Financial operations like bookkeeping are paramount to organizations worldwide regardless of the size or industry. These operations ensure that companies always have the required capital they need and allow them to operate in a sustainable manner.
Given the complexity associated with bookkeeping operations, firms often have to consider whether to use an inhouse professional or outsource to book keeping services providers. Recent statistics have shown that the global book keeping services market is currently valued at $68 billion and is expected to reach $149 billion by 2031.
Using bookkeeping services can be highly beneficial to businesses, but before we get into that, let’s briefly uncover what bookkeeping services are.
Understanding Book Keeping Services
Book keeping services are mainly centered around recording and keeping track of a business’s financial transactions. Those who provide book keeping services are expected to summarize the financial activity of a company at regular intervals and create financial reports accordingly.
Insights derived from these reports can then be used to determine the monetary position and the performance of the business. Other financial operations within book keeping services include:
- Creating invoices.
- Preparing tax returns.
- Monitoring performance.
- Maintaining accounts payable and receivable.
- Conducting cash flow and budgeting analysis.
- Ensuring consistency between financial and bank statements.
Another critical aspect of book keeping services that companies must be aware of is that they’re different from accounting. Book keeping operations are mainly about collecting day to day financial records. Accounting services, on the other hand, are more about analyzing the financial data collected by the bookkeepers.
Now that you have a basic understanding of what book keeping services are, let’s look at the benefits of outsourcing these operations to specialized professionals.
Key Benefits of Outsourcing Your Book Keeping Services
When it comes to outsourcing, the underlying benefit, regardless of the service, is that companies can work with specialized professionals at a lower cost. This holds true for bookkeeping as well. In addition, some of the key benefits of using book keeping services include:
Less Time And Paperwork
Maintaining records of monetary activities pertaining to business operations can often be time-consuming and may also lead to additional paperwork. However, these hurdles fade away when companies use book keeping services. The benefit here is that when these operations are outsourced, in-house employees have the adequate amount of time needed for operations that help the business grow.
Low Errors
With one or two employees maintaining financial records, it’s possible for businesses to fall prey to human error. Such errors can be caused by an overload of information or employee fatigue. Regardless of the cause, they lead to severe challenges causing data inaccuracies which results in poor decisions. When companies use book keeping services they have a vast amount of professionals at their disposal which reduces the probability of such errors.
Better Tax Preparation
Tax laws are one of those things that keep evolving alongside the business environment. Failing to keep up with new tax filing requirements can lead to severe problems for companies that prevail as monetary penalties and may have other legal consequences, too. With book keeping services, firms have access to trained professionals who are abreast with these changes. This allows them to minimize any errors and file returns effectively.
Ability To Scale
Book keeping needs for a company change as the business grows. If companies rely on in-house professionals, the skill level of such professionals may be a hurdle when the company wants to scale. With book keeping services, however, companies can easily add or remove varying services as needed. Outsourcing allows them to have access to competent professionals and helps them save resources needed to train and develop employees.
Access To Advanced Technology
Technology is at the forefront of business regardless of the industry or operations, and finance is no different. Software made for bookkeeping and accounting needs often comes with a learning curve and can be unintuitive, making them challenging for companies to use. However, agencies offering bookkeeping services already have professionals familiar with this software, and working with them can help companies make the most of the leading tool available.
Final Thoughts
Book keeping services are essential to a business as they help determine the financial position and overall performance. However, performing these operations in house can be challenging due to the time, competence, and resources required.
Using book keeping services, on the hand, is highly beneficial as it helps companies have access to leading technologies and competent professionals. With their expertise firms can save time and resources and scale operations to drive business growth. Contact Startup Biz Consultants in Singapore today to outsource your bookkeeping services to professionals.