Ten Reasons to Outsource Your Bookkeeping Today

When speaking with small architecture firms CVG frequently examines the roles and responsibilities of firm owners. They are frequently responsible for the majority of the firm’s operational tasks. If the owner is not focused on building resources that eventually allow her, or him, to increase attention on more critical functions, the business will inevitably be constrained.

The fundamentals of accounting within a small firm are mostly constant. There are proven methods for constructing an appropriate chart of accounts, measuring financial performance, and creating data sets that can drive strategic business decisions. Best practices are fairly well known and proven.

The emergence of cloud-based technologies and software has opened access to a large body of talent. Firms are no longer restricted to local searches for part-time, or full-time financial managers who physically come into the office to perform bookkeeping functions.

Here are ten great reasons to outsource your bookkeeping:

1. Have accurate and complete financial statements ready for loan applications.

   With the financial aid packages becoming available as a result of COVID-19, firm owners submitting applications will need their financials to be in order -- and quickly.

2. It is a proven best practice.
   Geoff Gibson, a partner with Winder Gibson Architects in San Francisco, California, notes “We were resistant at first. We had relied on our own internal resources, combined with our accountant, and couldn’t really see the advantages of outsourcing bookkeeping. Looking back today, it was one of the best business decisions I have ever made.”

3. Know what you don’t know.
   Most firm owners were never trained to be a bookkeeper, nor do they typically enjoy it. As a result, many small firms struggle with disorganized records, inaccurate reports, and possess little understanding of the financial performance of the firm. “I didn’t really want to let it go, because it took so long to build into our rituals,” says Chris Johns, a partner with Thoughtcraft Architects in Boston, Massachusetts, and Chapel Hill, North Carolina. “I can’t imagine if I was responsible for bookkeeping today. I don’t know how I could ever get it done.”

4. It is safer than you think.
   Of course, nothing in today’s technologically advanced world is full-proof; there is always a level of risk. However, today’s cloud-based technologies are safer than ever and rival the risks of another human being physically entering your office and managing your books. Commonly used software such as Quickbooks and Xero track every activity so you can see exactly who has done what. Many experts report using the cloud is safer than creating a virtual private network.

5. It is affordable.
   Owners of small firms are typically doing billable work about 50% of their time. This means the other 50% is spent running the business. The value of that time is extremely high. Managing staff, getting new clients, ensuring current clients are pleased, developing processes so the firm becomes more efficient, raising capital, are all just some of the many responsibilities a firm owner faces. Removing the 10 - 20 hours a month needed for general bookkeeping services is well worth the roughly $1,000 a month a firm spends on outsourcing.

6. Learn best practices from a pro.
   Companies that provide virtual bookkeeping services, specifically for small architecture firms, have developed best practices, efficient procedures, and standards that most firms don’t understand. They typically have never been exposed to this level of service. Most of the time, the firm owner has “just figured it out” and has not had the time, interest or expertise to create a more efficient system.

7. Keep your finances consistent.
   Firm owners that are managing their own books commonly fall behind on reconciling, invoicing and generating accurate financial reports. This creates inconsistencies in the records. Correcting errors made long-ago can cause discrepancies and can affect decision-making.

8. Build-in redundancy.
   Firms that employ an in-house bookkeeper often become highly reliant on a single individual. When that person leaves or is forced to be absent for an extended period of time, the firm is in chaos. No one knows how to do that job. Outsourcing your bookkeeping to a firm that specializes in this work assures you there is redundancy.

9. Build-in scalability.
   You don’t have to worry about hiring, and managing, more people to manage your finances as you grow. A professional bookkeeping company (particularly one that has embraced the virtual environment) has the talent and resources to scale.

10. Be the “good cop” in the collections process.
    Managing client relationships is a firm owner’s top priority. This can be uncomfortable when you’re also trying to collect on a past due invoice. A professional bookkeeper can manage collections without damaging the relationship. There is an expectation that she, or he, would send reminders, make phone calls, and be more forceful. It is commonly understood that this is their role.

Check out CVG’s one-page guide to delegating bookkeeping while keeping control over your firm’s finances.

CVG has launched a new division within the company. Studio Services Bookkeeping (SSB) provides reliable, professional and safe bookkeeping services exclusively for small architecture firms.