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Benefits of Outsourcing Your Bookkeeping

Bookkeeping is an essential building block for any successful business venture. Unfortunately, most small business owners are so preoccupied with finding customers, managing day to day operations, and dealing with cash flow issues, they neglect bookkeeping until it causes serious repercussions. These repercussions include: incorrectly paid taxes, overspending, payroll mistakes, employee theft and even complete failure of the business.

We recommend companies with 1 to 15 employees outsource their bookkeeping and here are our top reasons why it can be so advantageous

Access to Experts - Bookkeeping companies typically employ professionals who are trained and experienced in the field of business, accounting, bookkeeping or finance. As a result, these professionals can make proactive recommendations, identify errors, and perform necessary duties much faster and skillfully than an in-house bookkeeper. Therefore, improved efficiency and productivity become one of the most valuable results of outsourced bookkeeping. So what areas of bookkeeping get frequently outsourced? They include bank reconciliation, billing, invoicing, payroll, preparation of financial reports, project work during reorganization, financial analysis and sometimes collections.

Reduce Costs - Transferring your bookkeeping duties to a professional company, businesses can realize substantial financial advantages such as reduction in payroll taxes, insurance, medical benefits, sick leave, vacation, etc. On the average a bookkeeping employee is 3 times more expensive than a bookkeeping company.

Avoid employee turnover headaches - Employees come and go and with it comes the hiring and training process. Interviewing and training can take too much time, which can be better spent on company's core activities. Generally, bookkeeping companies hire and train their own bookkeepers so the business owner is relieved of the burden and expense of dealing with departing and incoming employees.

Ensure uninterrupted work flow - A bookkeeping company has enough bookkeepers who can substitute for one another without having to interrupt a business's work flow, which is what frequently occurs when an employee quits or goes on vacation.

Maximize efficiency by focusing on core activities - This benefit is especially important for new or young companies. Business owners can spend their time and resources on income producing activities and increasing profits when relieved of the burden of doing their own bookkeeping.

Reliability and Trustworthiness - In some regions like NY or NJ bookkeeping companies have so much competition that the one way they can differentiate themselves from each other is by offering top quality, dependable, service. Professional bookkeeping companies generally carry business insurance which should offer their clients an added piece of mind.

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How to Make A Career in Bookkeeping

When it comes to any business, regardless of size, there is a law that indicates that it is mandatory to have financial record bookkeeping. In bookkeeping, a business will need to record all their financial transactions, whether it would be manually recorded into ledgers or into a computer software. If you enjoy numbers and keeping figures balances, a career in bookkeeping can be right for you.

Bookkeeping is indeed a growing profession as every business requires them. There is never the lack of job. In bookkeeping, it is more than just adding figures up; the figures also tells a person if a business is doing well or not, and it serves as a guide to help businesses keep check of their costs or make sure they are in line with their budget. In fact, financial record bookkeeping can save a business, and this can come as an exciting thing for the bookkeeper.

Bookkeeping was created more than five hundred years ago by a Cisterian monk named Luca Pacioli. He had created the basic system of double entry bookkeeping, which is still used today worldwide. Since bookkeeping systems are adopted all over the world, a person can find a career in bookkeeping wherever they are at.

For one who is interested in becoming a bookkeeper, they will need to attain the education for it plus its certification. Although the education is not necessary as some people do pick it up along the way during another career, having an education in bookkeeping adds credibility. Once they attain the education for it, they can easily apply for a bookkeeping job at a small firm. To get the certification, they will need to have worked for at least two years and pass a national exam. Then, they will be able to venture into any specialization they want. To add on, they are responsible of continuing their education every three years to update their certification.

A bookkeeper typically earns between $20 and $50 hourly, although some charge companies at a flat rate between $200 and $300 monthly. Most bookkeepers like to specialize in certain bookkeeping because this enables them to charge more.