By Analytix Editorial Team
Many small business owners find bookkeeping time-consuming and intimidating. In fact, many bootstrapped startups prefer to cut costs using shortcuts like do-it-yourself accounting.
DIY Bookkeeping Downsides
According to a Clutch survey of 302 small businesses , almost half of small businesses (45%) employ neither an accountant nor a bookkeeper. Over time, as the company grows, it becomes a challenge for business owners to manage their business transactions while also trying to manage their business. According to a study by SurePayroll, cash flow and taxes are the two biggest concerns of America’s small businesses. There are low-cost, high-value alternatives available which are viable options. One is hiring a dedicated bookkeeping service.
Bookkeeping Services Upsides
Hiring a bookkeeping service provider can help small business owners overcome the following issues:
Through remote services, you hire CPAs to handle your books, payroll, and tax compliance. You are not just getting the basics, but a team of experienced accountants and bookkeepers dedicated to providing accurate and up-to-date bookkeeping. In addition, outsourced CPAs can use cloud-based solutions and accounting portals for better management of your accounting and bookkeeping functions.
Bookkeeping can cause a lot of stress and anxiety to business owners. Using a bookkeeping service of vetted, qualified professionals not only ensures that it is done efficiently, it also relieves stress. Studies indicate that a company can save approximately 40% of operational costs by outsourcing. Also, outsourcing provides businesses with access to the secure, technological platforms used by larger companies without the need to invest or worry about the associated information security requirements.
Small business owners often prefer DIY bookkeeping., but handling books with little or no experience makes the process less productive. Do-it-yourself solutions waste critical time that could have been spent on revenue-generating activities. Leveraging the advanced technical expertise of an remote bookkeeping service provider allows for gains in efficiency. You not only save time, you focus on growing your business.
Bookkeeping service providers can help small business owners take advantage of the latest technology tools to automate A/R, payroll, cash flow, and more. With automated processes, RPAs and a cloud-based accounting portal, you have easy access to on-demand reports. This improves flexibility, allows you to make timely decisions, and helps to identify risks and opportunities as well.
Most small business owners do not have a proactive approach to taxes. Tax seasons can be difficult, often resulting in mistakes or overpayment. Outsourced bookkeeping services provides a team of experts you can trust for accurate, up-to-date, and audit-ready financials. The team ensures that financial statements comply with local and federal laws and regulations. In addition, you get access to CPAs for advice on quarterly tax requirements, annual tax filings, financial planning, and forecasting.
Your business may still be growing, but harnessing the power of modern accounting processes is still key to financial success. Outsourcing can help a small business save time and money, and also eliminate stress. Timely, cost-effective, scalable solutions from Analytix translate to business growth for your company. Analytix is ISO 27001 compliant and offers a complete range of accounting and bookkeeping services and efficiency tools that give your small business a competitive edge.