Accounting is a crucial function for any business small or large. If you start a business or are operating a small business you must have a clear picture of your day to day finances, monthly financial position and annual accounts. However, individual entrepreneurs and small businesses run as one man shows can rarely afford to hire top notch accountants. This is where bookkeeping outsourcing can benefit startups and small business owners.
What outsourced bookkeeping involves
- Every startup and small business must maintain detailed records of all financial transactions on a daily basis. This can cover the entire range of financial activities like
Invoice raised and accounted for under proper heads - Receipts from buyers.
- Maintaining records of invoices from suppliers, payments and maintaining their ledgers.
- Accounts receivables
- Accounts payable
- Sundry debtors and creditors
- Banking
- Printouts of statements per week or per month or even on a daily basis as may be needed to know how the business stands in regard to cash flow.
There are other accounting functions too that extend beyond bookkeeping such as balance sheet and profit & loss preparation as well as taxation and analysis that every startup and business needs but which may not be covered in basic bookkeeping. However, outsourced bookkeeping services may also offer accounting too if clients desire it. By outsourcing bookkeeping to competent service providers you, as a small businessman or startup, gain untold benefits.
Benefits of outsourced bookkeeping services
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- Your financial records must be in order to facilitate periodic tax filing and other statutory compliances. You cannot leave it for the last moment. Outsourced bookkeeping services make sure your financial records are kept up to date each day.
- You can view reports to see just where you stand in matters of outstanding payments and liabilities.
You get a true picture of your cash flow and profits as well as expenses so you can take appropriate action. You know your financial health. - You can focus on more vital aspects of your business like generating sales and roping in new customers instead of spending that time on accounting and bookkeeping.
- When it is time for statutory compliances, your books are in order and you have no worries.
You can plan for the future when you know your financial status.
For outsourced bookkeeping to be a success for you, it is vital to choose a service provider who can offer basic bookkeeping and also accounting and financial analysis as may be needed. Cost may be important but you save because you use time to generate more revenues, but it is important to ensure continuity by choosing a bookkeeping service that will always be by your side down the years.
