It has been one of those weeks this…
When it comes to Bookkeeping, what do you think of? How can accurate, timely bookkeeping during the financial year help save you time and money during the year and at year end? How can outsourcing this save you money and gain valuable time you ask?
Well, if you work out how much time it takes you daily, weekly, monthly to do your financials, then multiply this by your hourly charge out rate, how much time could you be gaining by putting this into your business instead if on it? Now, times this by my hourly rate and you will see how much money you could save in your business. It will most often take me less time as well.
This accuracy and time you gain will also at year end come back and save you time and money with your accountant when filing your returns. How? If your accounts are accurate, then there is less for your accountant to ‘fix’ and less charges for filing. There is more that they can then help you with to build your business and again help you gain time and money.
So, it’s win win.
Owning your own business comes with some of the most amazing opportunities but also some huge responsibilities. Taking on all of the tasks yourself can often be overwhelming. If you are looking into accounting, bookkeeping or administration options, outsourcing can be a good fit for your business.
Running a successful service or supply based business can come with a large client database. Some clients may call on your on a regular basis, and some may only require your services/products at irregular times depending on the service/products you supply. This can make it difficult for you to keep track of your cashflow and monies outstanding. As your business has grows, this task does too, and can at times be an arduous one to tackle. The task of keeping up to date with invoices and accounts receivable will grow as your business grows and will take up more and more of your time. Outsourcing this time consuming task will make sure that your cashflow is coming in on a regular basis and nothing falls between the cracks.
As well as having multiple customers, you are likely to have multiple suppliers also. It is often a nightmare for many business owners to keep track of which supplier has been paid and when, matching statements to invoices at month end and reconciling to payments. How often have you paid a supplier more than once? You will be surprised how often this happens and how time consuming it is to get those funds back.
I’ve had clients previously pay the same invoices twice, which is not only a hassle for the person paid twice because they have to repay the money, but it is risky for them as not all suppliers are honest! It’s best to be totally organised with your accounts payable and pay them on the 20th of the month (unless a earlier pay by date is set) so that your suppliers know when they’re going to be paid and you know when you’re going to pay them. Research shows that the most successful businesses pay their bills on time!
Running a successful business often means hiring staff. If you are likely to hire staff, you may have fulltime, part-time, casual, salaried employees. This makes the process of accounting and payroll often complicated and time consuming. Outsourcing this task can be a good fit for many busy businesses, meaning you can have peace of mind knowing that as your business needs change, this will be handled for you without any issues, late nights or stress over payroll, PAYE issues. All filing, PAYE is handled for you as well.
So, in summing up, the challenges faced by most small to medium sized businesses today include a lack of time and knowing where to start to get help when needed. Don’t let running your business get in the way of you being able to see the real benefit of outsourcing tasks that will allow you to focus on what is important to you in your business. Outsourcing these tasks to me will help increase your overall productivity, allowing you to work in your business and in turn enabling you to grow your business.