If you are a small business, your priority is always going to be to keep expenses down. In particular, if you have limited resources, you might try to do a lot of administrative tasks by yourself.
Something that a lot of small business debate is whether to prepare your books in-house and by yourself or to outsource bookkeeping to a company in London.
Ultimately, the best choice for you is going to depend on your finances and a variety of other factors. But, let’s take a closer look at the options.
Doing the Books Yourself
There is the presumption that doing the books yourself is going to be the most efficient way to get the job done. If you have prior experience with bookkeeping, this is something that you are going to find simple.
You will already have the knowledge and training necessary to get the job done correctly. In particular, if your small business is new, things are going to start out quite simple.
The volume of transactions is going to be low and you can keep up-to-date without a lot of time and effort.
However, you have to realise that once your business starts to grow, the books are going to get more complicated.
If maths and organisation are not your strong points then you might struggle and be better off with bookkeeping services. In addition, it is going to be a task that gets time-consuming.
As a business owner, this might be time that you do not have. You cannot afford to rush this task and make mistakes. You will be penalised for this later on.
One of the number one reasons why small businesses choose to do the books themselves is the cost.
There is the assumption that hiring a bookkeeper is going to cost a lot of money, which are expenses you could avoid in the long run.
Indeed, this might be true if you are hiring a bookkeeper for in-house. But, this is not always the case if you are outsourcing this work to a bookkeeping service.
What’s more, having all of the right bookkeeping equipment can be costly. You will have to purchase software and other equipment you need to keep sufficient records for your business.
This constantly needs updating so that you can stay on top of everything. If you are thinking about hiring an in-house team, this is also going to cost a lot of money.
We are talking about the whole hiring process, their salaries and regular training for bookkeeping. For a lot of small businesses, this is going to be a lot to pay out at first.
Choosing Bookkeeping Services
There are a lot of advantages to outsourcing your needs and enjoying a bookkeeping service. Namely, you can remove the stress and responsibility of doing the books by yourself.
No longer do you have to learn how to keep records, but you can also remove the anxiety associated with possibly making mistakes.
Another great advantage of outsourcing your bookkeeping is that you are going to gain back a lot of your time. This allows you to work on other tasks associated with the business that you have not had enough time for.
For example, you have the opportunity to prioritize growing your business and taking it to the next level. Of course, you are going to still be able to stay in the loop with regular updates.
Outsourcing bookkeeping is handing over the responsibility to a knowledgeable and experienced team. You are going to benefit from their expertise and know your books are in safe hands.
What’s more, they are going to already have all of the latest software and equipment. So, this is an expense you can avoid.
There is a concern with a lot of small businesses that there is going to be a high price for outsourcing this work. But, it is more affordable than bringing this task in-house.
You can take a look at different companies offering this service and find one that suits your budget. Just be sure that you do not allow price alone to dictate your choice.
Sometimes, the cheapest service is not going to be the best. Likewise, the most expensive bookkeeping service is not going to be for everyone either.
Make sure that you look into the company and see how much experience they have. You can always contact them and ask further questions to see if they are a company you would like to hand over your books to.