Running a successful business in San Diego is very different from owning one. You have to have a firm grip on the financial side of things if you expect the business to truly thrive. For business owners who intend to handle the bookkeeping themselves, knowledge is essential.
If you have better things to do with your time, however, hiring someone to handle the bookkeeping is the answer. You don’t need to hire a full-time bookkeeper or accountant to handle things. Outsourcing your bookkeeping to an experienced accounting service is a common choice for many small business owners.
Let’s look at some benefits for outsourcing to a San Diego bookkeeping service.
#1 You’ll Benefit from Unbiased Financial Opinions
An internal bookkeeper or accountant can become emotionally attached to the business they participate in. This can bias their opinions on financial matters. Using an external bookkeeping service removes that bias. The service’s goal is to provide you with clear vision into your business financials. They won’t tell you things are going OK when they really are in bad shape.
The bookkeeping service will do the accounting work necessary to keep the business running. They will give you the information to show your financial strengths and weaknesses.
#2 Avoiding Problems Between Partners
If your company is owned by more than one person, hiring an external bookkeeping service makes sense to avoid conflicts of interest. If one of the owners is currently handling the bookkeeping, a simple mistake could cause major problems. One partner could accuse the other of misconduct. This could put the intentions of one or both owners into question.
An external bookkeeping service avoids this type of situation altogether. It offers a non-biased source of financial information for all the owners without any question about personal intentions or biases. The accounting service will provide financial statements that are true and accurate.
#3 You Can Save Money
Keeping a grasp on the company’s financials is paramount for running a successful business. One of the key points to financial management is reducing and managing costs. Controlling wages and salaries is part of this. If you decide to hire a bookkeeper or an accountant for your business, you need to be able to cover the salary and benefits for this person.
If your business cannot absorb the cost of an internal bookkeeper, you have two choices. Have one of the owners dedicate time to sending invoices, collecting payments, processing credit sales, and running financial reports. This involves a lot of time that could be spent more productively on running the business.
The other option is to hire an external bookkeeping and accounting service. The cost of the service is usually significantly less than hiring a bookkeeper or accountant in-house. Plus, you can take it as an operating expense at the end of the year.
What Should You Look For When Hiring a Bookkeeping Service?
Here is a brief list of things to look for when hiring an external bookkeeping/accounting service:
- Look for experience in your industry
- Look for experience in similar types of businesses
- Look for solid recommendations from other customers
- Look for someone who asks the right questions about your business
- Ask for a complete price list of services and add-ons
OnTrack Financial is here to help. We are a modern bookkeeping service based in San Diego. Call us today.