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Time management is an essential skill for business owners, often dictating the success or failure of their ventures. With a number of tasks demanding attention, from strategic planning to client meetings, it's easy for administrative duties to become overwhelming.
One solution that has gained traction in the UK to tackle this problem is outsourced bookkeeping. By delegating financial management to specialists, owners of small and medium-sized enterprises (SMEs) can, in turn, shift their focus onto core activities.
In this blog post, we’ll dive into seven ways business owners save time with outsourced bookkeeping to see how it can help you reclaim your time.
1. Free Up Time from Administrative Tasks
For small business owners, in-house bookkeeping presents a few headaches, especially when it comes to time management. Administrative duties can really pull you away from more strategic and revenue-generating activities.
In fact, a report by Sage found that UK small business owners spend an average of 120 working days per year on admin tasks, which is about 5% of their total manpower.
Instead, with outsourcing bookkeeping, you can reclaim that time back and focus on growing your business. Imagine what you could achieve with those extra days – whether it's developing new products, enhancing customer relationships, or simply having more time to strategise and innovate.
2. Save Time Spent on Training and Hiring
Hiring and training skilled bookkeeping staff can be expensive. According to Glassdoor, the average salary for a bookkeeper in the UK is around £26,773 per year in London.
Additionally, the recruitment process itself can be lengthy and draining, often taking several weeks to find the right candidate and then more time to ensure they are properly trained. Research from Workable indicates that the average recruitment process in the UK takes around 27.5 days.
Outsourcing eliminates the need for recruitment and training, saving you the time required to bring new employees up to speed. You can bypass these stages entirely, allowing you to get immediate access to experienced professionals without the hassle of training and onboarding.
3. Real-Time Financial Insights
Another advantage of outsourced bookkeeping services is that they utilise advanced accounting software and technologies. These tools provide real-time financial reporting and analytics, offering business owners deeper insights into their financial performance.
A 2023 Xero survey found that 58% of small business owners in the UK believe that technology enhances their operations. These businesses have seen an increase in clients, with 75% reporting higher revenues over the past year.
With real-time data at your fingertips, you can make informed decisions quickly, spot potential issues before they become problems, and gain a clearer understanding of your financial health, all of which contribute to better strategic planning and more robust business growth.
4. Eliminating the Need for Manual Data Entry
Bookkeeping is the heart of financial management, handling all the recording, storing, and retrieving of financial transactions. It keeps you compliant with regulations and gives you key insights into your financial health. But let's face it, bookkeeping is incredibly time-consuming and demands a lot of accuracy and attention to detail.
Manual data entry is not only tedious but also prone to errors. Outsourced bookkeeping services automate many of these processes, which significantly reduces the time spent on entering and reconciling data. The Office for National Statistics, UK states businesses lose about £37 billion annually due to manual errors.
Moreover, automation not only boosts accuracy but also keeps your financial records up-to-date. For small business owners, this means more time can be spent on analysing financial data and making strategic decisions, rather than getting stuck with the repetitive and time-consuming task of manual data entry.
5. Zero In on Core Business Activities
By outsourcing bookkeeping, you can concentrate on what you do best: running and growing your business. Instead of getting bogged down with financial management, you can dedicate more time to strategic planning, improving services, and engaging with customers.
This focus on core activities can drive growth and increase your business’s overall efficiency. Being able to allocate more time to these critical tasks can significantly impact the success and growth of your business.
Good time management enables business owners to focus on strategic growth, improve work-life balance, enhance decision-making, and concentrate on activities that add the most value to their business.
Yet in actual fact, a UK study revealed that most business owners spend the majority of their workday in meetings and on administrative tasks, leaving less than half an hour daily for active team management.
6. Keeping Cash Flow in Check
Cash flow is the lifeblood of any business, crucial for its sustainability and growth. Outsourced bookkeeping services offer regular and detailed cash flow statements, helping business owners keep a close eye on their financial health.
With accurate forecasting and timely insights, you can make informed decisions, plan for future expenses, and steer clear of cash flow problems. This proactive approach to managing finances can save you significant time and stress in the long run.
7. Staying on Top of Compliance and Avoiding Penalties
Navigating the maze of financial regulations and compliance can be a real headache for business owners. Did you know that missing deadlines or making errors in financial reporting can lead to hefty fines and penalties?
UK businesses collectively wasted an average of £7,000 each on fines in 2023 due to compliance gaps.
Outsourced bookkeeping services ensure you don't become part of this statistic by maintaining compliance and avoiding penalties. With specialists who stay updated on the latest regulations, you can relax and save yourself the hassle of keeping track of ever-changing financial laws.
Wrapping Up
Entrusting your financial management to outsourced accounting and bookkeeping experts like Sanay allows you to focus on core activities that drive growth and innovation. In addition to saving time and reducing costs, you'll benefit from access to advanced technology.
Contact us today to learn how Sanay's outsourced bookkeeping services can help your business streamline its operations and focus on growth. Let’s work together to free up your schedule and drive your business forward.
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