What are professional bookkeeping services and why do you need them? Simple: they’re the backbone of your financial team. However, many companies mistakenly believe they can do without them.
There are plenty of myths we tell ourselves, especially when it comes to outsourcing your small business bookkeeping. We do ourselves a disservice by following misinformed and incorrect advice. We often spend more money and take more time trying to bookkeep by ourselves than by using a traditional bookkeeping company.
Quality bookkeeping isn’t just a pipe dream. The following myths are all that stands in your way of making an informed choice about your business and its bookkeeping needs.
Myth #1. Outsourcing is more expensive!
Take a moment and consider how much you make per year. How much do your employees make? An out-of-house bookkeeping team isn’t half as expensive as hiring an in-house bookkeeper and financial staff. If you factor in software subscription fees, constant classes on new laws and program updates, office equipment, and health benefits, that adds up to a whole mountain of cash.
By hiring a bookkeeper outside of your company, you only have to pay one fee to connect with professionals ready to assist you. The total cost is cheaper than hiring a full time staff, both short and long term, especially when you factor in ongoing training, raises, benefits and so-on.
The recurring cost also prevents additional bills from racking up, since outsourced bookkeepers are less likely than in-house teams to make errors.
Myth #2. I can just do it myself!
When your faucet springs a leak, would you say “I can do it myself” to your plumber? How about when your car makes a knocking sound? Would you look your mechanic in the eye and swear “I can just fix it myself”?
Specialists exist for a reason and bookkeepers are no exception. Although many incredibly do-it-yourself software options exist, such as Quickbooks, a proper bookkeeper can help you get the most out of your finances. You might be able to do many of the basics yourself, but for a full experience and service, hiring a bookkeeper is the smartest way to go, especially with the nuances of business expenditures, diversified cash flows, and the legal ramifications associated with incorrect reporting.
As your business grows, so too will your budget and your sales. That’s more money coming and going that you need to keep track of. Rather than spend precious time on monitoring your cash yourself, a professional bookkeeper picks up the reigns and lets you know through consistent reporting and timely updates how your business is doing and what you need to be aware of.
Myth #3. You can’t trust third parties.
Your business is your baby. But like many proud parents, you’re going to need to learn when it’s time to let go let grow.
The business you’re trusting your bookkeeping to is run by someone very similar to you. They care deeply about the success of their company and, by proxy, yours. Your success is their success and they rely on your good opinion for continued business.
Vetting a bookkeeping company is important, but at the end of the day, finding a good fit for your needs is the most vital element. Do your research, take meetings with your top candidates and find the right fit for your business.
Myth #4. Data entry isn’t worth the cost.
Don’t be fooled; bookkeeping isn’t just data entry. Professional bookkeepers do far more than just type numbers into software. Bookkeepers are in charge of your business numbers, which means they’re constantly reviewing your financial datasets for errors. If they find a discrepancy, they’ll not only point it out to you, they’ll also be able to take steps to fix it.
A good bookkeeper is worth their weight in gold. They create specialized reports for management that allow better insight into your business and highly informed decision-making. When your clients or suppliers haven’t paid, they follow up and make sure that invoices are promptly taken care of. Professional bookkeeping services aren’t just mindless fingers on a keyboard; they’re the wheels on the corporate bus. Without them, it’ll sure take a whole lot longer to get to your next destination.
Myth #5. Outsourcing means losing control.
Giving your data and finances to another company doesn’t mean you’re no longer in control of it. Part of good leadership is knowing when to delegate, and nothing says ‘solid management’ like outsourcing a tedious task that you don’t have the resources to handle in-house.
Part of a bookkeeper’s job is to create and organize specialized and scheduled reports that keep you updated and aware every step of the way. Outsourcing this service is no exception.
Don’t let myth keep you from reality!
Your time is best served focusing on your core business, not on the day-to-day tasks of bookkeeping. Outsourcing your bookkeeping services can help you save time and allow you and your staff to focus on what you do best.
Lloyd and Hodge provides access to reliable and up-to-date data whenever and wherever with our digital cloud platform. Say goodbye to endless cabinets of folders with our paper-free system & secure login for worry-free organization. Stay on top of everything with regularly scheduled Analysis of Business Performance reports.
Outsourcing your bookkeeping is a simple click away. Lloyd and Hodge is here to help get you set up for success with the convenience and peace of mind of professional bookkeeping services and easy to use cloud accounting software. Tracking your finances has never been easier.
Bringing your business into the digital age has never been easier. Contact us and find out what Lloyd & Hodge can do for your business today.
