Whether to outsource bookkeeping to an outside firm or not is an important decision for any small business. There are good reasons to have professional eyes look over your books regardless of the size of your organization – for one thing, filing a tax return with incorrect financial statements can result in penalties from the CRA – but there are also many day-to-day reasons to bring in an outside service, too. Here’s when you should consider outsourcing your small business’s bookkeeping tasks!
Is Your Business Growing?
One of the best times to outsource your bookkeeping is when your business starts growing. In situations like this, many small businesses seek financing or partnering with other organizations; if your small business has reached this point, you may need more frequent and sophisticated reporting that your existing resources can’t produce.
At some point in your business’s growth, you will need to hire a bookkeeping service that can provide services like tax planning, payroll taxes, HST tax returns, and corporate tax returns before they all get away from you. It’s a good idea to hire a service right from the start so they develop a good understanding of your business from the start and set you up for growth.
They’re also great for gaining some outside perspective as your business changes. An outside bookkeeper can give you an objective view of how to manage operations more efficiently and control your budget. They can also show you different ways to cut costs, give you new insights on your spending, and highlight other tax angles about which you may not know!
Do You Need To Modernize Your Bookkeeping Methods?
In-house bookkeepers and DIYers can be creatures of habit who resist newer, more efficient programs that are common in many bookkeeping and accounting firms these days. But gone are the days of shuffling through papers haphazardly shoved in a shoebox. Most receipts, invoices, and other crucial financial documents are coming digitally, and they’re coming faster than you can manage.
Outsourcing your bookkeeping services means you get access to the wide array of services performed on some of the most accurate, efficient programs. This access reduces and eliminates the most time-consuming, mind-numbing jobs related to taxes and payments!
Do You Need More Time To Run Your Business?
Most small business owners don’t need a full-time bookkeeper to manage the books. This means they give it to an employee to do on top of their regular work, or the owner does it. This can mean not enough attention is being spent on the books and the rest of your business.
The time you currently spend on maintaining the books is one of the main concerns when weighing whether to bring in outside help. Hiring a bookkeeper frees up more of your time, letting you and your employees focus on the business. You won’t have to worry about organizing your books or accounts, especially at tax time!