10 Benefits of Choosing Outsourced Bookkeeping For Small Business in USA

• Reading Time: 6 Minutes
• Published: March 16, 2021
• Last Updated: January 23, 2025

If you do not strictly keep a watch on your business finances, you can’t expect your business to excel or have sound financial health. This could be a big hindrance to your business growth process. So, what can be done? You can hire someone else to manage your business finance, who can report to you what requires to be done to improve your finances. Here outsourcing comes into play. Surprisingly, outsourcing bookkeeping services is not a new concept; it can be dated back to the 1970s. Outsourcing bookkeeping services has many benefits, especially if you own a small business. Let us look at what exactly outsourced bookkeeping is and how it benefits small businesses in the USA.

Why Choose Outsourced Bookkeeping for Small Businesses in the USA?

Employing a bookkeeper can be difficult, but they are vital for your business. They prepare financial statements for your business, handle bank account activities, analyze financial data and give insights. Today, finding a qualified and eligible individual at an affordable price is much more difficult. It is a common belief that accounting and bookkeeping must be done internally. However, it is essential to ask yourself whether you have the necessary skills and experience to do this job on your own or the capability to manage the right bookkeeping personnel you hire.

It is best to outsource your bookkeeping to an expert and leave the financial management to them. Following are some of the reasons why small businesses in the USA should choose outsourced bookkeeping services:

• Cost-saving- It’s costly to hire an in-house accountant. The cost includes not only salaries but additional overhead costs like a workstation, office space, worker care, pension programs, and other benefits. Furthermore, vacations and sick days for workers must be considered. Additionally, we can’t ignore the time and cost involved in recruiting, screening, testing, and preparation for workers. However, outsourced bookkeeping services help avoid these costs. Outsourcing services providers have a team of experts who they pay, and you don’t have to worry about the cost. By outsourcing your bookkeeping and accounting, you can also change your service level to suit your company’s seasonal requirements.
• Outsourcing bookkeeping service is an investment- Outsourced bookkeeping might be costly initially, especially when you are running a small business. However, outsourced bookkeeping services are an investment as they offer long-term benefits for your business. They save the high overhead costs of hiring an in-house bookkeeper and ensure accuracy in financial statements to avoid fines and penalties.
• Simplify your business operations- When the company expands fast, productivity is the name of the game. Performing your everyday financial duties can really eat up valuable hours of the day. Following up with unpaid invoices or manually issuing checks can be hectic. Outsourcing ensures that your outsourcing partners automate these processes, so you don’t have to think about them. An online bill payment platform like Bill.com can streamline your accounts payable and accounts receivable.
• Data security- When using outsourced bookkeeping services, there is no requirement for concern regarding data security. The outsourcing partner uses safety protocols and measures to protect your financial data. All the information is saved electronically, and access to this information is given only to authorized personnel. Apart from this, a non-disclosure agreement can avoid information leaks to a third party.
• Reliable financial records- It’s simple to fall back on balancing the books for a small or mid-sized business when bookkeeping is not performed daily. At times business owners are left with assumptions about their business financial position. Having an outsourcing partner means you don’t have an assumption but correct and up-to-date financial records. It further helps in making well-informed choices about the future. Even better, you can easily recognize and address any concerns that could negatively impact your cash flow.
• Reduce risk- Every business requires adequate internal control to avoid fraud, robbery, and fundamental human mistakes. If you have only a few people who serve multiple roles in your business, even a small mistake or error will lead to bigger chaos. This is not just problematic for you, but it could also land your business in trouble with the IRS (Internal Revenue Service). Having an outsourcing accounting services provider to manage the accounting process or just a bookkeeping service provider for bookkeeping means accurate bookkeeping and improved supervision leading to fewer or no mistakes and errors.
• Prepare better for the tax season- Failing to plan your bookkeeping process in line with your taxation time can create a problem for your business. At the time of tax filing, everything should be accurate from the start-end. Here you need help from professional service providers that provide outsourced bookkeeping services. The experts will keep track of finances continuously during the year. All of this will help you prepare well in advance and feel less stressed, and help you file your taxes smoothly and on time.
• Have proper records with payroll management- Your business’s success depends heavily on people’s satisfaction and well-being. You must look after the workers and ensure they are paid on time. Outsourcing your bookkeeping will allow you to provide your employees with correct paychecks on time and ensure that your payroll fees are kept up to date. Proper payroll records help ensure your expenses are recorded correctly in the books of accounts, and the final statements show your business’s accurate and current financial status. In fact, disorganized payroll management and untimely payroll management could lead to signs of employee burnout.
• Automation at its best- Outsourced bookkeeping service providers uses time-saving tools for bookkeeping automation software like Xero, QuickBooks, etc. It saves your business time and reduces the risks of losses in the company. Automating bookkeeping reduces human errors. Automated accounting tools provide real-time financial reports. It helps to recognize and address possible issues at an early stage.
• Concentrate more on your market development- This could be the greatest advantage in outsourcing bookkeeping services. The outsourced bookkeeping service providers will take care of the everyday bookkeeping activities, thus giving you much-needed time to concentrate more on your market development. Your business staff can focus on other productive prospects, like building a brand name and focusing on marketing strategies to grow your business.

Conclusion

Bookkeeping is the basic activity of your business’s financial management and thus must be managed diligently and with expertise. However, it is a tedious task and needs you to invest time and resources. This is the point where outsourcing proves its worth. Outsourcing accounting services or bookkeeping services saves you time and money and enhances the accuracy and reliability of financial records. Additionally, you must also be careful while choosing an outsourcing partner. The right outsourcing service provider with expert knowledge and experience helps you increase your business’s productivity and profitability.

So, if you want to outsource your bookkeeping and accounting functions, you can contact our expert and get 30 minutes of free personalized consultancy. Our team includes highly trained bookkeepers, accountants, and tax analysts who can direct you through a hassle-free experience in accounting and financial services. We provide our services at highly competitive rates without compromising on the quality of deliverables.

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