Why Outsourcing Bookkeeping is a Smart Business Decision
Many small business owners are often hesitant to outsource their bookkeeping needs. Outsourcing the tracking of their business income, expenses, and government filings is often viewed as an unnecessary cost. Additionally, they may be uncomfortable giving someone else access to their company’s financial information. These are both valid reasons that give small business owners’ pause, but in reality, outsourcing your bookkeeping needs is a smart business decision.
When talking to prospective bookkeeping clients, we reinforce that if someone is a good cabinet maker, that doesn’t mean that they can run a successful cabinet making business. Doing your own bookkeeping requires time, knowledge (of accounting and bookkeeping software) and requires you to be organized and have an eye for detail. Bookkeeping services have the experience to manage your books efficiently, while adhering to government filing deadlines which frees up business owners to do what they do best — service their clients. Simply put, let someone else manage your books, while you manage your business. This can be a painful lesson when the government levies penalties and interest for late filed returns.
When your business is in start-up mode, you may not need a bookkeeper initially as you can easily track your sales and expenses on an excel spreadsheet. As your business grows, so will the demands on your time and the volume of bookkeeping entries necessary to track all your business activities.
If you are in a start up situation, it is prudent to meet with an accountant or bookkeeper as they can guide you in registering your business or corporation, registering for HST, source deductions or WSIB, and provide perspective on what to expect as you get your business off the ground. They have valuable experience that can shorten the learning curve for any new business.