It is still a wonder to me how in a matter of a week’s time, my conversations with clients turned from thrive, to survive. When the stay-at-home order was put into effect in our state due to COVID-19, my bookkeeping clients were no longer asking me for advice on how to expand their business. They were suddenly looking for advice on how to cut costs and maximize revenues to survive the shut-down. With all of the uncertainty surrounding the economic outlook, you may be asking yourself how you can save money in your business. Taking on another expense to save money seems counter-intuitive, but stick with me as I explain 6 ways that outsourcing your bookkeeping might actually save you money.
1 – Put the right people in the right seat on the bus
I’m told that not many people share my zest for bookkeeping. Shocking, I know. People excel when they are passionate about their work.
I see it time and time again. Companies need administrative assistants but don’t have enough work to fill a 40-hour week. So, they assign bookkeeping tasks to “keep them busy.”
Bookkeeping shouldn’t just be busy work for employees who aren’t passionate about giving it their all. As an alternative, let the employees exercise the knowledge and skills that make them shine. Maybe they are great at engaging with clients or maintaining quality control of deliverables. Enhance their morale – and your bottom line – by putting them in charge of what they do best.
This brings to mind my first job out of college. I was the office manager for a collision repair center. It was my job to answer phones, do the bookkeeping and all other things associated with “managing an office.”
My reviews were always great except for one consistent suggestion for improvement: my phone etiquette. As much as I wanted to please my boss, there is something about phones that makes me want to rip my ears off. I didn’t want to answer the phones. I wanted to do bookkeeping!
Eventually, I went back to school to expand my business degree to an accounting degree so that I could finally land a position doing what I loved best. Not only did I bloom in that role, it eventually led to me opening my own successful bookkeeping business. Visit our FAQ page
2 – Reduce supply expenses
If you go with a virtual bookkeeper, you can save thousands of dollars each year on printer ink, paper, checks, envelopes, stamps, bankers boxes, storage space, and the labor to manage and acquire all of these things. Imagine if your bookkeeping were reduced to snapping a picture of a receipt with your phone or hitting Forward on a bill that was emailed to you. Vendors are paid electronically, and customers pay you electronically.
A good bookkeeper can make all of this a reality! With a new, paperless bookkeeping process, you can get rid of the musty, old file cabinets. You won’t need them anymore. Ahh, the aroma of sweet success!
3 – Modernize your marketing efforts
Instead of spending several hours a month on bookkeeping tasks, what if you devoted those hours to modernizing your marketing efforts? What would the impact be? Perhaps you could use this time to:
• Automate your appointment booking process
• Automate email responses to inquiries
• Create a screening questionnaire to ensure you spend time only on qualified prospects
• Create proposal templates so you can create beautiful proposals in less time
• Learn how to host client meetings virtually to save on time and travel
• Use the time you gained through automation to meet new people and expand your network
In order to maximize your new-found free time for marketing, consider outsourcing your bookkeeping to an experienced and trustworthy bookkeeper. Request a Free Consultation
4 – Make the most of your space
Was there ever a better time to evaluate whether you really need 2,400 sq. ft. of office space? COVID-19 forced people to figure out how to work collaboratively without being in the same space.
I have one client who could have gone virtual a long time ago and saved at least $2,500 a month in rent alone. It wasn’t until COVID forced this client to work remotely that the change occurred. Eventually, he discovered that almost everything could be accomplished virtually. For the occasional times when an in-person meeting is required, a co-working space is a good solution.
If you aren’t ready go virtual with your entire team, why not take a smaller step first and hire a virtual bookkeeper? See for yourself if virtual collaboration works for you.
5 – Lower Financial Expenditures
If bookkeeping isn’t your forte, you may be tempted to rush through it and stop at data entry. A good bookkeeper takes it a step further by making sure your financial reports are created, completed, and delivered in a timely fashion. Accurate and thorough financial reports provide important business details like:
- Expenses that are trending upward
- Top vendors who may present an opportunity for price negotiation
- Revenue per square foot and whether trends indicate it’s time for a change
- Trends in the cost of carrying and handling debt
6 – Narrow your focus
It’s no secret that business owners get to wear every hat in the business. However, you can only grow as big as your personal capacity will allow – unless you leverage and delegate. One of the biggest challenges of delegating is transferring knowledge. However, outsourcing your bookkeeping to experienced professionals is the easiest type of delegation imaginable. The bookkeepers already have the processes and procedures documented. They are ready to take over the reins with little or no training, allowing you to narrow your focus to the things you do best.
Bonus Tip – Outsource Your Bookkeeping
When you’re searching for ways to cut costs and maximize revenues during this economic downturn, outsourcing your bookkeeping might be one way to save you money. These six suggestions indicate how a professional bookkeeper can take control of your financial records, become a trusted business partner, and help you evaluate and grow your business.
The people you trust to do your bookkeeping should be highly skilled, easy to work with, and most importantly, passionate about bookkeeping. I am even more passionate about bookkeeping than I was fresh out of college while working at the collision repair center. On a side note, my phone etiquette has improved tremendously, so don’t be afraid to call! Better yet, email me to schedule a free consultation. Request a Free Consultation