Why Outsource Your Bookkeeping?

The primary reasons small companies and nonprofit organizations consider outsourcing their bookkeeping are time and cost. A small business owner and nonprofit director have one thing in common. They are often times asked to wear multiple hats with limited capital.  Hiring and managing staff coupled with providing services or executing the organization’s mission is already more than a full time job. When you add to those responsibilities the necessary administrative tasks such as vendor and operations management, you are suddenly on overload.

Outsourcing bookkeeping services frees up time and resources to focus on business strategy and goals. It also allows you to tap into the resources and expertise of the outsourcing company. The opportunity to review your endeavor’s income, expenses and expansion plans with an unbiased professional can provide a view that adds significant underrated value.

At the same time, out sourcing the vital task of bookkeeping can reduce operating costs. It is easy to see how a trained quick books expert that performs these services for multiple firms is more knowledgeable and more efficient. If you have ever spent hours searching for a small number transposition error or an omission oversight, it is a logical extension to realize that someone else can probably discover and correct the issue faster. Bookkeeping requires someone that is well-organized and meticulous with a minimum of distraction. An individual with multiple responsibilities rarely enjoys the luxury of no interruptions.

Since accounting is frequently not one of a business owner or nonprofit manager’s core competencies, it may make sense, operationally and economically, to outsource all of your bookkeeping and accounting functions. That should not, however, include any treasury functions (e.g. investing, signing checks, authorizing bill payments online, executing wire transfers, etc.), which should remain completely under your control.