Nearly all small businesses struggle with hiring experienced staff at one time or another. The 2024 NFIB Small Business Problems and Priorities Report ranks “locating qualified employees” as one of the top 10 struggles of small businesses. But for rural small business owners, this struggle of how to find a good bookkeeper is magnified due to the realities of country living. The same characteristics that attract people to a rural lifestyle - such as smaller population, limited industry and an isolated location - can amply the hiring challenge. These staffing headwinds make it especially difficult to find a seasoned and qualified bookkeeper or other accounting functions staff.
Outsourced bookkeeping services are an excellent way to overcome this obstacle because these outsourced accounting services are performed remotely. In an article in Entrepreneur magazine, author and business owner David Walsh acclaims outsourcing and states, “Progressive entrepreneurs realize the unstoppable power of outsourcing to handle aspects of their business that are essential but simply don't make sense for them to deal with personally.”
This team delivers monthly reporting and maintains accurate financial records using cloud-based accounting software, giving business owners peace of mind and clear insights into their business finances. Outsourcing bookkeeping services often supports the client CPA for tax preparation services, which can be invaluable during tax season.
By partnering with professional bookkeepers from a reputable third party firm, rural business owners can save time, reduce overhead, and focus on growth and strategic planning. Some firms also complement outsourced bookkeeping services with controller and CFO services, providing a one-stop, integrated strategic finance and accounting partner.
Unlike in house bookkeepers or local bookkeepers, outsourcing offers flexibility, adapting quickly to unexpected absences or shifting workloads. Their seamless integration into a business’s operations ensures continuous, accurate financial reporting - essential for sound financial management and informed decision-making.
The top three reasons it makes perfect sense for rural business owners to outsource their bookkeeping function are:
1. larger pool of more qualified professionals
The smaller population in a rural community means a finite pool of potential employees. And when the sought-after employee must be experienced in a skill not common to the community’s demographic, the search becomes a long and futile one. As a result, business owners are inclined to settle for someone with clerical experience, but no real accounting knowledge or exposure to financial statements - a less than ideal solution.
A virtual bookkeeping service, however, takes care of the search. With the right outsourced accounting firm, rural business owners gain a partner who hand picks a bookkeeper for them from a group of vetted, well-qualified professionals, handling everything from accounts payable to managing the revenue cycle to payroll to preparing financial statements.
The rural company realizes a far greater benefit than a single bookkeeper; they gain a team that strives to understand the business’s short and long-term goals and are ready to coach and advise as the owner works towards achieving them - just like an in-house accounting firm would.
2. Fewer employee issues and less wasted time
Rural businesses may have more issues with hired bookkeepers (e.g., tardiness, missed work, apathy) because in general, rural employees know they are hard to replace. As a result, business owners spend more time on management, admin and HR tasks than on more productive endeavors that will grow their business. In addition, owners must find and train a stand-in when their bookkeeper goes on vacation or takes extended time off for emergencies, family or other reasons.
With outsourced bookkeeping, these are non-issues. Outsourced accounting and bookkeeping services allows rural business owners to focus on their core business activities without the distraction of managing an in-house bookkeeping team or accounting department. If their assigned virtual bookkeeper has an unexpected circumstance and can’t tend to their account, there is a cross-trained, qualified replacement, ready to step in seamlessly.
Also, outsourcing bookkeeping reduces the risk of costly errors and ensures continuous, accurate financial records are maintained. The outsourced team typically utilize accounting software like QuickBooks Online, to provide real-time financial reporting and monthly bookkeeping updates.
3. Cost effectiveness
Cash flow is a concern for rural business owners. Less populated areas may translate to a smaller customer base and lower sales than urban competitors. The local economy is often dependent on an industry subject to seasonal fluctuations and the ebbs in income are passed on to local businesses. Outsourced bookkeeping may be a cost effective solution and help increase a company's cash flow because it replaces all of these costs:
- Bookkeeper's salary
- Payroll taxes
- Workspace and equipment expenses
- Time-off coverage
- Owner's time spent on management and admin
Outsourced bookkeeping services also eliminate the need for physical office space or expensive accounting software, further improving margins for rural small businesses.
Business owners are often surprised to find that outsourced bookkeeping provides greater benefits at the same or lower cost than a traditional approach.
Driven Insights Advantage
Outsourced bookkeeping solves many of the finance staffing challenges rural businesses face, but not all outsourced accounting and bookkeeping firms are created equal.
Led by seasoned entrepreneurs who understand what it means to run a small business, the bookkeepers and controllers at Driven Insights are charged with more than just “doing the books” for our clients. Talk to us about your business challenges and how we can provide financial information to inform the key decisions in your rural or urban business.
