Top 10 Reasons to Outsource Your Bookkeeping
Many small business owners do their own bookkeeping to save money or maintain control over their finances, but could that be hurting your business? This can be a costly mistake in additional taxes paid, missed filing deadlines, inaccurate reporting, poor tax planning, penalties, etc. According to the Wealth Knowledge Center, you should outsource what you don't enjoy, or what someone else can do better. Check out these top 10 reasons to outsource your bookkeeping:
1. Time. If you are spending time doing your books when you COULD be providing goods or services to customers (generating revenue), then it's time to outsource.
2. Money. If you lose money because of math errors, or you just don't know what you are doing and it costs you money (fines, penalties, lost refunds, etc.) it's time to outsource.
3. Audits. If you've ever been audited, it's time to outsource.
4. Software. If you don't have - or know how to use - bookkeeping software, it's time to outsource your bookkeeping.
5. Getting Behind. If you are more than a month behind on your books, it's time to outsource your bookkeeping.
6. Arms Length Transactions. If you are too close to the subject matter, and need someone with perspective to tell you what you can legally claim as a business expense, then it's time to outsource your bookkeeping.
7. Financial Statements. Bank Loans, investors, & government agencies may ask for copies of your financial statements. Are you able & prepared to produce them? If not, it's time to outsource your bookkeeping.
8. Trends. A good set of books will allow you to see trends in year over year sales, revenues, etc. Do you have that? Is that important to you? If so, you may need to oursource your bookkeeping.
9. Employees. If you have employees, it is time to outsource to a bookkeeper who can also handle your payroll.
10. Tax Planning. It's TERRIFIC that you know how to make money, but do you know how to keep it? If not, it's time to outsource your bookkeeping.
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