It’s no secret that bookkeeping is time-consuming and, frankly, a bit of a pain. If you’re running a business, chances are you have better things to do with your time than crunch numbers and reconcile accounts. That’s where outsourcing your bookkeeping can come in handy. This can be a great solution for businesses that are growing rapidly and don’t have the time or resources to handle their own bookkeeping. In this blog post, we will discuss some of the signs that indicate you are ready to outsource your bookkeeping.
1. Unable To Focus on Core Business Functions
When it comes to running a successful business, there are a lot of moving parts. There is a lot to juggle from handling customer inquiries and managing day-to-day operations to keeping up with marketing and sales. For many businesses, bookkeeping falls by the wayside. This is often because business owners simply don’t have the time to keep up with it. Between managing other aspects of the business and taking care of customers, there is often little time left over for bookkeeping.
However, this is an important task that should not be neglected. If you spend too much time on bookkeeping and not enough time on other important aspects of your business, it may be time to outsource. This will free up your time to focus on more important tasks, such as growing your business.
In addition, outsourcing can also save you money in the long run. You won’t have to hire a full-time bookkeeper, and you won’t need to invest in expensive bookkeeping software. Instead, you can spend time and money on more important aspects of your business.
2. You’re Losing Money Due to Inefficient Bookkeeping
Losing money is never a good sign, but it can be especially troublesome if it’s due to inefficient bookkeeping. Most self-taught bookkeepers are prone to making mistakes on the balance sheet, such as not tracking expenses correctly or not understanding their true margins.
If you find that your bookkeeping is costing you money, it may be time to outsource. By hiring a professional bookkeeper, you can ensure that your finances are in order and that you’re able to focus on running your business. In addition, a professional bookkeeper can offer valuable insights into where you may be losing money and how you can improve your bottom line.
3. High Labour Costs
For any business, bookkeeping is a necessary evil. It’s important to keep track of your income and expenses, but it can be time-consuming and expensive to do so. If you’re spending a lot of money on labour costs for your bookkeeping, it may be time to outsource. This is especially true if you hire full-time employees to handle your bookkeeping. Many bookkeeping services offer affordable and scalable solutions for businesses of all sizes. In addition, outsourcing can free up your employees to focus on other tasks. This can help to improve your bottom line and increase your profitability.
4. Your Business Is Growing Rapidly
If your business is growing rapidly, it may be time to outsource your bookkeeping. This is because as your business grows, so does the amount of data you need to track. This can quickly become overwhelming for most business owners. In addition, as your business grows, you will likely have less time to devote to bookkeeping.
In addition, you can be confident that your books are being handled by a professional who is up-to-date on all the latest bookkeeping software and regulations. This is because most outsourcing companies have experience dealing with large amounts of data. As a result, they can offer a level of expertise that most business owners cannot.
5. You’re Considering Selling Your Business
When it comes time to sell your business, one of the first things that potential buyers will look at is your financial data. Buyers will want to see things like your income statement, balance sheet, and cash flow statement. They will also be interested in your tax returns or audited financial statements. Having all of this documentation in order will show buyers that you are a responsible business owner and that your business is in good financial health. This will make them more likely to make a higher offer for your business. So, if you are considering selling your business, get your financial house in order first.
6. You’re Concerned About Your Data Security
Data security is a big concern for many businesses. If you’re worried about your financial data security, it may be in your best interest to outsource your bookkeeping. Most outsourced bookkeeping companies use state-of-the-art security measures to protect your data. They will often have insurance to cover any losses that may occur as a result of a data breach.
In addition, most outsourcing companies have strict confidentiality agreements in place. This means that your data will be safe and secure with them. So, if you’re concerned about the security of your data, outsourcing may be the best option for you.
7. A CRA Audit Is on The Horizon
If you’re facing a CRA (Canada Revenue Agency) audit, it’s important to have all of your financial documentation in order. This includes your bookkeeping records. If you don’t have your records in order, the CRA could come after you for back taxes and penalties. To avoid this, be sure to keep meticulous records of all of your income and expenses. You may also want to consider outsourcing your bookkeeping to a professional. This is because most outsourced bookkeeping companies have experience dealing with audits. As a result, they can help you to prepare for and manage an audit.
Our Final Thoughts
Outsourcing your bookkeeping can save you time and money. It can also free up your employees to focus on other tasks. If you’re considering outsourcing, be sure to consider all of the factors above. This will help you to decide if it’s the right decision for your business.
For more detailed information and advice, schedule a Free Consultation.