Small business owners often spin multiple plates to keep their businesses growing. But as the business thrives, bookkeeping can be a time-consuming and more complex task that often gets put to the back of the to-do list.
However, every small business owner needs financial information and insights to run their business successfully. Therefore, outsourcing your bookkeeping can be a quick win to save time and give you the information you need to succeed.
Outsourcing your bookkeeping saves time, allowing you to focus on business growth while ensuring accurate and up-to-date data. An outsourced finance department is scalable and cost-effective, offering expertise and additional services like tax advice and cash flow management.
It is important that business owners file their finances using HMRC-recognised software. The minimum cloud accounting software stack that outsourced bookkeeping functions should offer is Xero and Dext. These online accounting systems enable businesses to have visibility over their financial data.
When is the right time for business owners to outsource their bookkeeping?
No business owner should be doing their own bookkeeping. Outsourcing bookkeeping services allows small business owners the opportunity to focus on business growth.
As the business grows, outsourcing accounting and bookkeeping functions can bring you a wealth of business expertise and financial reports to make informed decisions.
What are the benefits of outsourcing bookkeeping services?
While outsourced bookkeeping has many benefits, the time you can save from getting a professional on board can make it incredibly cost-effective.
Not only is processing sensitive financial information a time-consuming task but managing in-house staff and trying to produce the financial reports you need can also lead to a vortex of lost time trying to complete tasks that are outside your area of expertise.
Outsourced bookkeeping and accounting services can bring financial expertise, allowing you to make informed business decisions. Their specialist knowledge can often surpass a full-time employee’s, enhancing your business’s financial management.
It can save money in a number of ways:
- Having up-to-date financial records means you are making business decisions earlier; for example, if gross margins drop, it will be spotted sooner, and action can be taken earlier.
- Time can be focussed on delivering business growth rather than on bookkeeping tasks, and the cost of the outsourced bookkeeper far outweighs the additional profits generated through business growth.
- The cost of outsourced bookkeeping services can also be much less than an in-house accounting department, both from salary costs and the cost of office space.
Outsourced bookkeeping services use technology to automate accounting tasks, providing software and tools for smoother implementation. Their experience with these tools allows for seamless integration and training.
Using professional bookkeepers also leads to a reduction in errors. Bookkeeping needs to be completed by competent professionals that undertake bookkeeping tasks accurately, as mistakes can be both costly and time-consuming to correct.
How do you find a good bookkeeper?
Many businesses provide bookkeeping service providers, but not all have the core competencies to be able to deliver timely and accurate financial reports.
At Spotlight Accounting, we recommend working with accounting service providers with a financial training background. Using outsourced bookkeepers that do not bring the expertise and knowledge you need can be a costly experience.
Most businesses will work off recommendations, but it is important that you choose an outsourced bookkeeping service that can deliver what your business needs and that you understand these needs.
The requirements of a business that just needs bank reconciliations are different to a company that needs a full outsourced bookkeeping and accounting service.
This should include the following:
- Monthly management accounts and financial reports, including analysis of profit margins
- Cash flow management
- Forecasting and budget reporting
- Carrying out the billing and collection process
- Reconciling balance sheets, including journaling payroll costs
- Monthly or quarterly momentum meetings
Outsource your bookkeeping to Spotlight Accounting today
At Spotlight Accounting, our experienced team provide bookkeeping services that can deliver accurate, up-to-date and timely information.
Each client has a dedicated team member that can deliver a personalised range of services, from quarterly bank reconciliations right through to a full outsourced finance function through to our Spotlight On You service.
All bookkeeping clients gain access to Xero and Dext as a minimum, and we can recommend apps that integrate with Xero to help automate the accounting process as much as possible.
Whilst we are an accounting firm, we don’t just churn out financial statements and provide tax preparation services and tax returns; we work with our clients to give them the support and information they need to grow.
Frequently asked questions about the outsourced bookkeeping
To find out more about how our outsourced bookkeeping and accounting services could assist you, contact us today!
What financial data does a bookkeeper need?
A bookkeeper will need to process the main accounting records. These are:
- Sales invoices
- Purchase invoices and receipts
- Bank statements
- Payroll costs
- Loan agreements
Can bookkeeping be done with accounting software?
Yes, we would only recommend using accounting software. At Spotlight, all our outsourced bookkeeping is processed using Xero and Dext, which automates all those listed from 1 to 3 above. Our in-house payroll software can also automate payroll costs effortlessly.
What other accounting services can be outsourced?
Other accounting services that can be outsourced are:
- Monthly management accounts and financial reports
- VAT returns
- CIS Returns
- Cashflow management
- Supplier payments
- Forecasts and budgets
- Financial Director services, including quarterly momentum meetings
Most business owners are time-poor and need up-to-date and accurate financial reports to enable them to achieve business growth.
Outsourcing accounting, bookkeeping, and other tasks can be a quick win to free up time, save money and get the information you need to flourish. Get in touch with our bookkeeping experts today!
To learn more about the importance of keeping on top of your finances, check out our blogs here: