1 – Spend More Time on Your Business:
People usually set up their own business because they are passionate about, and skilled in, the area that their service or product provides. However, the nature of owning a business means you are dragged away from such activity by the mundane tasks required by all business owners, especially the financials. After the first hurdle of raising revenue for your new venture comes the pressure of money management, budgets, expenses, etc. In addition, new businesses don’t usually have the capital to take on full time finance managers and so find themselves taking on this role. This is usually new territory for many business owners, and in the absence of a financial manager, outsourcing your bookkeeping can save you valuable time that you can put back into your business.
2 – Foster Your Business by Planning and Setting Goals:
To get the most out of your business you must have a clear plan for the future and set goals accordingly. Having up-to-date financial statements allows you to gauge how lofty or realistic your goals are. Any effective planning is made in conjunction with good knowledge of the companies finances.
3 – Do Your Bookkeeping Online:
Online bookkeeping allows business owners instant access to their records, from any computer via the internet. It reduces stress as your records and reports are available at any time. This also allows to you deal remotely with your accountant, over the phone, freeing up your time to concentrate on your business.
4 – Get Accurate Figures:
These are essential to keep the business on the right track. Online tools eliminate the margin of error and also the time spent rechecking calculations. Even if you are comfortable with the addition, good account preparation will involve manipulation of the data that an accountant would normally perform; this can be done with online bookkeeping too.
5 – Enriched Financial Reports:
You need to keep meticulous records of all transactions, invoices and expenses to calculate VAT and tax owed. Online software can carry out many accounting functions for you such as automatically calculating VAT and profit. If you are taking the time to input the data manually, it surely is of more benefit to input it into a system that can do calculations and allow you to understand outcomes rather than using traditional ledgers which require you to get the calculator out and do the math yourself. Online accounting software gives you accurate financial reports on a monthly basis.
6 – Control Cash Flow:
Cash flow is lifeline of your business. You need to be on top of your invoices and payables to keep cash flow and your business running. It is especially important to keep on top of your debtors. It is not always an enjoyable task but it can be made easier by creating invoices online via your online accounting system and scheduling when they are sent out. This makes it easier to follow up on them, if necessary.
7 – Save on Staff:
A full time finance manager will require an annual salary. In addition, they are entitled to four weeks holiday pay as well as other employment rights. Outsourcing of your bookkeeping means you do not need to take on staff. An outsourced bookkeeper is trained in this area and can complete tasks in a lot less time than your staff.
8 – Efficient Time Management:
Effective bookkeeping requires good time management. You need to set times out to do payroll, chase debtors and pay suppliers. Not keeping on top of tasks can lead to fines or losing suppliers. Online software can schedule all these tasks so that nothing is left to chance.
9 – Sync Online Tools:
Make your accounting package work even harder for you by connecting it to other online software. For example, customer relationship management (CRM) packages collect data about business customers and prospects for marketing purposes. Syncing this with online accounting software can give a more refined look at your dealings with clients.
Businesses that avail of e-commerce to sell their products on their websites can also link this facility to their accounting software so that transactions automatically appear in the online accounts.
10 – Save on Annual Financial Reporting:
Online packages that keep on top of your monthly reports can negate much of the stress and expense of filing annual reports at the end of your financial year. It can lead to a real saving in accountancy fees at the end of the year.