Five reasons why you should consider outsourcing your bookkeeping

Are you a business owner doing your own bookkeeping? Joe Virtue from our advisory department dives into the crucial reasons why you, as a business owner, should consider outsourcing the task to an accountant.

The latest accounting software is continually advancing, with apps and AI models making bookkeeping more and more user friendly. As a result, it has never been easier to do your own books as a small business owner. Nevertheless, there are still some real advantages to outsourcing the work to a professional. Here are just some of them:

Focus your time on what matters

The first benefit you will notice, almost immediately, is the incredible amount of time you will save. No longer will you face the stresses of managing your company accounts, the uncertainty on complex issues and the long nights working just to meet a VAT return deadline. In many cases, as a small business owner, you have complete oversight of the business, so it is important to use your time effectively. You could devote extra hours to growth, direction, stability and the daily operations of your business. Alternatively, you could aim for a better work-life balance, which in turn, may help you avoid burnout and maintain focus.

Improved reporting

With an accountant managing your bookkeeping on a regular basis, there is a great opportunity to reap the benefits of effective reporting. A good accountant will know and understand the reporting standards that are best suited to your business. With your accounts being updated regularly, you can gain valuable insights into your business from up-to-date data, allowing you to make well-informed decisions.

There are also many business owners who are great entrepreneurs, but may lack ability when it comes to numbers. It's invaluable to have an experienced accountant by your side who can communicate financial information in simple terms that someone without a financial background can interpret and understand. That way, you can gain even more value from financial reports.

Implementation of software

Regardless of your specific industry, keeping on top of your operations is important, but also difficult without the correct tools. With a vast array of software packages available and many being continuously developed, it is difficult to pinpoint which may aid with your business operations, and which will create more issues than they solve. This would usually take hours of research, a lot of trial and error and, of course, expenditure in the wrong areas.

An experienced accountant will have had lots of experience with businesses operating in different sectors, varying in size and software implementations. With that in mind, they would be able to direct you to packages perfectly suited for your business, many of which you may not have thought of. An accountant can also help you integrate any recommended software into your business, thus saving you even more time. With the correct software, many of your daily business operations would become far more manageable and scalable.

Peace of mind

Tax and legal requirements that come with accounting are ever-changing, if you complete your own bookkeeping, you will have to always educate yourself on the latest tax regulations, which in many cases can be quite complex. Not only that, but you would also have to ensure that all filing is submitted accurately and on time, which can be stressful. With an accountant managing all of this for you, you can have true peace of mind that your records are accurate, and that you are also compliant with tax and legal regulations – avoiding any potential penalties.

Adding value

There are various ways an accountant can add value to your business, from providing financial reports, to guidance on which software packages to use, but these only scratch the surface of the value a good accountant can add. If you outsource your bookkeeping, but opt for advisory services as well, your accountant will look beyond the numbers.

Whilst using up-to-date financial reports and overall knowledge of your business, your accountant can provide expert recommendations and work closely with you to formulate feasible strategies to help you achieve your financial and operational goals.

If you would like to find out more about the advantages of outsourcing your bookkeeping, please get in touch now by calling us on 0115 955 5500 or emailing enquiries@pagekirk.co.uk.