In recent years, the outsourcing of Chief Financial Officer duties, bookkeeping and payroll services has grown immensely. For many firms, this makes a lot of sense. Accounting and bookkeeping services require a degree of financial knowledge and specialization that many small business owners do not have. Similarly to financial consulting services, business owners have sought these back office services out of house.
Small business owners specialize in the thing that they sell. Bakers make incredible pastries and cakes, mechanics fix our cars, and shop owners sell the every day things we need. Similarly there are many firms, that small businesses hire, who specialize in bookkeeping and payroll services. By doing so, firms are able to focus on growing their business and the economy becomes more efficient as everyone is specializing in what they do best. It would not make sense for your accountant to rebuild his own carburetor, so why would it make sense for a mechanic to do his own bookkeeping. Further, when your bookkeeping staff is outsourced, you have the benefit of using the contractors only when you need them. Allowing you to run a more streamlined business.
Outsourced bookkeeping services for small businesses can prove to be a great way for business owners to save cash. In fact, hiring a bookkeeper can save a business up to 35% when compared to hiring a once a year accountant.
This trend of outsourcing bookkeeping and payroll services has allowed business to be more nimble and competitive. There are always economic benefits whenever further specialization is possible. By having more small businesses outsource their bookkeeping and payroll services, the economy can become more efficient as individuals are spending more of their time doing what they are best at. More like this article.