Outsourcing Your Bookkeeping Will Save You Money
Most people think outsourcing your bookkeeping is not an economic way forward. Keeping a grip on costs is difficult for any business, especially startups where everything seems to cost more than you budget for. Payroll and staff costs are always a major part of those costs and on the surface it often seems cheaper to hire your own staff than to bring in expensive specialists from outside. However when you look into it more deeply it becomes apparent that it may not be the case.
There are many hidden costs, not all of which are financial, in the simple task of finding a suitable Bookkeeper:-
- Time spent drawing up a job description
- Time spent creating an advert
- Cost of Advertising or employing an recruitment agency
- Time spent sifting through the applicants
- Time spent Interviewing
- Costs of interviewing
- Time spent taking up references
- Training and Induction time
Finding a perfect fit for your business can take a long time often involving several interviews. This is time you could spend on your core business.
Well qualified and competent Bookkeepers are not cheap and will demand a significant salary with appropriate benefits. Unless you are employing 30 or more employees or your revenue is in the region of £1 million annually, it is highly unlikely that you will have enough work for a full time Bookkeeper given that most companies now use computer based accounting systems and tax submissions and payments are done online.
Reduce Staff Turnover
The turnover rate for Bookkeepers is fairly high, even in the current uncertain job market. New opportunities, lack of appreciation and even straightforward boredom are the most common reasons. Very often there can be conflict between the business owner and their Bookkeeper who often has to present information the owner may not want to hear which does not produce a happy working environment.
Regardless of the reasons why a business may suddenly find itself without a bookkeeper it can cause considerable disruption within the business. Many of the ‘taken for granted’ tasks such as Credit Control, Tax payments and making sure new financial regulations and legislation are implemented can slip through the net.
With a reliable Bookkeeping Service you are not left in the lurch as clients are rarely dropped, at busy times of year extra staff can be drafted in and your business is kept on the right path.
How Outsourcing Your Bookkeeping Saves Money
If you outsource your bookkeeping all you have to do is collect invoices, payments, credit sales and other relevant financial information, then hand over the necessary paperwork to the external bookkeeper for accounting purposes who will deal with it as appropriate.
The most obvious cost benefits are lack of wages, taxes, pension contributions, holidays and other employee benefits. The cost of a bookkeeping service will be much less than a full time employee. You pay only for what you need, when you need it.
Using a reputable bookkeeping service reduces the risk of human error because they will have quality control systems in place. They have specialist knowledge across a range of industries and will ensure you claim all the tax reliefs and benefits that you are entitled to. You are less likely to miss payments or incur penalties and your credit control will be better. It is the Bookkeeping services best interest to make sure your business in in sound financial health.
What About Accounting Software?
Low cost accounting software is often a false economy. Someone still has to enter the data and the software is often not up to date with the latest legislation and regulations. However good a piece of software is it cannot manage your cash flow or your tax payments, neither can it interpret the many reports it generates. When you outsource you have a highly specialised team at your beck and call that will be a source of information and advice, often gained over many years experience, helping your business to grow.
Your Bookkeeping Team will have access to much more sophisticated systems that are beyond the financial reach of many businesses. When you outsource your bookkeeping you effectively have access to the best tools, backups and full reporting should you ever be subject to an investigation. You records will be up to date with current legislation and regulations without having to spend valuable time that could be spent on building your business.
A good bookkeeper should be your financial watchdog. They should not be afraid to tell you unpalatable truths about your business. This is incredibly difficult for someone you employ. Your external bookkeeper wants to keep you in business and will give you guidance on the best way to take your business forward often spotting trends before you do as they will look at your business with a more dispassionate eye. Outsourcing your bookkeeping gives you a team of experts you can rely on to have your best interests at heart.
If you would like to know what an external bookkeeping service could do for your business, Farries Bookkeeping Services offers a free consultation. All you need to do is send a request via our Booking Form or call us on 01625 409116 and we will be in touch to arrange a meeting.