Accurate and timely bookkeeping is the backbone of any successful business. A good, clean set of books can provide insights intot he business not visible with the naked eye.
Having an accounting firm do your bookkeeping almost guaratees accurate books which are necessary for making informed decisions, being compliant with all tax regulations, and achieving the long-term stability we all strive for.
While some small businesses may attempt to manage their books in-house, the smart ones are turning to accounting firms for professional help. In this article, we’ll explore why it’s often best to have an accounting firm handle your bookkeeping and how it can actually save you money!
Who Know’s This Stuff Better?
You wouldn’t take you car to be repaired at a bakery, so why would you, a skilled professional IN ANOTHER VOCATION, do your own books? Or have your wife do them?
Accounting firms employ accountants. And stating the obvious, they have specialized expertise in accounting and bookkeeping. They have implemented strategies that allow them to prepare your books efficiently, accurately and quickly.
Our firm is big on training and education, logging hundreds of hours a year improving our knowledge of all things finance. We stay up-to-date with changing regulations, ensuring that your financial records are compliant and accurate.
Having an Accounting Firm do your Bookkeeping Saves Time
Let’s be honest. You aren’t going to be as fast as an accountant or bookkeeper. And anyone you hire off the street is most likely a clerical level person. Accounting firms have a hard time finding good people, and we’re better equipped to recognize good candidates from bad.
Let’s look at it with numbers (these numbers are real):
Let’s pretend you’re a chimney sweep. It takes you about 30 minutes to an hour to clean a chimney. You make between $200-300.
It used to take you 8 hours a month (2 hours a week) to maintain your books. That’s 8 hours less money making work you can do. So at a minimum you are giving up $1,600 ($200 x 8 jobs). On the other side of the spectrum you could be giving up $4,800 ($300 x 16 jobs).
It costs $500 a month at an accounting firm (don’t trust those $89/mo places. Bait and switch is a thing with these companies). Collecting the info to take to the firm takes no time (everything is online).
You save time and money when you have an accounting firm do your bookkeeping.
Accuracy and Precision
Anyone play a musical instrument? Guitar? Piano? How about golf? Anyone play tennis?
If so, to get good you have to practice. A lot. You want to play Dust in the Wind on guitar? I promise, you won’t roll up and play it perfectly right away. You have to practice. A lot. Then you get good.
It’s a lot like that here too. We have spent thousands of hours developing our craft. We’re constantly educating ourselves. Getting better at what we do.
That’s how you get good. We’re good.
A Lot Less Stress
Look. I’m an accountant who runs his own accounting firm. I’m in business just like you. I live with the same stress and anxiety every other business owner lives with.
When my books get behind, this fact hangs from a thread in front of my face until its not behind. I’m so focused on doing client work I can’t always find time to do my own businesses books.
Sounds like I need an accounting firm to do my bookkeeping.
Think of a pebble that starts rolling downhill, picking up mud and dirt and sticks until the pebble is the size of a house. Add to this all the other things you have to think about when you’re in business and you can see how destructive this can be.
Managing your own bookkeeping is stressful, especially if you’re not up to speed in bookkeeping basics and are simply relying on QuickBooks to “do it right”.
Cost-Effective
A full time bookkeeper is costly when you consider the totla cost, i.e. salary, benefits, training and taxes. An accounting firm can offe you a package from doing everything including payroll, to paying bills and maintaining inventory. Plus the ability to scale up or down at a moments notice is incredibly efficient.
Accounting Firms Are Usually Very Tech Savvy
When an accounting firm does your bookkeeping you can be sure they are using some of the best tools. By paying attention to efficiencies, accounting firms generally use better tools and software than what a regular business may use. By using this technology, we can leverage this advantage to allow for a more streamlined bookkeeping process. The extra security every accounting firm must have also safeguards your financial records.
Makes Compliance Easier
Having accurate and timely prepared financial statements makes complying with the various taxing entities a breeze. Half of the battle is collecting all the pertinent information to prepare the tax filing in question. This can help you avoid costly penalties or legal issues down the line.
Financial Guidance
Accounting firms do a lot more than just bookkeeping. We can offer insightful financial advice, help plan for the future and optimize your tax strategies. Our expertise can be instrumental in your business’s growth and financial stability.
Allows You to Focus on Your Business
By handing your bookkeeping to an accounting firm, you will have more time to focus on growing your business. This specialization and focus on core competencies can lead to enhanced performance and success.
The Ability to Scale
As your business grows and expands, so do your tax and accounting needs. An accounting firms has the ability to adjust on the fly (what do you think we do every single tax season?) to ensure any additional work will be done on a timely basis.
Our firm is part of a network of outside accountants who we can bring in and have up to speed within days. This simply isn’t possible in most other businesses, but in this industry its the norm.
Accounting firms have been acting as overflow relief for clients for decades. And we’ve gotten better at it over time.
Conclusion
It’s understandable that you want to keep your finances in house. But the advantages and benefits of outsourcing your bookkeeping function to an accounting firm are hard toi ignore..
The expertise, experience and business guidance provided by a professional accounting firm can contribute greatly to the success of your business. By partnering with an accounting firm, you’re not just managing your books; you’re investing in the growth and success of your business.