When to Outsource Your Accounting
I am sometimes asked what’s the benefit of hiring an outsourced construction bookkeeper as opposed to employing an in-house worker. While we’re not unbiased, our default goal is to help businesses develop systems that work for them—regardless of whether they choose to work with us or if they’re just looking for advisement. And, the truth is, the choice of whether to work with an outsourced bookkeeper comes down to four main components: the volume of work running through a business, the cash flow of the business, the structures developed around the approval process, and the people currently employed by the business. What I’ve found is that with smaller builders (revenues of less than $3M/year), the cost savings, flexibility, and expertise of hiring an outsourced bookkeeper can produce significant, out-sized benefits.
On the topic of cost-savings, outsourcing can reduce overhead costs since you only pay for the services you need. Outsourced bookkeepers eliminate expenses like salaries, benefits, and employee taxes. You only pay for the work done, which can be especially cost-effective during slower periods when cashflow may be constrained.
Working with outsourced construction bookkeepers offers flexibility to scale the service up or down depending on workload. This allows construction companies to adjust the level of service as projects and timelines change, without the commitment of a full-time employee.
But possibly the most significant benefit of outsourcing your construction bookkeeping is that you gain access to specialized expertise without the hassle of training someone in-house. Outsourced construction bookkeepers have experience with a variety of clients, giving them broad knowledge of best practices and the latest financial regulations. This expertise can help avoid costly mistakes and can aid in managing compliance.
At Co|Constructors we excel at developing systems and procedures to streamline construction accounting and bookkeeping. While we generally work with smaller builders seeking a cost-effective approach that is also flexible, we also work with larger firms—typically on high-volume transaction categorization. While the tasks may vary, our clients see the value and importance of hiring Co|Constructors due to our deep expertise in the building industry. While pricing and flexibility are both critical, expertise is absolutely essential. We place deep importance on knowing the industry that we work in. And luckily for us, our clients do as well.
