If you are searching for profitability gains for your business, concentrated efforts should be made to ensure reliable bookkeeping and accounting processes are established as these significantly impact the resulting accuracy of financial reports. However, bookkeeping and accounting functions are areas that require their own independent expertise. In most small to mid-sized companies, bookkeeping functions are relegated to an employee who is also responsible for other business functions and who may lack bookkeeping expertise or training. Bookkeeping becomes just an additional task to complete.
Options for effective bookkeeping
Several options exists which can help you better manage bookkeeping functions thereby ensuring more accurate financial records. Each of these depends on your company’s needs and requirements.
In-house bookkeeping: This is one of the most common forms of bookkeeping practiced by small businesses. This strategy often relies upon an existing resource within the business multitasking to complete bookkeeping tasks. This employee may even be the business owner. However, supporting a full-fledged in-house accounting department is usually the preserve of large companies which can afford dedicated resources.
Hire someone on a part-time or consultant basis: When you leverage a temporary resource to manage your business’ bookkeeping, you need to ensure that they know what needs to be accomplished. This option may be appropriate for small to mid-size businesses because there is a limited workload, which can be fulfilled with this type of arrangement.
Outsourcing to a third-party vendor: Often businesses will source a third party to manage the range of bookkeeping function. This option works very well for small to mid-size companies that do not require a dedicated, full-time resource for their limited needs. It also helps small businesses access bookkeeping expertise which they could not have afforded otherwise.
Partnering with an outsourced provider: Partnering works well for companies that want bookkeeping within their control while also benefiting from the freedom of outsourcing. In this arrangement, the partner is often considered an extension of the business resources or team.
At Analytix Solutions, we offer a free analysis of your accounting system and other business processes. If you would like to learn more about how outsourcing your bookkeeping can help improve your business’ growth and profitability, call at 781.503.9002 or email me at [email protected].
About Author: Satish Patel, Founder-CEO of Analytix Solutions, has more than two decades of experience as a CPA. He has also advised small and mid-sized businesses on diverse matters such as valuation, accounting, and finance. His experience extends to raising capital and arranging for finance from angel investors.