Managing a small business’s cash flow is often delegated to the entrepreneur running the business. This is just one of the entrepreneur’s many plates being spun. Unfortunately, half of all small businesses close within 5 years of opening up shop. There are several causes of these failures, but one cause is an entrepreneur doing too much. One task taking up an inordinate amount of time is bookkeeping. Reconciling accounts receivable, accounts payable, billing, etc. is just too much for one person. The solution for making bookkeeping work for a small business is outsourcing.
Outsourcing provides entrepreneurs running small businesses with the one resource they can’t acquire when lost: time. Outsourcing bookkeeping frees up massive amounts of time. Every day entrepreneurs are looking in accounts, making sure money has been received, ensuring money has been paid out properly, and so much more. Imagine the time spent on the books being spent with customers and helping employees better serve customers. This is the greatest benefit of outsourcing bookkeeping – saving time.
The best bookkeepers answer questions as soon as they’re asked. Outsourcing bookkeeping stops entrepreneurs from searching through spreadsheets and gives a single point of contact. Bookkeepers do more than just log payments though. These are people who make sure the right bills go out to the right clients, they process payments quickly, and work with accountants to make sure all taxes and regulatory fees are paid on time. Outsourcing is a fixed cost for bookkeeping, but the peace of mind knowing the money is accounted for is priceless.
Outsourced bookkeepers generally require cloud-based solutions. The benefit for entrepreneurs is simple – less paper. The lack of paper means less money spent on a resource that can be used once. Furthermore, the cloud allows access from nearly anywhere. Instead of entrepreneurs keeping their bookkeeping on one computer in the office, they can access information through their mobile phone. The best part about cloud solutions are how secure they are. The cloud locks down information and at the same time, if something does happen at the physical business location, the information will not be lost.
The problem with entrepreneurs managing their own books is the information they’re getting is often flawed. Making choices about investments for scaling requires a full and complete financial picture. More often than not, entrepreneurs doing their own books make decisions with incomplete information. An outsourced bookkeeper is an expert at understanding all parts of the cash flow system. They have the skills to quickly give entrepreneurs a picture of where investments can be made, and how finances are looking in the near future. Thanks to an outsourced bookkeeper, investment decisions made by entrepreneurs are less murky. These decisions are made because the information is complete and accurate.
Having an outsourced bookkeeper is a great way to build a small business. However, bookkeeping is just one of many outsourced services small businesses require. To learn more about trusted outsourcing for bookkeeping, contact an ROI consultant by clicking here.