How Outsourcing Your Company’s Bookkeeping can Save You Money
Many small business owners erroneously think doing their own bookkeeping is a cost-saving measure. Actually, hiring a professional bookkeeping service like BookWerksTM to keep your books can be a way to economize.
Your labor and overhead costs are lower, professionals work more efficiently and can easily scale up or down, you avoid penalties and compliance issues, and you get access to better tools and reports for more informed decision-making.
Labor
With a professional bookkeeping service, there is no need to hire an in-house bookkeeper, or allot an existing employee’s “non-revenue generating” time to the recording of transactions. By outsourcing, you not only avoid the expense of hiring, you also save on training and retaining full-time employees (according to the Society for Human Resource Management, companies typically spend around $4,700 on average to recruit and hire a new employee), and paying their salaries, benefits, and taxes.
With outsourcing, you typically pay for specific services rather than a full-time employee’s availability, which can reduce costs significantly. With BookWerksTM, you pay a flat monthly fee based on the complexity of your business. There is never a surprise at the end of the month.
Overhead
Independent bookkeeper companies like BookWerksTM work remotely, so you save on office space, equipment and supplies. Cost savings are passed on to the clients – at least that’s how BookWerksTM does things.
And your investment in technology will be minimal as well. Most outsourced providers use their own accounting software, sparing you the cost of purchasing and maintaining software licenses.
Accuracy and efficiency
Our bookkeepers only do bookkeeping, so they work more quickly and accurately than an in-house employee who wears a number of hats. They are experts in handling the books of companies, franchises or small businesses like yours, and that usually means fewer costly errors or missed deadlines.
We use advanced tools and technologies, like the automated tracking of transactions and cloud-based accounting software. These improve efficiency and cut down on wasted time and resources.
Scalability
As your business grows or shrinks, outsourcing allows you to scale your bookkeeping arrangement with BookWerksTM up or down–without the cost and disruption of hiring or laying off employees.
You can use fewer of our services during slower periods, which will be another money-saver.
Opportunity cost
Having an employee work full- or part-time on bookkeeping takes away the opportunity for them to focus on revenue-producing tasks.
By taking your bookkeeping outside, everyone on your team can focus on serving customers or planning how to grow the business. Instead of spending time on administrative tasks, they can attend to increasing profitability.
Access to timely reports
With BookWerksTM, you get detailed regular reports such as
- Profit and Loss,
- Balance Sheet and
- Cash Flow,
that provide insights into operations and budgeting. With timely financial information, you have what you need to make informed business decisions.
For example, if you have several locations, you can see which one(s) are the most profitable and allocate resources differently. Or, if you see that certain days are more profitable than others, you can change your hours.
How much can you save using an outside bookkeeper?
If hiring an in-house bookkeeper costs $50,000 annually (including salary, benefits and taxes), outsourcing may only cost $4,000 – 12,000 per year, depending on your needs, potentially saving you as much as $40,000annually.
Outsourcing provides flexibility and access to expertise while reducing fixed expenses, making it a cost-effective solution for many businesses.
Call to learn more
Still wondering if outsourcing your bookkeeping is the right move? Understandable. Let’s have a conversation to flesh out the specifics of how BookWerksTM could benefit your bottom line.
Set up a free, no-obligation consultation with a bookkeeping specialist skilled in your industry, or give us a call at 513.373.7488.