8 Ways a Bookkeeping Service Can Save You Money

Some small business owners insist on handling their own books, thinking that this can save on the cost of an in-house bookkeeper. But these administrative burdens can steal attention from the activities that keep your business moving forward.

A bookkeeping service can help you financially while allowing you to keep your head in the game. Here are eight ways a bookkeeping service can save you money.

1. Pay Less than You Would for an In-House Employee

Third-party accounting and bookkeeping firms can provide industry-leading services at a fraction of the cost of hiring your employees. You’ll keep your books up to date without increasing your infrastructure or employee headcount.

2. Save Money on Accounting Software

To manage your books, you’ll need the latest accounting software. But many providers now offer their products through a Software as a Service (SaaS) model, meaning you’ll pay an annual subscription. A bookkeeping service uses its own software so that you can say goodbye to the ongoing costs of a software package.

3. Retain Valuable Office Space

If you hire an in-house bookkeeper, they’ll likely need office space and a computer station. But for small business owners, space is already at a premium. Outsourcing your bookkeeping needs allows you to retain this space and put it to better use.

4. Avoid Costly Mistakes

If you make a mistake in your books, it can easily cost you come tax season. And if you don’t keep up with your accounts payable processes, you could likewise face fines and late fees. But a bookkeeping service relies on trained professionals to minimize such errors. As a result, you’ll gain greater confidence and avoid fines and penalties.

5. Devote More Time to Scaling Your Business

Face it: if you or your employees are busy handling back-office responsibilities, you’ll have less time to devote to other important business activities that generate revenue. Outsourcing allows your employees to focus on what truly matters and avoid tasks that reduce your profitability.

6. Take Advantage of Tax Breaks

Your business may qualify for deductions or tax credits you didn’t know about. A virtual bookkeeping service can connect you with tax planning experts who can find every possible tax break to save you money.

7. Keep Tabs on Your Cash Flow

Outsourcing your books will give you greater access to your financial data. As a result, you’ll have better control over your cash flow. This ensures you stay on top of your financial obligations and prevents you from overspending due to a lack of awareness of company funds.

8. Scale Your Business Efficiently

A bookkeeping service can pinpoint areas of inefficiency and waste. By addressing these issues, you can improve your business efficiency, which also empowers you to allocate money for expansion projects to scale your business.

Empower Your Business

STG Accounting is committed to providing customizable, expert-level support for businesses of every size. We can assist with basic bookkeeping, tax preparation, and more. Want to learn how we can help your small business? Contact us today!