Why Businesses in Your Industry Outsource their Bookkeeping
Businesses of all sizes and across various industries use bookkeeping services to save time, reduce costs and make better-informed decisions.
Here are some types of businesses that commonly outsource their bookkeeping to firms like BookWerksTM and why:
- Small Businesses
- Cost Savings: Hiring an in-house bookkeeper is expensive for businesses with limited budgets.
- Focus on Growth: Owners can focus on sales, marketing and operations instead of financial recordkeeping.
- Compliance: Ensures accurate tax filings and regulatory compliance without a full-time accountant.
Examples:
- Local retail stores
- Freelancers or solo entrepreneurs
- Small-scale service providers (e.g., consultants, landscapers)
- Startups
- Resource Optimization: Startups need to manage funds efficiently, and outsourcing is cheaper than hiring in-house staff.
- Expert Guidance: Access to financial insights for managing cash flow and investor reporting.
- Scalability: Bookkeeping services can grow with the business as it expands.
Examples:
- Tech startups
- E-commerce businesses
- Mobile app developers
- Franchisees
- Standardized Reporting: Franchise agreements often require detailed and uniform financial reporting to franchisors.
- Royalty and Fee Tracking: Professionals help track and manage royalties and advertising fees accurately.
- Focus on Operations: Franchisees can dedicate more time to customer service and operational growth.
Examples:
- Fast food restaurants
- Gym franchises
- Retail chains
- Healthcare Practices
- Cost Efficiency: Reduces administrative burden while maintaining accurate records.
Examples:
- Dentists
- Veterinarians
- Physical therapists
- Construction and Trades
- Job Costing Expertise: Helps track expenses and revenues for individual projects.
- Seasonal Demand: Outside bookkeepers can adjust their service levels during busy or slow periods.
- Time Savings: Outsourcing reduces time spent managing subcontractors and materials costs.
Examples:
- General contractors
- Electricians and plumbers
- Landscaping businesses
- Professional Services
- Focus on Clients: Allows businesses to dedicate more resources to serving clients.
Examples:
- Law firms
- Marketing agencies
- IT consultants
- E-Commerce and Retail
- Inventory Management: Tracks inventory purchases, sales and shrinkage.
- Streamlined Integration: Links financial records with e-commerce platforms like Shopify or Amazon.
Examples:
- Online stores
- Boutiques
- Specialty shops
- Nonprofits
- Grant Tracking: Ensures funds are allocated and reported per grant requirements.
- Donor Management: Tracks donations and provides accurate reporting for transparency.
- Cost Efficiency: Operates on tight budgets with limited administrative resources.
Examples:
- Charitable organizations
- Churches
- Community groups
- Hospitality and Food Services
- Inventory and COGS: Tracks cost of goods sold (COGS) and inventory for profitability analysis.
- Seasonal Flexibility: Adjusts services during peak seasons.
Examples:
- Restaurants
- Hotels
- Event venues
- Real Estate and Property Management
- Transaction Management: Tracks commissions, rent payments and property-related expenses.
- Time Savings: Reduces the burden of managing multiple accounts for different properties.
Examples:
- Real estate agents
- Property management firms
- Commercial landlords
Why so many different businesses outsource their bookkeeping
- Access to expertise: The best bookkeeping companies are well-versed in financial regulations and industry-specific needs.
- Scalability: Outsourced services grow with the business, handling increased complexity or transaction volume.
- Time savings: Business owners can focus on core operations rather than administrative tasks.
- Cost efficiency: Avoids the cost of hiring and maintaining in-house bookkeeping staff.
- Improved accuracy: Reduces the risk of errors that could lead to financial issues or penalties.
Still asking yourself, “Why should I use a bookkeeping service?” BookWerksTM clients find that outsourcing their bookkeeping allows them to maintain timely and accurate financial records, reduces costs and helps them stay focused on why they went into business in the first place.