5 Signs It's Time to Outsource Your Bookkeeping

Most business owners start out doing everything themselves (accounting included). It starts off simple enough (recording expenses for meals, office supplies and rent payments), but when bookkeeping becomes more complicated, it’s a logical time to outsource.

5 Signs It’s Time to Outsource Your Bookkeeping

  1. You have outsourced your payroll.
  2. Your business is repaying a loan.
  3. You have recently purchased substantial business assets.
  4. Your business requires multiple bank reconciliations.
  5. You are carrying a balance on a business credit card.

The Benefits of Outsourced Bookkeeping

  • Save Time – Outsourced bookkeeping will free up some of your time for more important things, like running your business. 
  • Save Money – Business owners who do not manage their books in house can save money on expensive software and don’t need to maintain any resources/staff members for the sole purpose of bookkeeping. 
  • Budget Effectively – Books that are maintained by a professional reveal spending and revenue patterns that can help you to budget accordingly. You can quickly identify when it’s time to spend more and when you need to cutback.
  • Peace of Mind – A professional bookkeeper will be knowledgeable of best practices and has access to the proper tools. When you hire a professional, you can trust that your bookkeeping is done right.

Is outsourced bookkeeping right for your business? Contact David@DEKEbookkeeping.com to learn more. 

Determining Profit

Small business owners often adopt an accounting system (or bookkeeping system) for the sole purpose of determining profit. The concept seems pretty simple, but there is much more information that can be gleaned from a good accounting system than just the amount of money coming in. 

It's More than Simple Subtraction

The ability to determine profit starts with the diligent tracking of income and expenses, but an accounting system should provide insights beyond simple subtraction. Business owners should be studying their profit and loss statement to identify ways to increase profits. Which products or services are best sellers? Which customers purchase the most? This is the sort of information that will help to fuel profits in the future.  

Keep in mind that reports can be relatively useless without a point of comparison. Compare profit findings from period to period. Are there any trends? 

Most of us are setting goals, but how can we track the progress? How should company money be spent? Is it a good year to purchase new equipment or take a big business trip? The proper accounting system is crucial to answering these questions. Business owners who possess a firm understanding of profit (the amount, its sources, etc.) are better equipped to manage cash, minimize tax liabilities and achieve sustainable growth. 

In Review: Tips for Determining Profit

  • Diligently track income and expenses.
  • Subtract expenses from income. 
  • Determine the best sources of income (i.e. which products/services are best sellers and which customers are buying the most). 
  • Compare findings to previous periods. Look for trends.  

Need help determining your profit? Submit an inquiry or call (843) 225-6522.