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When you start your business, it’s likely and understandable that bookkeeping comes as an afterthought. Unless you’re an accountant, your focus will be somewhere other than bank reconciliation or keeping up with Making Tax Digital regulations for VAT.
There’s enough on your plate already without having to worry about which bookkeeping software to download, and unless your finances are going to be particularly straightforward, you’ll probably consider seeking help from a professional to streamline and get the most out of the process. You may think that outsourcing your bookkeeping is an expense that you can’t afford, but there are plenty of benefits of doing so.
Save Time
Your time and talents and those of your staff are better spent elsewhere in the business. By passing the time-consuming task of balancing the books onto an external professional, you free up the resources of managers and directors to focus on what they’re really there to do.
Save Money
That’s right, while you may consider the outsourcing of your bookkeeping as an expense, it actually has serious potential to save you money, both in the short and long term. With a professional at the helm, you’re much less likely to miss outstanding invoices and payments you’re owed. Your accountancy fees may even reduce as a result of your newfound sturdy bookkeeping. Poor historical bookkeeping can be the cause of many accountancy queries which end up costing you down the line as they mount up.
Better Cash flow
With bookkeeping outsourced to a professional, you’ll find that you’ll be provided regular, up-to-date information regarding your cash flow and business performance. Without that information you may otherwise have to wait until the end of the financial year to see how your business is performing. Having a view of up-to-date financial reports and well maintained books can have great knock-on effects and help you to produce clear and accurate cashflows. That accuracy in your cashflow will be of great benefit for financial and tax planning.
Credibility
Having well maintained and professionally handled bookkeeping can not only give a business owner peace of mind that everything’s in order, it’s also looked upon favourably by banks and other financial institutions. Potential investors, lenders and stakeholders will look for credibility surrounding your finances. There’s no good reason to risk falling at the last hurdle of fundraising due to poorly managed books.
For some, handling your own bookkeeping is an option worth considering, but it’s important to weigh up the benefits of using external professional help. If you have any queries around whether outsourcing your bookkeeping is right for you and your business, we’re happy to help and point you in the right direction.