Deciding to use outsourced bookkeeping services is a significant step for any organization and using a third party can help in ways big and small, obvious and hidden. But when your third-party service provider uses cutting-edge digital tools and platforms to prioritize data-driven business decisions, the results to your bottom line can be significant. For business leaders, the key is to not only assess whether a full-service bookkeeping solution fits the specific needs of the organization, but if the service is efficient and responsive.
BDO has cultivated strategic alliances with digital-forward platforms including Xero, Intuit's QuickBooks Online (QBO), and Microsoft Dynamics 365. The combination of the knowledge of our advisors with the efficiency of these platforms and tools has allowed us to take outsourced bookkeeping and cloud accounting services to a new level.
To help you understand the benefits for your business, we've put together this infographic outlining the top 10 reasons organizations should consider outsourcing their bookkeeping—and what your organization could gain by doing the same.
1. Turn data into deliverables
We live in a data-driven world. The problem for businesses? Accessing data in a way that informs meaningful decisions. A cutting-edge bookkeeping provider will offer crucial visibility on your KPIs–which can then be used to improve operations and profitability. And with the power of platforms such as Xero, QBO, and Microsoft Dynamics 365, data and real-time financial positions are more accessible than ever.
2. Gain an advisor, not just a bookkeeper
Bookkeeping needs to be more than just debits and credits. Finding bookkeeping talent and support that can also provide financial data to help inform your business decisions is a challenge. This challenge can be met head-on if your service provider uses tools and systems to move beyond just data entry, adding advice and guidance that turns bookkeeping into a critical part of business performance.
3. Focus on your core
Business leaders and owners do best when doing what they do best. By outsourcing the bookkeeping function, you can devote your attention to taking care of everyday operations and growing the business.
4. Staffing coverage
It’s not just the quality offered by a bookkeeping provider–it’s the quantity. Many business leaders dread not having access to a bookkeeper when their business needs attention. Among the specific challenges: staff turnover, vacations, illnesses and seasonal peaks. An outsourced bookkeeping provider offers a dedicated team and the staffing coverage a business needs without the hassle or overhead.
5. Avoid getting blindsided
Tax changes wait for no one. The risks of falling out of compliance with the CRA become real all too quickly the moment penalties and interest are charged. Outsourced services help ensure someone has eyes on the tax landscape at all times.
6. Secure financial info
An organization’s financial data is vulnerable to breach. Securing that data–and protecting the business–adds a layer of complexity to business operations. That’s why many businesses hand off the hassle to a third-party provider that makes security its concern.
7. Increase profitability
Outsourcing the bookkeeping function shouldn’t come down just to cost–the business is too important for that. However, outsourcing can save businesses money–both on overhead and on hidden costs such as fraud, fines and errors.
8. Services that scale
Many business owners outsource their bookkeeping with an eye on the future. As companies grow, their bookkeeping needs grow at the same rate. These are good challenges to have–but they are still challenges. Outsourced bookkeeping is a solution that can scale with the business.
9. Free up internal resources
Organizations have a finite number of employees. By moving the bookkeeping burden to a third party, companies can allocate employees to value-add tasks in the business.
10. The transition may be easier than you think
For all the many reasons to outsource the bookkeeping function, business leaders often raise a valid concern: how will a bookkeeping provider migrate my data and how long will the process last? Before deciding to outsource, businesses should ask their provider for a transition plan. The good news: The technology used by today’s top bookkeeping solutions makes the transition surprisingly quick and the business disruption minimal.