Accountants are an essential part of any growing business. Not only can a good accountant or bookkeeper keep your balance sheets balanced, but they also help you scale up by taking a myriad of essential tasks off your plate. These tasks include: helping you create your budget and accounting policies, preparing financial statements for stakeholders and the government, keeping track of operating costs, maintaining accounting systems, and preparing tax returns.
But how do you build a solid accounting team? Even for a medium to large business, the benefits of outsourcing your bookkeeping can’t be ignored. An outsourced finance team can handle everything from your itemised general ledger to your payroll. You get the help of an accounting pro without needing to hire a full-time staff member. Outsourcing often frees up money and time for innovation and product/services expansion, which helps you scale seamlessly.
Here are five benefits of outsourcing your bookkeeping we think you should explore as your business grows.
Outsourcing bookkeeping saves money that can be reinvested
As we explained in our guide to outsource bookkeeping, the average salary for a bookkeeper in Australia is almost $70,000 per year and in New Zealand around $68,000 (NZD) per year. Meanwhile, you might be able to get outsourced bookkeeping for as little as $1,000 per month. Imagine how much money you save if you have access to an entire outsourced team instead of hiring in-house bookkeeping experts. That’s a lot of money left for other essential tasks.
With the money you save from outsourced accounting work, you can reinvest in your company’s other departments. This could mean increased product development, a bigger marketing budget, and other key expenses you need to grow your business. Not only can outsourcing save you money now, but it can set you up for future success.
Outsourcing bookkeeping is scalable
The right outsourced bookkeeping team can scale with you. What does that mean? As your business gets bigger, your outsourced team can grow with you. A company like Visory can tweak your financial team as needed. That means adding new members to your team with a specific speciality, creating redundancies when necessary, and allowing you to grow your business without pausing to hire a new full-time employee.
In addition to adding new virtual team members to your business as you grow, the benefits of outsourcing your bookkeeping include assigning additional functions and responsibilities. Some of the things an outsourced team can do for you as you grow larger include:
- Scaling up back office processes such as payroll and accounts payable that drive your business forward
- Take on additional financial reports, such as quarterly reports or trial balance briefs
- Analysing your company’s financial strengths and weaknesses so you can make informed decisions that improve your performance
- Make accurate forecasts about the future of your business
Outsourced bookkeeping can keep you compliant
Outsourced finance professionals can also help keep you compliant. You don’t have to worry about chaos in your internal financing when your internal financial experts are on the case. Whether you’re reporting to the Australian Taxation Office (ATO), the Australian Securities and Investments Commission (ASIC), New Zealand Companies Office, or New Zealand Inland Revenue — you won’t be caught breaking the rules with an expert who promotes good practices. Your remote bookkeeper can also stay on top of your Business Activity Statement (BAS) schedule. Staying up to date on day-to-day data entry and regular book balancing is a lot easier with a robust finance team.
Outsourced bookkeeping and accounting can help you obtain additional funding
Want to obtain additional funding? You better hope your books are in order! Or, hire an expert team of financial professionals to double-check every figure. As you scale up, potential stakeholders will look for specific financial records. These may include:
- Historical data about your company’s growth, including income statements and balance sheets
- Projected financial figures that include projected cash flow and capital expenditure budgets
Outsourcing can relieve the burden on your management team
When you outsource your financial reporting, you ease the entire management team’s overall burden. No one will have to drop other work to process payroll or vet potential tax accountants. The company’s leadership can remain focused on your business’s growth and innovation. Outsourcing bookkeeping allows you to retain accurate internal financial data, so informed business decisions can still be made, but management is free from the mundane day-to-day reporting that may slow down growth in the long run.
The benefits of outsourcing your bookkeeping include freeing up time and money, easing the burden on executives, and scaling up faster. If you need a team on your side, consider Visory. We can pair you with a bookkeeping team that is specialised in your field and ready to get to work today.