Should I Outsource My Bookkeeping?
For most businesses, there comes a point where you need to outsource certain activities and responsibilities. Whether it’s because of time constraints or just a lack of knowledge in a certain area, outsourcing is a useful way to keep everything running smoothly and allow your business to grow.
But is bookkeeping one such activity? In this post, we explore whether your company should outsource bookkeeping, and the potential benefits of doing so.
What does bookkeeping entail?
In the first of our six-part series, we looked at the role of the bookkeeper in more detail. They process company transactions, produce financial reports and even liaise with employees to explain budgets and track inventories. In short, they keep everything running smoothly in a financial sense.
This is distinct from the role of an accountant, as discussed in our second instalment. An accountant will analyse and interpret financial data, liaising with financial bodies like bankers and HMRC. Both roles are dependent upon one another to some extent, and some firms will provide both services.
But how will these services benefit you?
1. Save time
The first benefit of outsourcing bookkeeping, and what pushes many firms to outsource in the first place, is time. Bookkeeping is heavily time consuming, especially if it’s not your main role. A lot of business owners or managers attempt to keep track of their own paperwork, invoices and financial records, which is manageable for a short while.
Things soon chance once you start taking on more clients, more work and more employees. If you find yourself trying to juggle bookkeeping with your primary day-to-day tasks, it might be time to outsource.
2. Improve accuracy
When you try to keep bookkeeping in-house, whether it’s your responsibility or passed to one of your staff, you will always encounter some mistakes. Bookkeeping tasks will be rushed or even pushed to the side. Without specialist training, it’s inevitable that there will be some errors. Unlike running your own social media accounts, bookkeeping errors could cost you big in the long run.
3. Add expertise
Arguably the biggest benefit of outsourcing bookkeeping is the ability, expertise and insight you add to your team. Rather than trying to juggle it yourself or forking out on a full-time addition to your team, you can get the very best in the business working on your books.
The result is invoices sent on time, records kept up to date and accuracy across the board. Your business will have a better idea of cash flow and inventory, allowing you to focus on what you do best.
Outsource your bookkeeping
If you’re looking to relieve the strain on your employees and improve the way your books are kept, UWM can help. We’re a team of expert accountants in Leeds, offering smarter bookkeeping for businesses across the UK. With our watertight services, you can save time, money and a lot of hassle.
Contact us today to talk more about how we can help.