Small business owners face risks and challenges every day to compete and survive in this competitive market. To mitigate risks and overcome challenges they need to take proactive measures to stay strong and survive. Doing back office works such as bookkeeping, compliance reporting, reconciling bank/credit cards, customers and vendors accounts, calculating GST/HST, payroll and payroll taxes, etc. take away so much of valuable time of the small business owners that s/he could otherwise utilize for growing his/her core business. Small business owners should consider following reasons why they need to outsource bookkeeping services on regular basis:
- Free up more time for planning and doing core business: We have 24 hours a day to do all tasks by balancing work, family and social affairs. Time is essentially more crucial for small business owners who have to take every day a lot of responsibility including risk of profit or loss. Back office works take away much more time which could otherwise be outsourced from any professional bookkeeper or accountant. They can finish work much faster and accurately because they do it every day for many of their clients. Outsourcing bookkeeping service will free up huge time of a small business owner, which s/he can easily utilize to plan for, to look for more customers, to engage in sales and marketing events, to create a regular stream of revenue source by creating repeat and loyal customer base.
- Get the accurate picture on time to take decisions for success: Bookkeeper or accountant maintain books of accounts following a proper chart of accounts and they can produce necessary financial reports to help small business owners take right business decisions for success at right time. Such financial reports and analysis may include balance sheet to see the status of business assets, liabilities and capital; income statement to see how business is performing; cash flow statement to see at what activities money comes in and goes out of the business; ratio analysis to see how many days money is lying with customers or how many days it takes to liquidate inventory or how quick money is paid out to vendors, etc.
- Stay free from anxiety due to non-compliance: Small businesses need to comply with many tax and non-tax filing requirements. These include GST/HST return, WSIB, Employer Health Tax (EHT), business or corporate tax return, corporate return (for Federal Corporation). Accountant / Bookkeeper can help them in complying with all these requirements in time respecting filing deadlines and let them stay free of anxiety. Timely actions can easily avoid penalty and interest usually levied upon when non-compliance occurs.
- Save money on payroll and hiring: Hiring bookkeeper/accountant in-house may seem to be beneficial to small businesses having a substantial amount of transactions, but this will rather increase the cost of maintaining an in-house setup such as recruitment, payroll, and benefits, space and utilities, layoffs, etc. Instead of maintaining in-house setup small business owners can still save a lot of money by outsourcing service of bookkeeper /accountant who can maintain books of accounts regardless of the volume of transactions using online software such as QuickBooks, Sage One, Xero, FreshBooks, Waveapps.
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