Why Your Business Needs Professional BookkeepingOctober 4, 2021
Does your business need professional bookkeeping? Whether you’re starting a business or taking your business to the next level, here’s what to consider.
Amortization. Depreciation. Capitalization. Reconciliation. If you run a business and don’t thoroughly understand what these terms mean, you need professional bookkeeping support. From gaining time to focus on growing your business to setting up your business to scale, trusting your books to professionals will help you take your business to the next level.
Cost vs. Price
You might think you’re saving money by doing the bookkeeping yourself or assigning it to a staff member along with their other duties. But are you? First of all, factor in the value of your (or your staff member’s) time. Unless you or your staff member are trained bookkeepers, it will take a lot longer to do the job than it would a professional.
Now think of all the other ways that additional time could be put to use to benefit the business.
A professional bookkeeper will have the education and experience not only to know how to do the work correctly from the get-go but also how to optimize your bookkeeping system for your particular business. For example, a professional bookkeeper can develop a methodical system for categorizing your transaction data in your chart of accounts (COA), saving your company time and reducing incorrect classifications.
My colleague, Jen Ellermeyer, recently optimized a nonprofit’s COA, having initially found that “there were probably 750 different items that any given transaction could be coded to. Even the staff managing the grants found it confusing.” With professional bookkeeping, your COA would be optimized and streamlined from the start.
Whatever time you’re spending on bookkeeping is time you’re not spending on billable work or business development. If you want your business to grow, you need to put time into making that happen.
A Foundation to Build On
With the right outsourced solution, you can find bookkeeping support that works today — and is scalable for tomorrow. Sure, your business may be small enough at the moment for you or a staff member to theoretically handle that responsibility. But you want to avoid that “uh-oh” moment when you realize there are literally not enough hours in the day to do the books in-house and still tend to the growing demands on your time and attention. Or that you’ve made a catastrophic mistake. The more your cash flow grows, the greater the consequences of a bookkeeping error are liable to be.
The right outsourced bookkeeping services provider can add support as necessary, including controller services, and upgrade your digital tools and other technology to boost efficiency. In other words, your bookkeeping support will grow with your business.
While “growing your business” is an obvious general goal, that growth should be definable, measurable, and systematic. Professional bookkeeping support can be invaluable in making that happen. You can establish numbers-based milestones and layout the steps needed to reach them. What will it cost to open a second location? And will you have enough cash on hand to cover the cost before the new location adds revenue?
Through professional bookkeeping and controller services, such as a regular monthly close and review of your balance sheet and P&L — as well as a more granular examination of how your business is performing in different locations, with different products or services, etc. — you will have the data you need to fine-tune your strategy.
At Supporting Strategies, our experienced, U.S.-based professionals use secure, best-of-breed technology and a proven process to provide a full suite of bookkeeping and controller services. Are you ready to learn how you can# move your business forward? Contact Supporting Strategies today.
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