Bookkeeping Outsourcing: You Run Your Business. Let Professionals Do Your Books.
Steve Cook, CPA
Last updated: February 05, 2021
One definition of business is that a “business is composed of a set of interrelated systems that will ensure the smooth flow of business processes, which convert capital to revenue efficiently.”
Simply put, as business owners, we solve problems and get paid. The systematization of “solving” and “getting paid” is a business.
It is important for a business owner to consider each component of the “business”, which includes the bookkeeping process.
That is why we have:
- Professional Bookkeepers
- Certified Public Accountants (CPAs) – like me
- Financial Managers
- Tax Lawyers
- And dare I say, the IRS
It is because of the accounting and bookkeeping process.
Let Lucy get your books tax-ready.
Skip the stress. I’ll do your bookkeeping for you.
Even though most business owners dislike bookkeeping, they know that the measurement and the disclosure of essential financial information will help their:
- Financial managers
- Tax authorities – yes again, the IRS
- And other decision-makers
To effectively allocate their financial resources to each business process (marketing, sales, product development, etc), thus, maximizing the conversion of a capital to revenue (to make money).
Why is bookkeeping important?
Basically, bookkeeping involves recording and summarizing financial information (“the numbers”), so the business owner or CPA can interpret and evaluate “the numbers” to make effective business decisions.
In bookkeeping alone, there are several aspects that a business owner must consider, effective:
- Cost of bookkeeping
- Financial statements (balance sheets, profit loss, etc)
- Management of bookkeeping
- Tax preparation and filing
And the list continues to expand.
Since money is one of the biggest factors whether a business lives or dies, bookkeeping ought to be given the utmost attention and consideration at all times.
But does it? No.
Usually, bookkeeping isn’t considered until tax-time rolls around or a nasty bill from the IRS arrives.
You may want to consider bookkeeping as a serious and a critical matter – if though you don’t like it – that must be handled by a group of people who have the technical expertise in dealing with the bookkeeping as well as financial issues. Realizing this reality, more and more business owners and companies are handing-over their bookkeeping and accounting to third-party organizations – like ours, this is known as “bookkeeping outsourcing”.
Bookkeeping outsourcing is considered to be one of the more effective management tool. Many companies often incorporate outsourcing as one of their strategies in business planning. In fact, the Outsourcing Institute reported that the concept of a “Chief Resource Officer” (CRO), a professional outsourcing executive manager, is widely-acceptable in most larger corporations.
Of course, small-medium sized businesses (SMBs) could benefit from bookkeeping outsourcing.
Why outsource bookkeeping?
When SMBs outsource their non-core business processes, they usually provide better services or producing higher-quality products in a more cost-efficient way.
The result is an increase of the availability the business owner and administrative staff, so they can directly to their business:
- Client care
- Product/service development
Basically, when you and your team, aren’t worried or focused on bookkeeping, you can focus on generating revenue.
How and can you outsource?
Bookkeeping outsourcing services companies firms can execute your accounting and bookkeeping tasks in all frequencies (monthly, quarterly, and annually) or can supplement your present administrative staff to lessen the responsibility.
Here is a summary of the outsourcing bookkeeping services you can acquire from outsourcing your company’s accounting process:
- Preparing cash disbursement checks
- Preparing input credits and bank deposits
- Preparing company payroll
- Preparing tax deposits and bank reconciliation
- Preparing financial statements
- Preparing payroll tax returns
- Evaluation and review of financial results on different frequencies
With accounting and bookkeeping outsourcing, you will be able to see the benefits of having a cost-efficient business operation. With your bookkeeping process at the hands of professional Bookkeepers and CPAs, you can focus to the core of your business and convert every cent of your working capital into more revenue and higher profits.