Meticulous bookkeeping is a non-negotiable requirement for any successful business. When your books are in order it makes everything from tax preparation to financial planning, and even applying for business credit, much easier.
For businesses in their infancy, bookkeeping is a task that is usually done in-house. However, in the long-term, many businesses find that outsourcing their bookkeeping is an effective solution which frees up more time to focus on business growth and client-facing tasks.
Entrusting your bookkeeping to external professionals can feel daunting – so how can businesses decide when it’s the right time to make a change? The AMR bookkeeping team give their top five signs that it’s time for your company to outsource its bookkeeping.
You’re struggling to keep your books up to date
Falling behind with your books, or rushing through tasks and making errors, can create serious and costly repercussions down the line.
Meticulous bookkeeping is the foundation for successful business, and its importance cannot be underestimated. If you’re struggling to give bookkeeping the dedicated time and careful attention it requires, then you need to start doing something differently.
A professional bookkeeping team can work with you to fill in your bookkeeping gaps, rectify any errors, and continue to manage your books efficiently. This means you will no longer have to worry about your company running into issues due to avoidable gaps and errors in your reporting.
Your business is entering a period of expansion
As a business grows, so do bookkeeping tasks. If your organisation is looking to partner with other companies, or seek financing, your existing resources may not be equipped to adapt to the more frequent and sophisticated reporting required.
You also might not want to make a new staff appointment during this critical phase of growth – and question whether the bookkeeping workload would justify it.
At this stage, outsourcing your bookkeeping can provide the peace of mind that your books are being managed by a team of people who know what they’re doing, and have worked with businesses similar to yours before, giving you more time and energy to throw into managing your expansion.
Your disorganised books mean it’s hard to make financial decisions
On the flip side, businesses can stagnate when disorganised books make it difficult to draw up financial plans, analyse and forecast cash flow, and even review current performance. Outsourcing your bookkeeping can help you cut through the confusion and get your books in order, so you can steer your company in the right direction.
You want a cost-effective alternative to hiring
From VAT returns, year-end accounts, self-assessment tax returns, tax planning, payroll, and budgeting, bookkeeping tasks are varied and complex. Because of this, most businesses eventually need the expertise of a qualified bookkeeper.
Even if your bookkeeping workload justifies hiring a staff member, outsourcing is often a portion of the cost of hiring an in-house bookkeeper.
Not only will you save on salary costs and office space and equipment, but bookkeeping companies also have access to the latest industry tools and software, meaning their services are extremely efficient.
When you outsource, you can choose a professional who has already worked with businesses like yours, so you won’t need to undertake any training or management.
You just don’t like bookkeeping
You might not love bookkeeping – but there are whole teams of people across the UK who do!
You could be keeping your books in perfect order, but if you dread completing bookkeeping tasks and want to invest your time and energy into the aspects of your business that you do love, then it’s a sign that hiring a bookkeeping service could be the next logical step in your business’ journey.
If you want to discuss whether outsourcing bookkeeping is right for your business, give our friendly team a call for a no-obligation chat about our services and how we can manage your books. To get in touch, call +44 (1892) 489668, or drop us an email at info@amrbs.co.uk.
