Bookkeeping refers to the organizing, storing and accessing the financial information of a company that helps in making the day to day operations of the business much easier. It also helps to prepare tax returns and other reports to the manager.
Accounting – An accountant’s job is to minimize errors caused while recording a large number of activities that the business engages in a particular period. An accountant prepares reports based on the bookkeeping records. An accountant has to measure profit, which is a difficult task to do. This report used to measure profit can be obtained from the bookkeeper’s records.
Benefits of bookkeeping & accounting
- Helps you to maintain a budget
It is a major issue of every business as it is easy to plan and very difficult to control and maintain.
It plays a very vital role as it helps you to budget and maintains the income and expenses in an organized way, also it creates a financial roadmap to your business where it is easier to review your financial resources and expenses.
With a budget, you can plan the future income that would help you cover your expenses.
It helps you on the analysis of your financial records i.e your inflow and outflow of the business. It is used by business owners to analyze business performance. which indirectly helps you to know the strength and weakness of the company where you can start to work or focus on improving the weakness
- Track your profits and growth
It helps in tracking your growth accurately and also understanding on your business cycles to compare the results over the period of time.
- Unbiased opinion
External bookkeepers can give you unbiased opinions regarding your businesses growth. The problem with an internal bookkeeper is that they usually get emotionally involved in the business. External bookkeepers are capable of giving positive and negative feedback which are valuable information for the growth of the business.
- Provides a clear vision of your Business
It helps you in providing the detailed financial statements of the company such as Balance sheet, Profit & loss, Income statement, Cash flow. which helps the business owner the ability to understand their business performance.
- Lower turnover
Internal bookkeepers are most likely to leave a business for better growth opportunities. If you outsource your bookkeeping services, you’ll never face the issue of hiring a bookkeeper. Bookkeeping services are more interested in a long-term relationship with their clients and rarely drop clients.
- Lower cost
Outsourcing your bookkeeping service will save your company’s cost. The cost-saving benefits include lack of payroll taxes and other employee benefits. Outsourcing bookkeeping services works out to be cheaper than paying a full-time bookkeeping employee. Bookkeepers’ records will give you both positive and negative feedback about your company’s financial status.
- Accuracy in accounting
Outsourcing your accounting can provide you with accurate results. This, in turn, ensures better management of your business. There are dedicated staff who are experts in accounting to ensure that your business accounting is done efficiently on a professional level.
- Controlling the risk of fraud
Outsourcing your company’s accounting services can lead to the reduction of fraud risk that may happen when you get an internal staff to keep a check on the accounts of the company. The service providers are responsible for the transaction process and quality of accounting service.
One of the major advantages of outsourcing your company’s accounts is that you can save up on a lot of operational costs that are incurred on the business. This, in turn, will lead to raising funds for the growth of your business.
Accounting and payroll processing can consume a lot of your valuable time that can be spent on concentrating on the growth of your business. Outsourcing will free up your time involved in accounting and payroll processing.
An expert bookkeeper for your industry and your business
There are general bookkeepers and expert bookkeepers. Expert bookkeepers of specific businesses will know the industry type and business very well. Finding expert bookkeepers will be beneficial for your business. While finding bookkeepers, always ensure to find bookkeepers who work with companies that have a similar size of your business.
Outsourcing your bookkeeping and accounting services will give you more time in hand to concentrate on the growth opportunities of your business.
For further clarifications regarding the same get in touch with our professional bookkeepers and accountants at +91-9900328729, +91-80-40909797.