If you're a work at home mom presiding over a sizable online business in nearly any industry, it can make sense to hire on a bookkeeping service to take some of the financial burden off of top management, i.e. yourself. For some budding Internet businesses, the cost of adding a bookkeeping service may be prohibitive, but for others, this kind of strategy is the key to increasing productivity and profitability. Here are some of the top reasons that work at home moms choose to use outside bookkeepers when their businesses are expanding or becoming more complex.
1. Payroll
Experienced managers know that payroll problems can create all kinds
of issues related to financial liability or personnel relations. 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 easier
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. Every so often, a business experiences
problems where a partner or other leader is allocating money in ways
that a management team doesn't approve of. Having a bookkeeping service
in place often helps to avoid these kinds of situations, because the
allocation of money is more concrete and gets more tracking on a
periodic basis.
5. Employee Withholding
Withholding taxes from employee paychecks is another business aspect
that can be really daunting to business owners. Specialized bookkeeping
services know how to deal with the ins and outs of different tax
withholding situations. This is one area where these financial firms can
really provide services that are worth the cost.
6. Free Up Time
All of the above are technical reasons to consider outsourcing financial aspects of your business to a bookkeeping service. Lots of these issues have something in common: internal problem-solving can take away time 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 of the popular reasons for using bookkeeping services for a work at home based business. The more employees and business processes 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.
