Running a successful business requires so much more than selling a product or service. When you own a business, it is critical that you know how to handle financial matters or at least have someone look at this side of your operations to ensure its health. Effective bookkeeping is essential for any-size enterprise, and there are numerous ways to enlist the service if you don’t have your own accounting staff to do the work in-house. Outsourcing bookkeeping services or hiring an accountant to help make sure that your financials are in good health are only some of the ways you can augment your bookkeeping responsibilities and below are reasons why it is advised that you do so:
With bookkeeping services, you get unbiased financial assessments and recommendations. An internal bookkeeper may find it difficult to separate emotional attachment from your business. This may affect the way he or she treats your audits. An external bookkeeping accountant or service is without any emotional ties with your business, and therefore can provide you with a more objective insight about the financial position of your business. They will not pat your back and tell you all is well even when you are clearly in trouble. A bookkeeping service will tell you as it is and provide you with the tools you need to make sure all your weaknesses are addressed by playing on your strengths.
Conflict of interest is also avoided when putting bookkeeping in the hands of a third-party service provider. In a business partnership, it is wiser to entrust accounting to a third-party provider so as to remove bias and avoid accusations of misconduct, which can potentially ruin business relationships. Accusations of misconduct may be the root of inconsolable partnership feuds, even when the mistake or the error in bookkeeping may be unintentional. You wouldn’t want to put yourself or your partner in the position where one must make a choice between what’s best for you and the company.
External bookkeepers are highly experienced in providing auditing and accounting services to a wide range and variety of businesses in many different fields and industries. Being acquainted with different types of businesses means great skill and knowledge in manoeuvring potential issues you may face financially.
Finally, hiring bookkeeping services can help you lower your costs significantly as you forgo the need for paying an in-house bookkeeper, which can amount to significant expenses in the long run.
About the Author:
Amit Gupta, Director, Allenby Accountants.
Allenby Accountants is an independent accounting firm, located in Uxbridge, West London. We are accountants, business advisers, offering financial services and helping you to achieve your business ambitions. Our offered range of services include accounting, bookkeeping, tax management, VAT management, tax planning, Inheritance tax, capital gains tax issues, succession planning, etc. We specialise in offering services to sectors like medical & healthcare, retail industry, professional services, property & construction industry, charity and not-for-profit organisations and more.