17 Jul Should I outsource my bookkeeping?
Small business owners have plenty of things on their plates, from attracting new customers and keeping profits high to hiring the best talent and building a brand.
Sorting out tax records and invoices can sometimes feel like the last mountain you want to climb. Outsourcing your bookkeeping could take this pressure away from you, but is outsourcing bookkeeping a good idea? In this guide, we will answer this question.
We all know how important an accountant is to keep on top of a business’s financial data, and you may well already have one. A bookkeeper is slightly different from an accountant in that a bookkeeper is the person who collects and completes payments, manages the cash flow and maintains accounts. In small businesses, it’s common to find accountants who take up this role alongside analysing and interpreting your financial data and advising you on how to manage your money. Separating these two roles means that your accountant can focus on their main role of analysing the numbers and provide full dedication to this. Meanwhile, the bookkeeper can focus on creating and organising this data.
Whether you have an accountant or not, by outsourcing a bookkeeper, you are saving time on the hiring process that comes with finding new employees, meaning you can enjoy streamlined processes within your business much sooner.
Although it’s a brilliant idea to hire a bookkeeper, it isn’t always cost-effective for small businesses to hire one on a permanent basis. This is why outsourcing could be a better option because it means you only pay for the service when needed and you don’t have the added worries of sick pay, holidays or increased income tax to pay. However, if you can afford to hire a bookkeeper on a permanent basis, this is certainly the easier option.
Outsourcing bookkeeping means that you can trust that the organisation you have turned to has a raft of knowledge that they are sharing with your business. Hiring an employee can often be worrying because you can’t always guarantee they will perform at their best, especially if you are new to the interviewing process and don’t know what key skills bookkeepers need to have. On the other hand, outsourced bookkeepers are highly reliable and come with a raft of resources that can benefit your business.
Contact SQK Accountancy today for help with all aspects of accounting in the Manchester area.