Why Bookkeeping Is a Great Thing to Be Outsourced In Accounting Practice
Tony Ristovski
Founder of Next Generation Company
June 22, 2021
The importance of bookkeeping cannot be overemphasized. Every business owner must maintain proper records of the daily, monthly, and annual transactions of the business they own. The constant maintenance of the records of the transactions brings to ease the whole procedure of sustaining and expanding a business. Despite the significance of bookkeeping, when running an accounting or bookkeeping practice, you can sometimes be overwhelmed by these tiny tasks that take away a massive portion of your time. This is the part where outsourcing comes on stage, and there are a couple of reasons why:
✔️ Scalability
Scalability, by itself, is a significant factor that might lead you to the decision to hire an outsourcing bookkeeping company. Growing your client base requires more bookkeeping hours, which increases your costs and “locks” your team’s valuable time. Hiring an outsourced bookkeeping team with controller/senior accountant oversight and a full-service offering enables the service to scale without hiring or training additional staff. Instead, the outsourcing company will do its best to select a team that is already trained and is a great fit to do the job.
✔️ Low-margin task
Even though bookkeeping is a crucial task, it can’t be your primary source of income due to its low profit margin, which is a great reason you need to consider partnering with an outsourcing company. Side task, that for you mean low-margin, for them – it matches the full job description. An outsourcing company, such as Next Generation, would ensure the bookkeeping job is done with the necessary skill, efficiently and error-free.
✔️ Training new staff
Hiring and training new staff is often one of the biggest obstacles when scaling your accounting or bookkeeping practice.
Most accountants prolong their growth simply because they don’t have time or resources to hire and train new team members. You also need to be aware of the learning curve of your new team member and of the mistakes that can cost your practice quite a lot.
Partnering with a professional bookkeeping team will wipe away all these problems. You can simply “plug-in” their team and start focusing on growing your business further. By decreasing the time you spend on double-checking someone’s work, you’ll not only reduce the percentage of errors, but you’ll also increase the productivity of your in-house team.
✔️ Attention to detail
While bookkeeping is a low-margin service and mainly a straightforward task, it requires time and attention to be done correctly. Even a tiny mistake may lead to big consequences down the road. This is a significant problem for today’s accounting firms that strive to provide quality services for their clients and increase their profit margins.
As a Next Generation accounting company, you sure want to grant your clients that your job would be done accurately and avoid errors of any kind. When you hire an outsourcing company, they dedicate a team to your project, so your work will be divided by several people. In that way, you’ll get multiple layers of control and quality check—the best way to avoid errors and increase turnaround time.
Conclusion
Building lean and scalable practice requires partnering with a professional and reliable bookkeeping team. This partnership needs to be a right fit for your internal team and your unique process in total, so make sure to choose wisely.
Next Generation offers a risk-free trial of its services, so you can make sure you are a good fit before committing to anything. Contact us today to find out more!
Masterclass with Josh Greenbaum
Transform Your Advisory Skills Watch Josh Greenbaum’s Masterclass Now! Missed the live session? Don’t miss out on the insights! Get exclusive access to Josh Greenbaum’s
Inspiring Success in the Accounting World: Viviane Hagopian
Inspiring Success in the Accounting World Viviane Hagopian Emma TodorovskaMarketing Manager at Next Generation CompanyOctober 2023 Linkedin-in In this inspiring interview, we delve into the
Managing a Remote Teams: Accountant’s Practical Guide
Managing a Remote Teams: Accountant’s Practical Guide Emma TodorovskaMarketing, Next Generation Company25.08.2023 Facebook-f Linkedin-in The landscape of accounting has undergone a seismic shift. Gone are
Accounting Practice Management Software: The Top 10 Picks
Accounting Practice Management Software: The Top 10 Picks Emma TodorovskaMarketing Manager at Next Generation CompanyAugust 2023 Linkedin-in In today’s digital age, staying at the top
Inspiring Success in the Accounting World Shauna A. Wekherlien
Inspiring Success in the Accounting World Shauna A. Wekherlien Emma Todorovska Marketing Manager at Next Generation Company June 2023 Linkedin-in Dive into the dynamic and
Inspiring Success in the Accounting World: Krista Sievers
Inspiring Success in the Accounting World Krista Sievers Emma TodorovskaMarketing Manager at Next Generation CompanyJune 2023 Linkedin-in Our guest today is Krista Sievers, the proud