1 in 5 businesses fail within the first year of operations, according to the U.S. Bureau of Labor Statistics (BLS).
Maybe they didn’t have a grasp on their numbers, didn’t identify cash flow challenges quick enough, or lost control of expenses. Whatever the reason for business failure, in many cases, the cause is linked to bad bookkeeping.
Good bookkeeping is essential to any successful business. It allows for better cash flow management and financial projections and enables data-driven decisions. Not to mention it provides an objective way for owners and other stakeholders to measure the success of the business.
Seeing these bookkeeping benefits requires attention and precision; a tall order for busy business owners juggling other tasks. This is why outsourced bookkeeping services are a highly sought-after service. Outsourcing takes the task off your plate and provides an efficient, easy solution for good bookkeeping.
Why Choose Outsourced Bookkeeping?
Here are a few of the many reasons businesses choose to outsource their bookkeeping:
Timely Financial Insights
Modern outsourced bookkeeping services deliver weekly financial insights to you and your team.
With up-to-date information, you can make data-driven decisions, trusting the numbers are correct.
Cost-Effective Solutions
Outsourcing your bookkeeping provides significant savings in comparison to hiring an in-house team.
It takes a team to master the accounting fundamentals, a steep investment for a small business. By outsourcing, you’ll get access to each of the following roles, eliminating the need to hire and manage full-time personnel:
- Staff accountants
- Senior accountants
- Controllers
Focus on Core Business Activities
Business owners have a lot on their plate, each task requiring attention and focus. Unfortunately, good bookkeeping practices have a tendency to take away from an owner’s ability to focus on what they do best, which is running their business.
This is where an outsourced upscale bookkeeper becomes even more valuable, they handle the critical but mundane work of bookkeeping and financial reporting while you, the business owner, manage core business activities.
Scalable Services
Whether you’re running a startup, an established business, or fall somewhere in between, an outsourced bookkeeper can scale as your business scales. With customized solutions and the option to add-on services as you need them, you’ll never have to worry about how to tackle your next accounting challenge.
What Should You Look For When Choosing Outsourced Bookkeeping Services?
Made the choice to work with an outsourced bookkeeping service? Don’t select a partner until you’ve done your due diligence.
Focus on these four essential areas and ensure whatever bookkeeping service provider you choose checks each box.
1. Team-Based Approach
Outsourcing your accounting means taking advantage of an entire team with a wealth of knowledge. It’s not a single bookkeeper, it’s a controller, senior accountant, and staff accountant all working together to produce the financial insights you need to run your business.
They work as a unit and ensure accountability on all levels. You, as a client, have access to all three.
2. Customizable Solutions
Make sure the bookkeeper offers services to match your specific needs and can scale their services to match your scaling business. Switching outsourced bookkeeping service providers can be a hassle, so selecting a scalable firm now will make life easier down the road.
Service customization also refers to only paying for what you need. There’s no need to pay for a bookkeeping service to manage accountant payables if you already have a strong, well-working system in place. The right bookkeeping firm will allow you to customize the services to match your exact needs.
3. Technology
Choose a bookkeeping firm that uses up-to-date technology for efficient and effective services.
Technology will streamline your financial operations, keep your bookkeeping accurate, and give you greater visibility and control. It also allows your books to be accessed from anywhere – a major bonus for busy business owners.
4. Communication
A bookkeeping service that values clear communication and offers reliable support when you need it is critical. Look for a partner, not a vendor.
While accurate financials are the ante to play the game, the real value comes from a team that can tell the story behind the numbers. The ability to help you connect the dots should be a point of emphasis.
Peer’s Approach to Outsourced Bookkeeping Services
Peace of mind and confidence with timely, reliable financials; at Peer, that’s our top priority.
Our outsourced bookkeeping services are optimized for efficiency and powered by a team-based approach. This allows us to meet our client’s needs at every stage of their journey.
To learn more about how we can help you grow, contact us for a free consultation.