Reasons that work-at-home moms outsource work.
Suppose you’re a work-at-home mom presiding over a sizable online business in nearly any industry. In that case, it can make sense to hire a bookkeeping service to take some of the financial burdens off top management, i.e., yourself. Adding a bookkeeping service may be prohibitive for some budding Internet businesses, but this strategy is the key to increasing productivity and profitability for others.
Here are some top reasons work-at-home moms use outside bookkeepers when their businesses expand or become more complex.
1. Payroll
Experienced managers know payroll problems can create financial liability or personnel relations issues. Let the bookkeepers handle payroll details and focus on running your business.
2. Annual Tax Filing
Although you may now employ a specialized tax preparer every April, a bookkeeping service might be able to combine tax services and other financial services into one neat annual service.
3. Accounts Receivable and Accounts Payable
Your business might be doing great, but if you have to spend a lot of time digging money out of clients or otherwise dealing with A/R and A/P issues, that may be taking time away from your productivity. A bookkeeping service can also make the Accounts Receivable process more accessible by giving your business a more powerful presentation.
4. Resolving Financial Conflicts of Interest
Another reason that Internet business managers choose to use bookkeeping services is to address situations where business partners might have access to the same capital but different ideas of how to use that money productively. Often, a business experiences problems where a partner or other leader allocates cash so that a management team doesn’t approve that system. Having a bookkeeping service in place often helps avoid these situations because allocating funds is more concrete and gets more tracking periodically.
5. Employee Withholding
Withholding taxes from employee paychecks is another business aspect that can be daunting to business owners. Specialized bookkeeping services know how to deal with the ins and outs of different tax withholding situations. One area where these financial firms can provide services worth the cost.
As future managers in business, you will need to understand and analyze your organization’s financial performance. It will let you meet targets and improve when necessary. Knowledge of accounting techniques and interpreting accounting statements will be critical to your effectiveness as a manager.
Managers make decisions. The elements of a decision will often integrate financial, marketing, human resource, and other considerations. Although the quantitative information generated by accountants is often compelling, it is not absolute, and students should always consider the organizational context of the data.
Furthermore, understanding the concepts and ideas presented in this unit is vital to fully appreciate the material presented in other units elsewhere in the course.
Three elements of this unit will approach in the following order:
Financial accounting and reporting.
This area consists of accounting information in the public domain and published by organizations. The various stakeholders use this to make economic decisions about those organizations.
6. Free Up Time
All of the above are technical reasons to consider outsourcing the financial aspects of your business to a bookkeeping service. Many of these issues have something in common: internal problem-solving can take time away from customer outreach, expanding a business process, or anything else that business leaders consider a priority. Hire out your books, and you will free up more internal resources for doing what made your business a success in the first place.
These are just some principal reasons for using bookkeeping services for work at home-based businesses. The more employees and business process your home business includes, the more critical it is to look at the best ways to manage finances, from payroll to taxes, and allow for future growth.
By law, businesses must keep a record of every company’s financial transaction, whatever the size. The papers will then be presented to the government on tax time to determine how much tax businesses must pay and how many tax returns they’ll get. If you own an online business, you might want to find bookkeeping for your online business, as this will make it a lot easier for you to run your business.
Is a bookkeeper one of the most critical roles in a business? Do you agree?
Can you do it to hand over all your details to one person and put your complete trust in them?