Why you should outsource your bookkeeping

11 November 2019

< back to Knowledge Library

A business is only successful when they have good people, strong processes and planning, effective sales and marketing, and most importantly accurate data. Without accurate data, everything falls apart.

Accurate data comes down to accurate bookkeeping

Bookkkeeping is more than just clicking "OK" in Xero or firing off a few invoices to your customers. While many business owners like to do the bookkeeping themselves, they often shouldn't. They're often no more capable of doing bookkeeping than an accountant is of changing a car tire...

Bookkeeping might feel easy, feel like something you should do (giving the false feeling of being close to money), or seem like something to save money on in doing it yourself. 

In our experience, it's best left to someone who is expert in doing it.

Ultimately though, it all comes down to three things — increased accuracy, streamlined process, and automation. These come together to create better data, and more informed decision making.

Here's four reasons to get an expert handling your bookkeeping:

They're not rushing it, doing it late at night, and actually want to do it. This means they're more accurate and less prone to error.

  1. When you're making decisions based on inaccurate data then the decision will be less accurate. Bad bookkeeping means inaccurate data.

  2. It will be cheaper. Yes — you have to pay for bookkeeping. However an expert is quicker than you, meaning fewer hours spent. This allows you to better invest your time, increasing your profit.

  3. An expert can streamline and automate many parts of your bookkeeping. There's exceptionally clever tech out there which can drive all areas of your business when setup properly.
This isn't to mention lower IRD payments (through catching more expenses), happier creditors with their payments being more accurate, catching mistakes quicker, freeing up your head space as business owner, faster invoicing meaning better cashflow...and more (at the risk of starting to sound like an infomercial!).

Ultimately though, it all comes down to three things — increased accuracy, streamlined process, and automation. These come together to create better data, and more informed decision making.

Why though would a bookkeeper want to do themselves out of a job by automating and streamlining my bookkeeping?
Well, to be honest, some don't. It's important you're working with a 100% tech savvy bookkeeper who knows how to leverage technology to streamline your business.

It's also important for them to have a grasp on your bigger business objectives. With this background, they'll be able to setup systems and processes to get you moving towards your goals quicker.

But surely Xero just does my bookkeeping for me?
To have a dollar for every time we've heard this....
 
Xero can be a trap for bookkeeping — the (at times) dreaded "OK" button can create a real mess. Just because it's easy to click the button doesn't mean that it's easy to do it properly. It's the same with a set of financials — just because a business is in Xero doesn't mean they come out right.

Xero is the enabling tool, not the source of truth. Solid bookkeeping (and accounting) is made easier by Xero, but there's still need for quality control and insights from people over the top.
 

What is all this talk about automation?
Tools like Hubdoc, Zapier, DebtorDaddy, Fergus and Hubspot can make manual data entry a thing of the past — saving time, saving money, and increasing accuracy. Think of these tools like the pipes for your data, pinging information around and saving you from typing and clicking.

The caveat here is that we can't just rely on automation. It needs to be used properly, be setup properly, and fit your business properly. Nothing is simply set-and-forget.
 

 

Want better data, automation and more accurate bookkeeping?

To find out more about what bookkeeping in your business could look like then please get in touch. 

We'd love to have a no-obligation coffee to run through how a bookkeeper could help you, who you could talk to, and how Convex Cloud could automate parts of your business.
L C P Convex2019 6007

for more help feel free to reach out. Get in touch with Eugenie Jones