Bookkeeping is the recording of the financial activities of a business. It is part of the process of maintaining the accounts of the business, and involves keeping track of such transactions as payments, purchases, sales and receipts being made by the business.
The bookkeeper captures the daily financial activities of the business in the petty cash book, suppliers’ ledger and general ledger. The summaries of these information provide the financial statements of the business.
Guided and driven by the need for the business start-up to maintain a lean staff, and the need for the business to focus on the core activities that enable it to generate income, it is possible, and indeed advisable, for the Small Business Owner to hand out the back-room activity of bookkeeping to an outside source, preferably a small-size accounting firm.
Here are some of the dividends of relieving the owner and staff of the business from handling bookkeeping work on their own:
1. Freeing Time For The Core Work Of Your Business: The back-end chores of running a business can easily become a time-wasting distraction, especially for senior executives who should be engaged more productively in activities that generate income for the business.
The act of outsourcing the bookkeeping operations of the business frees up time for the owner and staff of the business, which will enable them leverage their unique strengths and capabilities towards growing the business.
2. Cutting Cost And Saving Money: The business saves money when it outsources its bookkeeping work. By taking the work out, and paying only for the service rendered by the service provider, the business saves part of the cost of employing a full-time staff, who will be entitled to salary, wages and such other incidental remuneration as annual leave, pension, etc.
3. Affordable Access To Expertise: The outsourcing of bookkeeping services puts the books of the business in the hands of experienced professionals who the business may otherwise not be able to engage in full-time employment.
The synergy arising from his relationship brings the knowledge and expertise of the outsourced bookkeeper to the team, without the business having to pay for another full-time staff.
Clearly, a Small Business Owner who wants to save time and money, while keeping accurate records of the business, will greatly benefit from outsourcing bookkeeping work to the right professional accounting firm.
As a Small Business Owner, outsourcing your bookkeeping work will help you focus your time, attention and resources on the core competencies in which your business can excel. It will reward you and your team with the time to concentrate on setting new goals for your business and exploring how to achieve them.
Do you need help to outsource the bookkeeping function of your business? Check out the SME Clinic at https://smefinance.org/sme-clinic/.