Your External Bookkeeper – An Independent Expert
There are many reasons why an external Bookkeepers are a good investment for many businesses, not least among them is that they are independent. This can help your business move forward as you will have independent, detached advice and guidance about the state of your finances.
Try as they might anyone who works for you is going to be emotionally involved with the business – after all they depend on it, they like you and want you to succeed which can occasionally give rise to mixed messages. No one is suggesting that your Bookkeeper will give you false advice but it is very hard to be detached and unemotional about your workplace, you have invested much of yourself in it and care about the people you work with and for. An external Bookkeeper will be far more detached and will be focused solely on the numbers rather than the personalities involved. The insights they offer may be positive or negative but you can be sure that they will be independent and may offer valuable insights.
Of course you have a good idea about how your business is doing, whilst you may not have exact numbers at your fingertips, you should be aware of how your Profit and Loss account is looking – but have you? Have you remembered to allow for everything? Do you know what your cost of sales really is? What about that Tax payment coming due? If you are doing your own books and do not have much experience are you able to pick up irregularities and know what to do about them. An external Bookkeeper can make sure everything is in place, produce reports and keep you on the straight and narrow. They will provide you with both the ‘big picture’ longer term view as well as the up to the minute current situation enabling you to make sound decisions about the future.
One of the greatest advantages of having an independent bookkeeper is that you have the benefit of their experience. Many bookkeepers tend to work within an industry sector. This gives them a familiarity with the market in which you are working and they will bring this to the table as well as their bookkeeping skills. They will be aware of the pitfalls and opportunities as well as things such as seasonal variations, market forces that affect you. A wise business owner makes use of knowledge and experience wherever they find it.
When you outsource your bookkeeping much of the work is done off site which allows the person working on your books to remain focused rather than being distracted by the day to day minutiae of working in your office. It helps them to remain detached and focus on the facts of the business rather than the personalities – and less likely to make errors.
Not least knowing that your books are taken care of allows you to put your focus where it should be – on your business.