What is Bookkeeping?

Bookkeeping is a fundamental business practice because it provides a system for tracking and recording financial transactions. This information is then used to produce financial statements and reports, which are essential for making sound business decisions. What's good about bookkeeping is that all companies can do it, even small businesses.

Signs to Outsource a Bookkeeping for Small Business

While small businesses usually account for less, bookkeeping still matters for the same reasons bigger companies do. However, managing a small business is already time-consuming because of your various responsibilities, such as managing staff and addressing customer concerns. Outsourcing is always an option, but many small business owners refuse to do it because they think it's just an added expense. While it will does cost you, there are times when you're left with no other choice, such as:

#1 - You Spend More Time as a Bookkeeper than a CEO

As a small business owner, you're expected to wear many hats. You're the CEO, the marketer, the salesperson, and the bookkeeper. While it's good to be hands-on in your business, there's such a thing as too much. If you spend more time on bookkeeping than running your business, it's time to outsource.

The goal is to focus on the business, not on the books. As a CEO, your time is better spent on marketing, product development, and other aspects of the company that will generate more revenue.

#2 - You Have No Accounting Background

If you've never been trained as an accountant or bookkeeper, you will likely make many mistakes when recording your transactions. This is why it's best to leave the bookkeeping to the experts. A good accounting firm will ensure that your books are accurate and up to date.

#3 - There’s No Clear Separation of Duties

In business, everyone has something to do. As the business owner, you may be doing the books, ordering inventory, and selling products or services simultaneously. This can lead to blurred lines and a lack of separation of duties, which can cause problems down the road. Having clear boundaries between different areas of your business and someone responsible for each area is essential. This will help to prevent errors and to keep your business running smoothly.

#4 - You Have No Contingency If Your In-House Bookkeeper Quits

What will you do if you're relying on one person to handle your books if they quit? This can be a significant problem if you don't have a contingency plan. Outsourcing your bookkeeping duties is your best course of action because someone will be ready to take care of them for you. You can have peace of mind knowing that your books are being handled by a professional.

#5 - You Struggle to Meet Bookkeeping Deadlines

It could be time to outsource if you've struggled to meet your bookkeeping deadlines. This is especially true if you're putting it off because you don't have the time or are unsure how to do it. When you outsource your bookkeeping, you can have someone handle it for you so that you can focus on other aspects of your business.

Outsourcing your bookkeeping can be a great way to save time and money. It can also help to improve the accuracy of your financial statements and have someone you can rely on to take care of your books.

#6 - You Have No Idea Where to Start

If bookkeeping is entirely new to you, it will be a big learning curve. If you're starting a business from scratch or taking over a company that didn't keep up with its books, you may not know where to start. This can lead to a lot of frustration and wasted time.

When you outsource your bookkeeping, you can have someone come in and take care of everything for you. They can set up your books, train you on how to use them, and help you keep up with your bookkeeping going forward.

Conclusion

Bookkeeping matters for small businesses because it helps you stay organized regarding your financial records. Outsourcing your bookkeeping duties is good if you have little to no time for it, and it will help you focus on your business more. All that matters is finding the best bookkeeping professionals to ensure your books are handled correctly and accurately.

Acuff Financial Services provides top-quality services for bookkeeping for small businesses. Our bookkeeping professionals will ensure your business has all your financial records updated, for affordable prices. Simply go to our website to get started!