In today’s economy, many small business owners are looking to reduce costs and increase their profitability, and many of them are discovering that hiring bookkeeping services can save money and provides many added benefits.
Reducing Costs with Bookkeping Services
You may be looking at certain job functions and departments to determine if you can cut costs in any way, either by shifting to part-time employees, implementing desk-sharing and telecommuting to reduce operating costs, or moving to outsourced services to replace full-time employees.
The benefits to outsourcing certain business processes are vast, and fairly well-known. Using workers who are not your direct employees:
- Reduces infrastructure costs in terms of office space, supplies and utilities
- Reduces costs on social security and unemployment taxes
- Reduces the costs of employee benefits
- Minimizes the time you have to spend managing the business processes
- A service level agreement helps you ensure quality
- You'll Get an Unbiased Financial Opinion
One disadvantage of hiring an internal bookkeeper is that he or she may become emotionally involved with the day-to-day running of your business. An external bookkeeping service has nothing to do with your business. Its goal is to give you a clear insight into your business's financial position, not to pat you on the back and tell you everything is going to be OK even when it's not. A bookkeeping service will only do the accounting work required to keep your business up and running and show you its financial strengths and weaknesses.
- You'll Avoid Conflict of Interest
It can be risky for some businesses like partnerships to entrust the accounting to one of the owners. Accusations of misconduct could potentially ruin the business relationship, even when an error in record keeping is unintentional. An owner might find himself in the unfortunate position of having to make a choice between what is best for himself and what is best for the company. This isn't to say that he wouldn't put the business first, but others within the company might wonder about his intentions if something should go wrong.
Using an independent bookkeeping service avoids this pitfall and can boost confidence among the owners that all accounting statements are true, accurate and without bias.
Clearly, not having a full-time employee come to your office has benefits and is going to reduce your costs. But that doesn’t mean quality outsourced bookkeeping services come “cheap.”
However, you’ll still save money as you cut your bookkeeping and accounting costs. And that’s not because you’re getting a cut-rate bookkeeper who works in a call center halfway across the world. In fact, you save money because you’re paying only for the services you need, saving on infrastructure costs, and getting greater value for your dollar.
In general, most businesses don’t need a full-time bookkeeper to spend 40 hours a week managing their books.
When you work with Ledgers Online, your bookkeeper is our full-time employee. Our virtual accountants manage your books on a daily basis for as long as it takes, and only then move on to the next client. But they are always available via email or phone (and other online platforms) to answer your questions or provide accurate, timely financial reports when you need them. You get a quality bookkeeper, but pay only for the hours you need.
LedgersOnline provides affordable bookkeeping services for any business anywhere.