1. Cost savings - Expect to see a small cost savings by outsourcing, but don’t make this the primary goal. The savings is likely to be 10% to 20% of the base wage of an in-house operator.
2. Manage less - Most business owners can only effectively manage a handful of staff. Consider hiring as many people as you can manage to carry out revenue-generating tasks and outsourcing other functions, including bookkeeping.
3. Own less - Every additional computer or software license you own is one more you need to track and manage. Apart from the upfront cost of purchase, troubleshooting these systems will add expense and require the business to learn new non-essential competencies.
4. Do what you love - Not enough emphasis can be placed on this. No client I’ve every spoken to went into business for the love of administration. There’s nothing worse than an unmotivated leader to bring down the morale of the whole crew.
5. Value creation - By engaging an outsourced bookkeeper, you physically restrict the number of hours you are exposed to bookkeeping per month. For most services businesses, one or two days per month is adequate. Tasks take as long as the time allotted to them.
6. Profit-per-square-foot - Rent constitutes one of the largest fixed costs for businesses. You want to maximize every dollar of this expense item and ensure the space is occupied by sales teams or producers who directly contribute revenue.
7. Privacy - You may want to keep the books confidential. One of the most outsourced financial functions is payroll. This is because payroll is complicated and many firms do not want to share salary details with internal stakeholders. By outsourcing bookkeeping, the accounts are one step removed from your staff.
8. Unbiased advice - In times of financial crisis, tough decisions need to be made. An outsourced bookkeeper will be more impartial than an in-house person, and will probably give you unbiased advice.
9. Improved control - Despite how it may appear, an outsourced bookkeeping company should provide you more control. Choose the software you want to use, the date each month the service is performed, the location and how reports are accessed.
Here at Totally Booked Services, we are dedicated to you and all your different bookkeeping, payroll and office administration needs.