How outsourced bookkeeping can help your architecture firm

Professional services organisations have a lot to keep track of. Billable hours, employee bonuses, and accounts receivable are just the beginning. Bookkeeping for architects is a big job. Many firms assume they need to hire someone full-time to manage their books. But there may be a better alternative.

Architecture firms can outsource their bookkeeping to a dedicated team that runs the whole finance function and is ready to hit the ground running. Partner with someone who knows about architecture firms’ unique needs and can nail a balance sheet to boot.

Read on to learn more about how outsourced bookkeeping can help your firm keep your reports accurate and current.

How outsourcing bookkeeping can benefit architecture firms

You want to keep your financial records ready for inspection, whether by the ATO, your bank or a potential buyer. Why pour hours of your leaders’ time into this task when you can outsource it?

Advancing your bookkeeping strategy is a whole lot easier if you have a dedicated bookkeeper on call. This helps your human resources staff remain dedicated to hiring and company culture, leaving payroll to your financial team. Plus, your executives never have to fret about reconciling bank accounts or tracking down late invoices.

Here are some of the reasons an outsourced team with experience with businesses like yours can change your entire financial picture for the better.

Outsourcing your books may lead to faster payments

Is there anything worse than phoning your clients again and again to ask for a payment? It’s awkward and frustrating. As an architecture firm, you’re likely billing by project. Fees billed against project stages or progress need to be invoiced on time and collected. The longer you spend chasing money, the more time you lose from paid work.

An outsourced accounts receivable team can streamline the payment process to make it easier for your clients to pay. They may also send out routine reminders that encourage your clients to submit payment.

An experienced bookkeeper will also be on top of your team’s time tracking, so that each project is billed the correct amount. Regular time-sheet and WIP reviews help your team catch billing mistakes early.

Getting help lets you focus on your business

You may be spending more time and resources on your finances than you realise. As your firm grows, doing your own books becomes harder to sustain, and every hour a director spends on reconciliations, payroll and BAS preparation is an hour not spent on design work or winning projects.

Using virtual bookkeeping keeps your firm financially healthy

Understanding your cash flow keeps you in the loop about your overall financial health. If your books are months behind, you may not see a cash shortfall until it arrives. Up-to-date books let you see project margins, work in progress that hasn’t been billed yet, and what clients owe, while there is still time to act.

Know your numbers to maintain your architecture business

There are many reasons for insolvency in any business, but cash flow comes up again and again. In ASIC’s corporate insolvency statistics for 2022–23, inadequate cash flow or high cash use was the most commonly reported cause of company failure.

In other words, if an architecture firm has high spending and not enough client money coming in, it can get into trouble even with a full pipeline of work. Up-to-date bookkeeping helps you see when you’re spending too much. Visory Insights, with a Business Performance Partner, turns those numbers into decisions about how to get back on track.

Knowing your numbers allows you to improve your business practices and make smarter investments.

The final word

Bookkeeping for architects is a specialised practice. If you outsource your financial needs to someone familiar with project-based accounting in the professional services industry, you’re a step ahead of other firms. Book a discovery call to talk it through.

Learn more about Visory’s bookkeeping for professional services businesses.