Bookkeeping Benefits for Your Toronto Business

Bookkeepers are useful to employ for any business because they offer an ongoing way to track and monitor expenses. However, there are often a few hesitancies when it comes to deciding whether or not to hire such an individual. The task may not immediately seem like one that requires a new staff member, or there may be concerns about letting a third party know about the inner workings of your business. These are natural concerns but ones that are hard to maintain when the full business benefits of a bookkeeper are realized.

Opportunity Costs

Any time you spend trying to manage your own bookkeeping is time that could be spent growing your business. Additionally, accounting software can be tricky to use without some familiarity or training and you may find yourself wasting valuable time trying to troubleshoot easily avoidable problems. Does hiring a bookkeeper cost money? Yes, of course it does. But it costs far less than what you could lose from wasted time that’s better spent getting new clients, helping customers, or otherwise improving your core operations.

Avoiding Conflicts of Interest

Hiring a third party to provide bookkeeping services helps avoid potential hazards that can come from using existing employees or business partners. An internal bookkeeper, after all, has an emotional investment in your operations. This can be a good thing and a great motivator, but it also means that the person may be unwilling or unable to see or talk about any financial problems that have been developing. A third party is unbiased and can provide key insights into your operations, whether positive or negative.

Turnover (Or Lack Thereof)

One of the problems with an internal bookkeeper is what to do if they end up leaving, which can happen for any number of reasons (injury, death, illness, quitting, firing, arrest, etc.). All of a sudden, you have been deprived of a key manager of your accounts, debts (both owing and owed), payroll, and more. Disruptions from this occurrence are unpleasant, to say the least. One of the advantages of an external bookkeeping firm is that the relationship is not dependent on any one individual. Even if—for whatever reason—the person working with you departs, someone will be readily available to take their place.

Outsourcing Benefits

Not everyone needs a bookkeeper for the same reasons. Larger businesses would need someone working 9-5 to keep everything balanced while smaller ones might only require part-time help. Outsourcing to a third party allows you flexibility because you can get talented, expert accounting services in the precise amount your business requires. This also means that you’re only paying for what you need and nothing more.

Focus and Accuracy

A bookkeeper’s sole focus is your business’s financial. They are not juggling other duties or having their attention split. They have expertise in accounting and know what the best practices are for your type of operation. When trying to manage the books yourself, you will inevitably find situations outside of your ability or there may be times when you procrastinate because you’d much rather do work that is more in line with your skills. A bookkeeper is more focused, more dedicated, and more accurate overall.

Consider Experienced and Professional Aid

Paul Babber and Associates Ltd. have been providing personal, business, and corporate tax and accounting assistance to GTA residents for over 30 years. We can provide practical bookkeeping training and continued supervision to members of your staff or family to help you save on costs. Our motto is “To Serve and Save.” Contact us at 905-707-7719 or through our website to receive friendly, professional help.