Five Ways Outsourced Bookkeeping Saves You Money

If you have ever read Stretch: Unlock the Power of Less – and Achieve More Than You Ever Imagined by Scott Sonenshein, you know that buying all the best gadgets does not necessarily lead to more profits. Knowing where to invest your money is synonymous with being a good business person. We would caution, however, that trying to cut costs on bookkeeping may in fact hurt your business in the long run and here is why.
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#1 : Not completely understanding your costs:
It is quite easy to nickel and dime yourself to death. We have had a few cases where the client did not understand how much money he was pulling out of their business because they lent their company money and kept mental IOU’s. In turn, they paid personal expenses through the business account. It was a real puzzle to figure out what was what at year end and they never knew why the business was not profitable.

#2: Cash Flow Woes:
Cash Flow issues is more common with seasonal businesses because it is easy to get swept up in the busy season and forget to put money away for the rainy season. However, all types of businesses can experience gaps in cash flow. This is why an experienced accounting provider can help you actively manage your cash flow and implement strategies to bridge the gaps when cash may not be as abundant.

#3: Profit Sabotages:
We have seen many different types of profit sabotages. They can come in the way of expensive or time-vampire clients. Your accounting provider can help you with your price strategies so your services or products remain profitable.

#4: Ignoring Your Accounts Receivables:
Any business person can get wrapped up in the day-to-day tasks and forget to keep an eye on who still owes you from three months ago. Shortening your turn around time on your receivables does improve your cash flow and, in lots of cases, saved a business from going under.

#5: Penalties for Non-Compliance
Last, but certainly not least on our list, are penalties paid for non-compliance. We know tons of businesses who have gotten themselves in trouble because they delayed filing for whatever reason. Delaying and avoiding has a snowball effect. A professional is there to keep you compliant and accountable.

Have more questions? We would love to chat.