Is it possible to save money by outsourcing your bookkeeping? In the last few months, this question has been disturbing small businesses like no other.
A business journey often involves unexpected and unfamiliar challenges. It is difficult to pinpoint one reason, but most are caused by mismanagement of finances, especially when a business tries to push boundaries and innovate beyond its ability to spend.
CB Insights shows that 29% of start-ups fail because they run out of cash or for similar reasons.
Keeping track of your finances is an important part of running a business, but it can also be time-consuming and costly. Though, there are many ways businesses can save money. Outsourced accounting services remain the most popular.
If you are like most entrepreneurs, having a hard time managing money to support your everyday operations? Wondering about outsourcing the daily bookkeeping chores but are not sure it will be worth the investment; this blog is for you.
In this blog, we will tell you how bookkeepers help you save money while effectively managing daily bookkeeping tasks.
Providing Cost-effective Automation
Among the major benefits of hiring outsourced bookkeeping services, Australia is leveraging automation to save time and resources. It refers to the use of technology to perform tasks without the need for human intervention. Daily operations can be made more efficient and productive, while improving quality and consistency with the automation of less important and repetitive tasks.
As outsourced bookkeeping companies manage multiple clients at a time, they use advanced accounting and bookkeeping software to record and manage daily transactions, which ultimately helps their clients with their tech-savvy methods and save on labour costs without investing in costly software.
Make data-driven decisions possible.
Making better business decisions that result in the best results requires much more than just wisdom and luck. It is a process of using data and analysis techniques, which can only be done by professionals.
When you outsource bookkeeping, you will be able to leverage the expertise of experienced professionals and their advanced tools, rather than relying on your own experience or inexperienced personnel and get the same services at a much lower cost than hiring them as full-time employees.
Financial consulting at no additional cost
Another significant benefit of outsourced bookkeeping services is the expert financial advice they give on important financial matters and their ability to identify cost effective & safe investment opportunities. Having someone to turn to for consulting before making any major business decision can save you money.
As they would be responsible for handling all your daily bookkeeping operations and preparing reports for you. Their financial experts will be your first point of contact before making any major business decision, directly or indirectly involving investment of money. While most bookkeepers do not charge for financial consulting to current clients, their paid services may include additional value, such as financial planning and budgeting consulting.
Save on hiring, training, and onboarding resources
Businesses can save more money by using bookkeeping services in Australia rather than hiring in-house bookkeepers or accounting professionals. Well, it might not seem like a great way to save money (morally), since good employees are among the most valuable assets of any company. Businesses starting out or planning on scaling their business functions can benefit from this technique.
It has many good reasons, though. When you hire outsourced bookkeeping services, you will have direct access to experienced bookkeepers with experience in similar domains, and handling challenges like yours. This way, you can meet all your requirements for professional accounting and bookkeeping expertise, without investing in hiring, training, and onboarding new resources.
Experience of top expertise at low cost
A huge benefit of outsourcing bookkeeping to remote bookkeepers is the instant access to new and competent accounting and bookkeeping expertise. Rather than waiting for someone in your office to have the time to learn about. This may involve learning the latest versions of accounting or bookkeeping software procedures, etc.
Why would you spend time and money on something you can outsource immediately, and have someone on hand who knows how to work with these programs efficiently? Similarly, outsourcing allows you to gain access to expertise and extra knowledge that a full-time employee would not have. Not only does this help with accuracy, but it also speeds up the process, making it easy for you to keep up with compliance requirements and financial records.
For example, a company may choose to outsource certain technical tasks to a firm that specialises in those tasks, rather than hiring and training employees in-house. This can allow the company to access top expertise at a lower cost, as the firm will likely have a team of highly skilled professionals who can handle the tasks efficiently.
Similarly, outsourcing to lower-cost offshore countries can yield many benefits by leveraging the global talent pool.
No or less office space with outsourcing.
The remote working model, popularly known as “work from home,” is for businesses looking to save money. It was previously used to accommodate office space, maintenance and operational expenditures, electricity needs, and new resources.
Outsourced bookkeepers allow companies to reduce the amount of office space required for daily bookkeeping operations. This is because, when you outsource, you delegate certain tasks or processes to external contractors or service providers rather than handling them in-house.
Here are some steps you can take to save on office space by outsourcing:
- Identify the functions or services that can be outsourced
- Research outsourcing options
- Set up a virtual office
- Use collaboration tools
- Avail WFH and hybrid working alternatives
Pay for only productive work
Paying for only productive work refers to the idea of only paying workers for the time they spend actively engaged in productive tasks. Outsourced bookkeeping services provide you a liberty to enjoy similar benefits.
Most bookkeepers and outsourced accounting firms offer fixed rates and pay-as-you-go payment options to their clients. So you only pay for the productive hours bookkeepers spend completing the actual work. This saves a significant amount of time in planning and executing the project in-house.
Quick tip: This system can be used to encourage in-house employees, or “workers,” to be more efficient and productive, as they are only compensated for the work, they actually complete, and appreciated with time-based incentives for going the extra mile. It is also important to carefully consider the implications of this approach and ensure that it is implemented in a fair and equitable manner.
When you outsource your financial operations, you save money, you save time, your finances are managed by trained experts, and you’ll be able to focus more on doing what you do best: running your business.
But here comes a million-dollar question:
How do I find the perfect outsourced bookkeeper for my business?
To answer this question, here are a few steps you can take to find a reliable and competent outsourced bookkeeper in Australia:
Determine your needs: Have a clearly defined scope of work that you need the bookkeeper to handle. This will help you narrow down your search and find a bookkeeper who has the necessary skills and expertise.
Search for bookkeepers: Look for bookkeepers in your area who offer outsourced services. You can search online or ask for referrals from other business owners or professionals.
Check their credentials: Make sure the bookkeeper has the necessary qualifications and certifications, such as a degree in accounting or a certification from the Institute of Certified Bookkeepers.
Look for experience: Consider the bookkeeper’s level of experience in handling the specific tasks you need help with. It may be helpful to find someone who has experience working with businesses similar to yours.
Review their references: Ask for references from the bookkeeper and reach out to their previous clients to get a sense of their work style and how satisfied they were with the bookkeeper’s services.
Consider the cost: Determine your budget and compare quotes from different bookkeepers to find one that fits within it. Keep in mind that the cheapest option may not always be the best choice.
Meet in person: If possible, arrange a meeting with the bookkeeper to discuss your needs and see if you feel comfortable working with them. This can also be a good opportunity to ask any additional questions you may have.
Still not sure about hiring remote bookkeepers?
Speak to one of our expert bookkeepers today and hear what makes them different from others. Call +61 (0) 466 228 000.
At Mizael Partners, we help businesses with their bookkeeping needs, including monthly reporting, payroll, invoicing, debt collection, tax compliance, managing business expenses, and using advanced accounting and bookkeeping software solutions.
For more information, Visit- https://mizaelpartners.com.au/accounting/bookkeeping/