How Can Outsourcing Bookkeeping Help You Increase Your Profits
September 15, 2021 | Written by: Sohail Afzal
Most business owners wonder if outsourcing bookkeeping would help their business to increase profits. Little do they know that NOT having a bookkeeper to manage your company’s financial data could be disastrous for the growth of the business.
When you have a startup, you won’t have difficulty managing the bookkeeping by yourself if you know a bit about accounting. However, once your company grows, you’d have more clients, so more business. That’s why you’d need to contact an accounting firm to outsource your bookkeeping tasks.
You don’t want to waste your time doing the financials of your company which could consume a lot of hours. You’d rather be interested in investing those hours working for the strategic goals of your business.
In this article, you’ll learn about how outsourcing can help your business grow and increase revenue.
Some of the essential things you have to perform are payroll deductions and tax filings when running a business. The CRA is strict regarding tax filing, and you have to make sure that you file all your taxes on time to avoid penalties. So you have to file your taxes on time, which can only be done if you have all your books in order. But that is a full-time job. You also have to make sure that your existing customers keep coming back while onboarding new ones. You have to update your marketing plan and keep on top of all social media platforms. These are things which would help you to generate revenue for your company and increase profits.
Hiring a full-time accountant would increase your overhead costs. Outsourcing is the best to get bookkeeping services from expert accountants and CPAs.
Reduced labour expenses
One of the major factors of outsourcing is to reduce overhead expenses. When running a small to medium-sized business, you don’t need to have a full-time accountant in your company. It would just increase your expenses. For instance, you want to have a cash flow statement of your business. If you have a full-time employed accountant, he will make it within a short period, and then he wouldn’t have anything to do. That’s why you’d be paying for more hours than is required of that accountant. Therefore, outsourcing is a smart way of maintaining your books while keeping it simple and cost-effective. You’d only have to pay for that particular service and nothing more. Hence, it would help you increase the company’s revenue, which would also increase the profit.
Most of the entrepreneurs start by doing all the office tasks by themselves. They wear multiple hats. They have to look after the HR department, operations, accounting and whatnot. At the start, it is fine to do all the tasks by yourself, but once your business grows, you have to get the things done professionally and save your time. That’s why you have to contact an accounting firm to help you out with the bookkeeping and much more.
Sohail Afzal, CPA, CMA, MBA
Sohail Afzal, (CPA, CMA, MBA) is the founder & CEO of GTA Accounting Professional Corporation. He is a highly experienced Chartered Professional Accountant and businessman himself and understands the challenges that many businesses face when it comes to cash flow management. As an experienced business consultant & tax advisor, he is helping companies grow by providing the technical, financial, and contractual information necessary for strategic decision-making.