top of page

Top Bookkeeping Challenges for Small Business Owners (And How Outsourced Talent Can Help)


You worked really hard to start your own small business. But it’s not always easy.  One problem you might encounter is bookkeeping.

Keeping tabs on your finances is crucial for your business’s success, but it can also be a real headache if you’re short on time or resources.

In this blog, we will identify the top bookkeeping challenges faced by small business owners, and introduce you to a secret weapon that can save the day: outsourced bookkeepers.

Subscription Services

Small businesses often struggle with managing recurring payments and subscriptions. It can be hard to remember renewal dates and make sure all payments are properly accounted for.

It’s a good thing that outsourced bookkeepers can monitor subscriptions efficiently. This includes software licenses, online tools, and other services your business needs regularly.

Outsourced bookkeepers will keep an eye on upcoming renewals, send reminders on time, and help you make payments to keep important resources available without interruption.

E-commerce

E-commerce has completely transformed the way small businesses operate, offering significant growth opportunities. But it can be hard to handle sales, inventory, shipping costs, returns, and refunds. Even well-organized business owners can feel overwhelmed.

You should consider outsourcing to bookkeepers to make things easier. They specialize in managing online platforms. They can simplify your tasks and keep accurate transaction records, as well as offer financial insights. This way, you can focus on other important parts of your business.

Gig Economy

The gig economy changed how businesses hire workers. Freelancers and independent contractors are now important resources for small businesses.

But the challenge is to effectively manage your payments to freelancers and independent contractors. It is important to keep track of these payments in order to maintain transparency and meet financial obligations.

Another important factor that makes things complicated is the issuance of 1099 forms. These forms are vital for reporting income paid to independent contractors, and they must be provided to both contractors and tax authorities.

Outsourced bookkeepers can take care of these requirements for you. They ensure accurate payment reports and contractor documentation. They also provide guidance on tax compliance for gig workers.

Inventory Management

Inventory management is crucial for businesses that sell physical products. It's an essential part of financial management, but it can be challenging to track inventory levels, manage stock movements, and resolve any issues that come up.

Outsourced bookkeepers can make this process easier. They can set up systems to monitor inventory, choose inventory valuation methods suitable for your business, and give advice on how to optimize inventory levels and reduce costs.

For example, a retail store might hire bookkeepers to handle inventory management. They can use a cloud-based system to track inventory in real-time and automatically reorder products when the stock falls below a certain point. This approach helps prevent errors in manual tracking and ensures the store maintains the right amount of products to meet customer demands.

Grant Funding

Getting grants and funding for your small business can open up growth opportunities. But keeping track of all the paperwork can be too much. Grant providers often want updates on how funds are being used and the progress made toward a project's goals.

The expertise of outsourced bookkeepers can be really helpful in this situation.

They make sure the money goes where it's supposed to, whether it’s for specific projects or expenses. This ensures that the funds have the most impact and prevents any mishandling.

Another good thing about outsourced bookkeepers is that they know all about the reports needed for grants and funding. You can be confident that all necessary documents will be prepared and submitted on time.

Don’t Let Bookkeeping Challenges Hold You Back

Picture a future where you no longer have to worry about complicated bookkeeping. With the expertise and assistance of outsourced bookkeepers, you'll have the winning edge to seize opportunities, adapt to market changes, and make your business successful.

Get in touch with us today to discover more about outsourced bookkeeping and how we can be the perfect partner for your business!

0 views0 comments

Comments