The Real Advantages of Hiring a Bookkeeping Service for Your Business

Numerous businesses have already taken that all-important leap and hired a bookkeeping service, but some business owners have the mistaken impression that a bookkeeping service is more useful for bigger enterprises. This is one misconception that some business owners make, but even if your business is small or just starting, you could well benefit from the expertise of a bookkeeper. Bookkeeping services allow you to save time; instead of focusing on your financial records and transactions and generating reports, you can focus on the growth of your business and how to attract more clients. But what else can a bookkeeping service do for you? Here are the real advantages of hiring a bookkeeping service for your business.

Why do you need one?

Perhaps the foremost question on your mind is why you need one. It’s true that you can already make use of various platforms and software for your bookkeeping requirements, allowing you to produce reports with just a few clicks, but software is only worthwhile if you have the correct figures. You should be able to monitor your business performance and to achieve this, you need visibility in real-time of your finances and a good understanding of what those figures really mean. Accurate bookkeeping is vital, but it doesn’t need to take up too much of your time every single week. As a business enterprise owner, you need to concentrate on developing your enterprise, providing your clients with an excellent service, and getting new clients – and if you enlist the services of a bookkeeping firm, you can do just that.

The real advantages 

• Provide more value to your customers 

Even if you are entirely capable of handling your bookkeeping tasks yourself, do you really want to spend precious time recording and keeping track of your financial transactions? Rather than spending a few hours each week on bookkeeping, you can instead concentrate on adding more value to the service you provide your customers. 

• Better focus and efficiency 

One of the best reasons why outsourcing your bookkeeping needs is highly recommended is that by doing so, you can help enhance your focus and efficiency. You no longer need to be distracted by your bookkeeping tasks and can delegate them to someone who is an expert – thus mitigating the risk of errors or mistakes as well.

• Improved accuracy and the management of risk

Let’s face it – you are probably not an expert when it comes to numbers and figures, and if you try to handle it yourself, then you are risking mistakes, if not fines or penalties due to inaccurate information. Bookkeeping services have highly-trained individuals who can do the work you require in half the time you need to do it yourself, and they are less likely to commit errors, too. 

Mistakes in bookkeeping are all too common, and it can result in consequences such as the over-claiming or under-claiming of VAT, which can result, in turn, in an investigation by HMRC, the above-mentioned penalties, and potential problems with cash flow. Another common mistake made by laymen is that the expenses end up being coded to the code of the balance sheet instead of the profit and loss sheet, and your profits can then be overstated, letting you make essential decisions based on figures that are inaccurate or incorrect.