The rise of the online community has changed (or will change) the way in which we do business. It has brought us closer to people that can help with our day to day operations as well as back-end business needs, enabling our businesses to run smoother and turn more profit. One of the key places that this has really made a difference for business owners is in bookkeeping and financial information management.
We understand the trade-off between the additional cost of outsourcing your books, and the appeal of doing it yourself or with a spouse or relative. What we would like to highlight in this section are the advantages of utilizing a third party to assist in your financial information management. In over 50 years of combined partner experience there are two things we can be sure of: (1) If you have an amateur maintaining your records - you will not save money, and (2) Very likely you will have no indication of where you really are financially, other than how much cash you have in your bank account.
Strategic reasons for outsourcing
Focusing on your business: Companies that outsource certain routine functions are more capable of focusing on their business. Outsourcing your business’s financial operations frees up valuable time that can be put into bettering the company. Backend office functions can be a heavy distraction from the day-to-day running of things and having your bookkeeping in-house can lead to a conflict of interests.
Save money: The bottom line is that by outsourcing you save money on paying full-time or part-time wages and benefits to an employee. Further, you also save on lost productivity costs that come along with hiring employees onto the payroll. You only pay for what you need—nothing more, nothing less. This is particularly appealing for seasonal businesses. Deciding to outsource will also save you substantial amounts of money in regards to hardware, software, licensing, support and other expensive internal costs. If your ideal solution involves cloud based software this will dramatically increase availability, analysis and collaboration without you having to spend a lot of cash on the equipment.
Expertise on your side. Outsourcing gives you a great way to have full-time knowledge on your team without having to pay for it around the clock. By putting your books into the hands of a highly skilled staff who understand the best practices and how to properly staff for certain tasks, your job becomes a whole lot easier—and effective. Place your financial records in the hands of a staff that thrives on teamwork. Unfortunately, one bookkeeper is often not enough to find every subtle nuance that can benefit your company. But when you outsource, you have a team of workers and managers checking and double checking each other’s work, helping to ensure that you receive the best services possible. This also helps keep a separation of duties i.e. HR and purchasing are as individually accountable as credit services and customer care. No more worrying about your administrator being away, or other forms of staff related turnover.
Scalable technology: Migrating to newer technologies (including the Cloud) allows you to enjoy all the best features and enhancement of new technology without spending a lot of time updating and training internally. A lot of businesses can’t afford to pay for the expensive systems and programs in a stand alone setup, nor can they afford to spend the time keeping up with changing laws and regulations. By outsourcing, you’re essentially purchasing those tools and that knowledge by proxy, but it’s even better—you don’t have to actually do any of the work! Plus, these cloud based systems create nightly backups and keep organized records and books for years. In the event of any major accidents or worst case scenarios - disaster recovery and detailed back ups will help you respond to the situation and ensure your operations are not held up. Should the CRA come knocking for an audit, you’ll be more than prepared for them. Outsourcing your finance function allows you to expand or cutback in the blink of an eye.