Outsource These 3 Things If You're Running a Small Business
Outsource These 3 Things If You're Running a Small Business
Author: Kelly Gonsalves
Small business owners do everything under the sun to keep their business rolling along. I’ve seen one business owner who’s also the company’s social media coordinator, accountant, human resources department, and sales representative while still attending high level meetings.
I’ve seen it, and I’ve lived it. Starting my own business three years ago, I was, and in many ways still am, a one woman band. It’s the toughest, most rewarding thing I’ve ever experienced.
As Totally Booked grew, I started to realize I couldn’t do everything myself anymore. I had to decide what I was willing to let go of, and outsourced some things. Yes, I’ll admit it!
I’m fortunate enough to run my own bookkeeping business, and can keep my finances in-house, though.
For many business owners, especially those with little-to-no accounting experience, bookkeeping tasks are a great thing to outsource (a.k.a let someone else worry about).
There are specific tasks I’d recommend for outsourcing though. And, I even have some reasons why.
1. Payroll
Payroll can be both the most important and time consuming task a small business owner deals with in any given month. Keeping track of all the numbers, tax compliance, holidays, missed days, sick days, and everything else is a job and a half for anyone. Trust me.
Also, have you ever missed a payment? Has anyone ever forgotten to pay you? Sucks right? You can avoid all that with an outsourced bookkeeper or firm dedicated to you and your business’ payroll.
Alright, so what’re the direct benefits?
Cheaper: Though it generally depends on your situation, an in-house accountant is generally more expensive to pay than an outsourced bookkeeper or bookkeeping agency. On top of that, for incorrectly filed taxes, the IRS charges an average $845 penalty. 40% of small businesses make this mistake.
Safer: Speaking of mistakes, having someone personally dedicated to your payroll cuts them down almost entirely. That means no issues with the IRS, no sending the wrong check to someone, and no risk of internal tampering. Plus, bookkeeping professionals know the best software and practices to do their jobs. If you use a cheaper or less established software, you might find yourself scrambling to retrieve your employees’ personal data, or for money to pay a lawyer.
Faster: Not only are you not doing the job yourself, which is a huge plus, bookkeepers and accountants know what they’re doing. They’re experienced in payroll, and definitely won’t take as long as you would. Even if you’re fortunate enough to have an in-house accountant, they may have other things on their plate that cause delays. That’s just not something small business owners have time for.
2. Accounts Payable/Receivable
If you’re just starting or are currently running a business, you may have applied for or have received a loan. Especially if you’re running a brick-and-mortar store, it’s extremely difficult to completely finance operations out of pocket. Keeping your lenders and creditors happy and paid is very, very important. Have you seen operation repo?
Oh, and if you’re owed money? Forget about it. Like I said earlier, not being paid is really annoying. Accounts receivable is just as important. Without money, you can’t pay back the people you owe, let alone keep your doors open.
Tracking: Believe it or not, us bookkeepers are hip to new technology. With software at our disposal, such as the many apps provided in the QuickBooks Online App Store, tracking your Vendors, Contractors and Customers has never been easier. We can track how much you owe and are owed, when payments are due, and when they’ll arrive pretty easily.
Prompt Processing: Again, you don’t want anyone left thinking you’ve forgotten to pay them. Even worse, you don’t want anyone forgetting about you. Pushing your business partners to get your money to you on time takes up a lot of time. Especially if they’re particularly stubborn. If you’re the stubborn one (kidding, kidding), an outsourced bookkeeper will make sure your payees aren’t left as annoyed as you’d be.
3. Bank Reconciliation
After the payments are sent and received from partners, employees, and yourself, it’s time to make sure everything was done correctly. If you’ve come this far on your own, congratulations! You’re doing better than a lot of small business owners.
But, it’s time to meet your maker: the bank. Reconciling your credit card and banking statements at the end of each month keeps you honest and out of trouble. There are a few great reasons to outsource this important task.
No Paperwork: With all the checks and invoices that go into accounts payable, receivable and payroll, you’re gonna have a ton of paper lying around. It’s hard to keep track of, and you’re busy doing other things. At the end of the day, it’s just less stuff to keep track of.
Fix Errors Fast: God forbid any issues do come up (and trust me, they do), they’re fixed much faster when someone’s paying close attention. Things slip through the cracks much easier when you have a thousand other things on your plate. Outsourcing your banking reconciliation is the troubleshooting you need.
When outsourced to the right person or firm, these tasks might as well take care of themselves. We here at Totally Booked will save you time, money, and stress you just don’t need.