What is bookkeeping and why outsource it?
What is bookkeeping?
Bookkeeping is the process of recording, organising, and maintaining financial transactions of a business or organisation. It involves keeping track of all financial transactions, including sales, purchases, receipts, and payments, and classifying them into appropriate accounts. The purpose of bookkeeping is to ensure accurate financial records are kept for the purpose of preparing financial statements, tax returns, and other financial reports. Bookkeeping is a critical function in any business, as it provides a clear picture of the financial health of the organisation.
How time consuming is bookkeeping?
The amount of time required for bookkeeping depends on several factors such as the size of the business, the number of transactions, the complexity of the accounting system, and the level of expertise of the bookkeeper.
For small businesses with a limited number of transactions, bookkeeping may only take a few hours a week, while larger businesses with more complex accounting systems may require a full-time bookkeeper or a team of bookkeepers. Additionally, the use of accounting software can significantly reduce the time required for bookkeeping tasks.
The benefits of outsourcing bookkeeping
1. Cost savings: Outsourcing bookkeeping services can save a company money on overhead costs such as salaries, benefits, and office space.
2. Improved accuracy: Professional bookkeeping services have the expertise and technology to ensure accurate financial records, reducing the risk of errors and inaccuracies.
3. More time to focus on core business activities: Outsourcing bookkeeping services frees up time for business owners and managers to focus on core business activities, such as sales and marketing.
4. Access to specialised expertise: Outsourcing bookkeeping services provides access to specialised expertise in accounting, tax laws, and financial reporting.
5. Scalability: Outsourcing bookkeeping services can easily be scaled up or down depending on the needs of the business, making it a flexible option.
6. Improved compliance: Professional bookkeeping services are knowledgeable about compliance regulations, ensuring that the company is meeting all legal requirements.
7. Better financial analysis: Outsourcing bookkeeping services provides businesses with better financial analysis and reporting, allowing for more informed decision-making.
Bookeeping software providers
Forbes best accounting software for small business for 2023 has recently been published highlighting which software is best for specific types of businesses. We are ple
- Zoho Books: Best Free Accounting Software
- FreshBooks: Best for Ease of Use
- Xero: Best for Advanced Features
- Intuit QuickBooks: Best for Those That Are Self-Employed
- NetSuite: Best for Automation
- MarginEdge: Best for Restaurants
- Sage Business Cloud Accounting: Best for Micro-Businesses
- Neat: Best for Self-Employed
- Kashoo: Best for Startups
As proud partners to Xero, we are pleased to have them mentioned in the list above and happy to be in a position to help small businesses with their bookkeeping using Xero.
Xero is a cloud-based accounting software designed for small and medium-sized businesses. It offers a range of features that help businesses manage their finances, including invoicing, bank reconciliation, payroll, inventory management, and expense tracking.
One of the key benefits of Xero is its ease of use. The software is intuitive and user-friendly, with a simple and clean interface that makes it easy for users to navigate and find what they need. It also integrates with a wide range of third-party apps and services, including payment gateways, CRM systems, and e-commerce platforms, making it a flexible and versatile solution for businesses of all types and sizes.
Another advantage of Xero is its real-time reporting capabilities. The software automatically updates financial data as transactions are processed, allowing businesses to get an up-to-date view of their financial position at any time. This can be particularly useful for businesses that need to make quick decisions based on their financial performance.
Overall, Xero is a powerful and reliable accounting software that can help businesses streamline their financial processes and make better-informed decisions. Its user-friendly interface, wide range of features, and real-time reporting capabilities make it a popular choice for businesses looking to improve their financial management.
Contact us to discuss how we can help with your bookkeeping.