Whatever business you're in, it's important to have reliable accounting functions and procedures in place as well as a viable bookkeeper you can trust with your books. Knowing your financial position on a day to day basis gives you peace of mind to think strategically so you can grow your business. Knowing where your financials are gives you the ability to make BIG decisions with last minute surprises.
SHOULD I OUTSOURCE MY BOOKKEEPING?
Bookkeeping is a specialized trade. One must be up to date with the different laws and have good processes and procedures in place. It involves preparing source documents for all transactions, operations, and other events of a business.
Why you should consider outsourcing your bookkeeping…
Is “More-Less?”
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While you may be trying to cut corners to save money, you might actually be costing your company more money. According to the American Psychological Association multitasking causes mental overload which takes a toll on productivity because our brains simply were not designed to handle heavy-duty tasking.
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Mistakes will happen! The more we try to multi-task, the more time we lose because we spend time cleaning up. “You have a couple different balls in the air, but you’re only really touching one at a time. You’re catching and releasing quickly and hopefully paying just enough attention to the other balls that as they’re coming down you can swoop in and catch a new one just after releasing the prior.” There are really only two outcomes when you attempt to juggle tasks: you either drop one or do both slowly.
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FRAUD Alert!
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Small business fraud could be costing you and you don’t even know it! Is the employee you have doing your bookkeeping also reconciling your statements? Are there internal controls in place? Employees can change and alter checks. According to Business Fraud Prevention private companies and small business rank highest in occupational fraud frequency at 42% compared to large corporations, governments and non-profits.
Employees CALL IN
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Who is the designated person to cover the role of your bookkeeper when she calls in sick or takes a vacation, or quits without notice?
Accountability
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“My on staff bookkeeper paid our bills late and there are penalties. Can I hold the bookkeeper accountable as an employee?”
Consult with your attorney before deciding if this could fall under the vicarious liability.
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When you contract with a bookkeeper and they make a mistake that costs you, then you can take action to recover that loss. Be sure to hire a bookkeeper that carry’s indemnity insurance.
Business partner conflicts
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Issues can arise when there are partners involved. There can be disagreements of how money should be spent which can cause conflicts with partners. Eventually these conflicts can cause the company to fail. For this reason a bookkeeper should be a gateway creating processes to stop partners from withdrawing money.
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How to cut your EXPENSES
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NO Payroll or Payroll Tax
NO Benefits Costs
NO Workers Comp or Claims
NO Transportation Costs
NO Costs to Furnish or Equip an office