It’s crucial to stay on top of your finances to succeed with any small business. 

Bookkeeping is an essential aspect of business financial management. It is a requirement of HMRC, but it also helps you track and understand your performance. 

But if you’re worried about getting it right or keeping up with it, you might want to outsource your bookkeeping or pay another business to do it. Want to learn more? We can help. 

This guide discusses outsourced bookkeeping, including:

  • Why outsource your bookkeeping?
  • When should you outsource your bookkeeping? 
  • How can you outsource your bookkeeping?

See also: The importance of bookkeeping in small business

Why outsource your bookkeeping? 

When you outsource your bookkeeping, you hand over the record-keeping of your business transactions to a third-party business. But why might you do this? Let’s go over some of the main reasons. 

Save time 

Outsourced bookkeeping saves you a bunch of time that you can reinvest in running and growing your business

This approach reduces the responsibility on your part and lessens the stresses of financial management. Plus, it’s flexible and adaptable to growing businesses. 

Benefit from expertise

Apart from that, a professional bookkeeping service can offer expert skills and knowledgeable input to improve your record-keeping overall. Bookkeepers likely have formal education that can benefit your books. 

If you’re not a natural with numbers, handing your bookkeeping to someone who’s experienced and qualified can increase accuracy

Bookkeepers help you stay HMRC compliant and allow you to better track what you earn and spend to make better decisions for your business. 

Strengthen your finances  

But why pay someone else when you can do your books for free? It comes down to the value this investment offers. 

When you run a single-person business, you may struggle to complete tasks on top and juggle your many responsibilities. Just because you run solo operations doesn’t mean you need to do everything alone. 

A bookkeeping service can simplify your financial management process and provide advice to improve your finances overall

See also: 7 good bookkeeping practices for small businesses

Simplify your taxes 

You won’t have to worry about your tax reporting if you use a bookkeeping service. 

This method simplifies the tax process and gives you access to people who understand it well. As a result, you’ll submit your tax return efficiently and only pay what you need to. 

Make bookkeeping cost-efficient 

Outsourcing your bookkeeping is more cost-efficient than hiring an in-house bookkeeper. Instead of paying someone a salary, you’ll invest a smaller amount in a service that works with multiple clients. 

See also: How much are bookkeeping services? 

When should you outsource your bookkeeping?

Once you understand why to outsource your bookkeeping, you might wonder when is the right time to do it. Though it is a cost-effective option, it’s still a commitment. So when should you make the transition?

When you start your business

If you outsource bookkeeping as soon as you start your business, you can set up your financial management efficiently

You won’t have to catch up with your finances or re-organise things later. 

This approach lets you start strong with your finances and learn how to use your money well. Doing so can improve the chances of building and growing a successful business. 

When you plan to expand your business 

It might be a great time to invest in a bookkeeping service if you have a small business growth plan or hope to scale. Doing so can help you focus on growth and improve your flexibility to prepare you to take on new opportunities

When you need to organise your finances 

If you notice you’ve fallen behind on your bookkeeping or the records appear confusing and disorganised, it might be the right time to switch. 

Bringing your records to a professional can help you get them in order and worry less about accuracy

See also: Bookkeeping courses for beginners

At the beginning of a tax year 

The beginning of the new tax year on 6th April might be a great time to transition to outsourced bookkeeping. It can set you up for a successful tax year and offer you the opportunity for a smooth transition. 

How can you outsource your bookkeeping? 

If you’d like to outsource your bookkeeping, you might wonder where you can find the best services for your business. 

When looking for a bookkeeping service, consider: 

  • Available services – do they offer the right services you need, and might they provide financial advice? 
  • Expertise – What credentials and accreditations do they have? Do they specialise in small businesses or your market or industry?
  • Prices – request a quote to see if it’s an investment that makes sense for your business. 
  • Customer service and professionalism – it’s crucial to find a service that is both knowledgeable and easy to work with. Since you’ll work closely with this service to maintain your financial records, you’ll need to trust them. 
  • Location – do you want a service that you can meet in person locally or a remote service? 

There are plenty of places to look for your bookkeeping service. Here are a few places to start your search: 

Simplify your bookkeeping with a clever app 

If you’re not quite ready to outsource your bookkeeping or just want some extra support, consider using a tool that can simplify the process. 

Countingup is the business current account and accounting software in one app. It automates time-consuming bookkeeping admin for thousands of self-employed people across the UK. 

The app can help you work more effectively with your outsourced bookkeeping services. It also provides a great alternative to outsourcing as it can streamline your process with:

  • Automatic expense categorisation 
  • Receipt capture 
  • Unlimited invoicing on the go
  • Ongoing cash flow insights 

Save yourself hours of accounting admin so you can focus on growing your business. 

Start your three-month free trial today