Outsourced bookkeepers are normally at the forefront at looking at better, more efficient ways to do things down to software and using add ons such as receiptbank and hubdoc.
Saves you money
You may only have a few hours of bookkeeping a week so to take on a permanent member of staff you are worried there won’t be enough work. You may find that hiring an employee who is trained and qualified is more expensive then you thought, by the time you add on holidays and NI and pension contributions. You also don’t have to worry if they are off sick, outsourcing means the books will get looked after regardless. If someone untrained has been doing your bookkeeping you may discover the books are in a complete mess and it can take quite a few hours to sort it out, which ends up being quite costly and stressful is deadlines are looming. By outsourcing to begin with you stop this happening as it is done correctly from the beginning.
Cloud based software means opportunities, you do not need to have a bookkeeper on site, this is really important with the current COVID situation. More and more people are working from home and you may not want a bookkeeper to come into your office or home, if this is where your run your business from. You are also not limited with the first bookkeeper you come across, you can make contact with several and find one that really suits your business. A quick search in google of ‘bookkeeping Cornwall’ will bring up a list of local bookkeepers and accountants who can help. You may want to narrow your search by looking at the software you use such as Xero and typing in more defined terms, that way you can make sure you choose not only the right bookkeeper for you, but also the one with the relevant experience.
You may be a Ltd company or a sole trader, you may be VAT registered or nearing the VAT threshold – each scenario is very different and it is important to comply with your statutory duties, if you don’t you may get a penalty or fine. There are also lots of changes each year, this year there is the reverse charge in the construction industry and changes to MTD being the big ones. Outsourced bookkeepers will be on top of these – it’s their job to know.