A woman prepare to write on a pink post-it note while at her desk.

Why SMEs Should Use an Outsourced Bookkeeping Service

The last few years have been tough for small businesses in Australia and New Zealand. One study found that 63% of small businesses in Australia report being negatively affected by COVID-19. In New Zealand, 43% of small businesses said they either had used or planned to use government wage subsidies to survive. When times are uncertain and cash flow is less reliable, it’s more important than ever to stay on top of bookkeeping to grow your business

Asking a small business owner to manage their general ledger and strategise their recovery order is a tall order. If you’re running a small- to medium-size enterprise (SME),  outsourced bookkeeping service help can keep you on track. Organise your financial data and create better systems with the help of an outsourced bookkeeping team.

What Does an Outsourced Bookkeeping Service Do for SMEs?

You may be hesitant to outsource your bookkeeping service because you don’t know what an off-site expert can really do for you. Well, a lot. A qualified off-site team will become an invaluable asset. Not only can an outsourced bookkeeper handle your day-to-day bookkeeping needs, but they can provide valuable insights to drive decision making for your business.

An outsourced  bookkeeping service can free up time in your back office by tackling:

  • Bills and payments. Your bookkeeper handles accounts payable to make sure your supplier invoices are paid in a timely manner. 
  • Invoices. Your outsourced bookkeeper can also make sure you get paid, keeping up on accounts receivable, so you don’t wind up with bad debts.
  • Payroll. Your staff will always be paid on time when you have an outsourced helper streamlining your payroll. 
  • Budgeting. Are you spending too much on one area of your overheads? Let a bookkeeping expert get outside eyes on your budget. 
  • Forecasting. Once an outsourced bookkeeping service becomes familiar with your business, they can provide important forecasting information to help you plan for the future. 
  • Customer analysis. Be honest, do you know exactly who your customers are? Talented bookkeepers also know how to analyse where your biggest sales are coming from. 
  • Generate financial statements. Quarterly reports are time consuming but essential. Outsourcing your financial reporting needs means accessing important profit and loss statements, etc., without having to put them together yourself. 
  • Ongoing reconciliation. Reconciling your accounts and key balance sheet items, as part of delivering ongoing reporting and insights, can easily be handled by an experienced bookkeeper as matter of routine 
  • Prepare for tax season. You don’t want to be caught in penalties after lodging a tax return. Professional help gives you peace of mind at the end of the fiscal year. 

A bookkeeper sits at his desk and looks over his client's financials.

How an outsourced bookkeeping service can help your SME

Outsourcing your books gives you both a macro view and financial health check and helps you take some of the more micro minutiae off your plate. 

If you outsource the bookkeeping of your small to medium organisation, you can expect:

  • Saved time. Some parts of bookkeeping are time-consuming. When it comes to data entry and report running, shortcuts may lead to mistakes. Your back office has time for other matters when your reports are streamlined by outsourced assistance. 
  • An objective view. You may be too close to your business to admit when one part of it isn’t working anymore. An outsourced bookkeeper may serve as a reality check by offering a new set of eyes. 
  • Access to expertise. A company like Visory can match you with a bookkeeping team that knows your industry inside and out. As you grow, having an expert handling your reports may be more helpful than a general bookkeeper. 
  • Saved money. You may also save money on staffing when you outsource bookkeeping. You can reinvest those funds into research and development, marketing, and other aspects of your company. 
  • Better understanding of cash flow. With an in-depth analysis of your spending, you may be able to better manage your cash flow and stay in the black at the end of each month. 
  • Detailed forecasting. Bookkeeping is more than just knowing what’s in your bank account; it’s also about keeping it full. Bookkeepers who are embedded in your business, even remotely, can update you regularly on your financial health. 

When Is It Time to Outsource Your Small Business’ Bookkeeping?

If your small business is growing quickly, your bookkeeping needs are likely to be scaling quickly as well. These are a few signs that your business would benefit greatly from an outsourced service taking over your bookkeeping needs:

  • Your bookkeeping and financial recordkeeping is taking more time than you can afford
  • Your books are always out of date and in need of catching up
  • Your business isn’t taking full advantage of potential tax write-offs
  • You are struggling with tracking your cash flow
  • Your accounts receivable and payable processes aren’t running smoothly

This is by no means an exhaustive list of signs that your business could benefit from using a bookkeeping service. Visory’s team helps businesses at all stages streamline their processes so you can stay focused on growing your business.

Learn More: 6 Signs You Need to Upgrade Your Business Bookkeeping

Outsourced bookkeeping keeps robust financial reporting affordable and reliable. Visory can match you with an expert who understands your industry and grants you 24/7 access to your double-entry bookkeeping, tax records, and more. Keeping your SME nimble for whatever comes its way is a lot easier with a financial expert on your side.