Significance of “Outsourcing – BookKeeping”
One of the biggest challenges for small to mid-sized companies is efficiently managing and updating financial records. The task often falls on the company’s owner who is busy enough trying to run the day to day business functions. If financial record keeping responsibilities doesn’t fall to the owner, they are often delegated as an additional responsibility to another employee who may not be fully trained in accounting and bookkeeping.
Bookkeeping and your overall financial management are the one area in your organization where it’s dangerous to have a multi-tasking staffer.
Wouldn’t it be great to have expertized paid bookkeeper always at your fingertips? What would be even better than that having confidence that those figures computed are current and accurate, for small to mid-sized businesses, outsourcing accounting and bookkeeping functions can increase efficiency, profitability and the company’s long-term viability.
What does a Book Keeping really mean?
When you run your own business, no matter what size, what form of business a limited liability company, limited liability Partnership, S-Corp or a C-CORP, your financial transactions must be formally recorded. They are done so in the company’s books. And the process of doing so is called bookkeeping.
You may have heard of accountancy terms like balance sheets, profit & loss, accounts payable and receivable – they are all components and functions of bookkeeping. The rules and complexities of book keeping have changed immeasurably in last decade. The tools used to record them have evolved just as much.
But the raw essence and purpose of bookkeeping has stayed more effective and important to record and store activities accurately and honestly.
Importance of bookkeeping:
There are two basic reasons to encourage and practice good bookkeeping. The first is that the financial records contained within your
books will provide a fundamental barometer as to the underlying health of your business, more on that a bit later.
The second is that as a business you’re required by the letter of the law to keep your house in order. There are some basic financial records that you are legally obliged to keep, and report.
Few of the important key benefits of outsourcing Bookkeeping:
- Effortless in Tax planning
- Audit protection
- Expertise professional hand always at your fingertips
- Improved business decision-making efficiently
- Less stress and more sanity
- Reducing risk possibility
- Steering clear of Bookkeeping at time of Fraud & Other Issues