by a As a business owner, working for extended hours and trying to manage accounting that most probably is not your expertise can not only lead to burnout but also inconsistencies in financial records due to errors or mistakes. Whereas, with bookkeeping outsourcing services, you can save a sufficient amount of your time and monetary resources that you can devote to other crucial business areas that directly add to your firm’s bottom line. Also, note that it is not only about saving time and money, it is more about ensuring accounts are managed well, taxes are paid on time, compliance norms are met, and reports are submitted to the government and other associated regulatory bodies.
Since you might not be able to manage all these on your own, you might end up having inaccurate numbers that you use for financial projections and budgeting. To help you understand what else could go wrong in a better way, here are;
7 Indicators Showing You Need Bookkeeping Services
Struggling to Find Time for Bookkeeping & Accounting
It makes sense if you manage your business books and accounts on your own in the initial phase. But as your business grows, you realize an increase in the number of clients or customers you deal with, more income, more expenses, increased requirements for financial statements, and the list has no end.
Being the owner of your business, you have many other responsibilities to manage and if you have less or no time for maintaining books, outsourcing can be an ideal option for you. You may outsource virtual bookkeeping services to a reliable provider and get more time to prioritize and focus on crucial, value-generating business areas
Failing to Manage & Predict Cash Flow
Have you ever found yourself in a situation where you have just closed a deal with a client and you know you have some income coming your way, but are not aware of how much and when it will reach you? Do you often find it challenging to plan business expenses? This is an indication that it’s time to start looking into cash flow statements.
Previous months’ cash flow statements help you understand how much spent and how much you earned. Similarly, cash flow projections help you anticipate how much you owe to your vendors, suppliers, or other business partners and how much they owe you. This majorly helps in planning and managing your expenses in a better manner. A bookkeeper or accountant can help you handle cash flow pretty well
Delaying Bill Payments
Bookkeeping and accounting are not just about crunching numbers to maintain records but also taking the required actions on time. For example, if you have an invoice yet to be processed with a forthcoming due date, if you are not aware of the deadline, you may end up paying more than what is billed, say for example – late payment charges/penalties. It can also lead to a situation where you don’t have enough funds to pay certain bills because you were not aware of those bills.
This can be a common problem with owners that do not have enough time to keep track of invoices. This can be a clear indication that you need professional bookkeeping services to prevent delaying bill payments and loss of money.
Growing Bookkeeping & Accounting Backlog
If your company is doing well, you might be busy serving clients, supporting them, taking care of their requirements, and doing anything to achieve complete client satisfaction. Have you realized while you were doing exactly what you are supposed to do, you might have made a cluster of financial documents from previous months pending to be recorded.
This is an indication that you need bookkeeping services. If you do it yourself, it might take you months to resolve it. On the other hand, you may outsource bookkeeping to professionals who can clear the backlog and streamline other parts of the process within a matter of a couple of weeks if not days.
Not Updating Books Regularly
This is one of the most common issues across businesses and industries. Updating the financial books on time is paramount. When you lag on bookkeeping, your financial records will not reflect the actual picture of your company’s financial position and performance.
Instead, the numbers can go wrong in a way that makes it difficult to assess cash flow and perform projections, which can also lead to incompliance, having repercussions like penalties. Therefore, it is a clear sign that you need bookkeeping services for your business to ensure timely and regularly updating books and other financial records.
Lagging Behind Taxes and Deductions
Mismanaged books can lead you to have a really tough time during tax season, making tax preparation really stressful for you. Accurate bookkeeping records provide the crucial information you review to prepare for business taxes and apply for tax deductions. In the absence of the same, you can miss out on such opportunities and the worst that can happen is the IRS might knock on your door for an audit due to an inaccurate tax return.
If you often face challenges, especially while preparing taxes, it is a clear indication you need to optimize the foundation – bookkeeping and accounting; and here you can take the help of professional bookkeeping service providers.
Increasing Data Security Concerns
If you are concerned about the security of your company’s highly confidential financial data, you have a valid point. But that doesn’t mean you should stay worried forever. It is time to take preventive actions. You might not have complete trust in your in-house finance team or someone sitting out of your region to access your financial information. But you may trust a firm that is ISO 27001 certified takes data security seriously.
Your concerns can vanish in the blink of an eye when you partner with a globally trusted, certified bookkeeping service provider who assures you of their concrete data security measures.
Business owners understand the value of money and time; while some see time as equal to money, many of them spend more time than they should handling crucial business areas like finance and accounting. As a business owner, you might find it beneficial to manage books and checking accounts on your own. However, you might have not realized taking your own time for granted.
After discussing these indicators, it is recommended to look for bookkeeping outsourcing services from a reliable provider, which can help you not only save time but also clear backlog, manage cash flow, maintain accurate financial records, and comply with norms. As a result, you get more time and energy to focus on business growth and expansion while your outsourcing partner ensures you rest assured about efficient bookkeeping.
Author Bio – Stacey Howard has 6 years of experience in accounting & bookkeeping. She has been working as an accountant with reputable firm Cogneesol– accounting and bookkeeping service provider. She has a unique way of networking through her words across the globe. Her writings shine through various forums that speak about her profession. She is the proper interpretation of an accounting profession drivenpassion for writing.