Bookkeeping is vital to your business, you know that. But as a business owner, you have a lot on your plate and managing your finances can be a daunting task. When your business is in growth mode, you must focus on attracting new customers, expanding your operations, and increasing your revenue. Outsourcing your bookkeeping needs can effectively free up your time and energy while ensuring that your finances are managed accurately and efficiently. 

Advantages of outsourcing bookkeeping and tax services 

Outsourcing your bookkeeping and tax services can provide you with many advantages, including: 

1. Time savings: By outsourcing your bookkeeping and tax services, you can free up your time to focus on core business activities, such as marketing, operations, sales, or customer service. 

2. Cost savings: Outsourcing your bookkeeping and tax services can help you save money on overhead costs, such as hiring an in-house bookkeeper or paying a year-end tax accountant separately.  

3. Expertise: Professional bookkeepers and CPAs have the knowledge and experience to manage your finances accurately and efficiently, helping you avoid costly mistakes and penalties. 

4. Scalability: As your business grows, your bookkeeping and tax needs will become more complex. Outsourcing these services can provide you with the flexibility to scale your services up or down as needed. 

5. Built-in Redundance: One of the challenges of growing a business is having the depth of employees you need to grow. When you outsource your bookkeeping needs, you do not have to worry about hiring or replacing a bookkeeper if someone quits or needs to take time off.  

Many small businesses consider outsourcing both their bookkeeping and payroll, but did you know you could choose to work with one company who handles everything for you including our federal and state income tax returns?  

Using the same CPA for your bookkeeping and tax services can provide you with several benefits, including: 

1. Strategic Tax Planning: When your bookkeeping team notices monthly or quarterly changes that could drastically affect your tax bill, they can have that conversation with you throughout the year instead of waiting until year end to find out you owe a large tax bill.  

2. Consistency: When you use the same CPA for both bookkeeping and tax services, you can ensure that your financial records are consistent and accurate. 

3. Tax savings: Your CPA can help you identify tax-saving opportunities and minimize your tax liability, which can save you money in the long run. 

4. Knowledge of Your Business: When your CPA is intimately familiar with your balance sheet, profit and loss statement, and your industry, their team may be able to provide insight into tax credits or special advantages you should be aware of that a larger CPA practice wouldn’t catch. Often working with a CPA that understands small business is extremely beneficial to a fast growing business.  

Who would be a good fit to outsource bookkeeping and tax? 

Outsourcing bookkeeping and tax services is ideal for business owners who: 

1. Have limited time or resources to manage their finances in-house. 

2. Want to ensure that their finances are managed accurately and efficiently and care about seeing financial reports on a consistent basis.  

3. Are looking for ways to save money on overhead, technology, and payroll spending.  

4. Want to work with experienced professionals who can provide them with valuable financial advice. 

5. Are tech-savvy and value the collaborative experience and expertise that an outsourced team could provide.  

Who would be a bad fit to outsource bookkeeping and tax? 

Outsourcing bookkeeping and tax services may not be the best fit for business owners who: 

1. Prefer to manage their finances in-house. 

2. Have very complex AR needs or handle a lot of job-costing or inventory. 

3. Do not see the value of consolidating taxes and bookkeeping into one place 

4. Want the bookkeeper to manage additional job duties like answering phones or managing the office. 

5. Are not willing to invest in professional services to manage their finances. 

6. Have concerns about the security of their financial information when working with an outside firm. 

Outsourcing your bookkeeping and tax services can be a smart move for business owners who are looking to save time, money, and resources while ensuring that their finances are managed accurately and efficiently. When considering outsourcing, it’s important to choose a reputable firm with experience in your industry and to consider working with the same CPA for both bookkeeping and tax services to maximize the benefits of this approach. We also suggest reviewing local practices that are in your area and a local team will likely have more familiarity with specific state and county regulations that may be required. It’s also wise to ask about clients who work in your industry to verify that an outsourced team could offer you the insight and expertise you would want to continue growing your business.  

Interested in learning whether or not the Patrick Accounting Services are a good fit for your business? Visit our services page to find out.