Outsourced Bookkeeping: What It Is & Why Use It

The typical cost for outsourcing bookkeeping, accounting, and similar services ranges from $500 to $5,000 per month. There is a massive price difference based on complexity, transaction volume, and many other factors. Cloud-based accounting software like FreshBooks is a comprehensive program that offers robust, trustworthy, and cost-effective financial services.

You can hire local bookkeepers or a bookkeeping team located near your company. The main benefits of such an approach include meeting with the bookkeeper face to face, using physical records, and relying less on online payment and banking systems. Many business owners hire full-time in-house bookkeepers, but this isn’t the most cost-effective solution. A strong bookkeeping system is of vital importance for any company or organization. Here we will be discussing why your business should Outsource bookkeeping services instead of maintaining and managing an in-house team. However, before we jump on the discussion, let’s discuss briefly as to why bookkeeping services are important for businesses.

  • However, provided your outsourced bookkeeping partner embraces cloud-based accounting software, you’ll have access to your books 24/7.
  • There’s also the consideration that an outsourced controller has many additional skills that can benefit your business.
  • However, before we jump on the discussion, let’s discuss briefly as to why bookkeeping services are important for businesses.
  • They will deal with your financial information, bank accounts, credit cards, invoices, and other important documents.

Some of these mistakes (forgetting taxes, delayed payroll, or uncollected invoices) can cause serious harm to your business. This structured approach ensures that outsourcing accounting is efficient, secure, and aligns with the firm’s strategic goals. Following this, a dedicated team of accounting professionals, adept in the latest accounting standards and technologies, is assigned to each client.

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Freelance bookkeepers tend to represent the cheaper option but the services they provide tend to be less sophisticated and leave more room for error. Working with a professional outsourced bookkeeping firm allows businesses access to a proven bookkeeping approach that’s backed by the resources of a larger business. Beyond the numbers, the value proposition of outsourced bookkeeping is even more compelling. For the price you pay, you gain access to a team of financial experts, cutting-edge accounting software, and a service that is often available around the clock.

Many firms still use bookkeeping and accounting synonymously which is why it is best to look into the services that an outsourced company offers rather than assuming them. When you feel like you are interested in an outsourced firm offering these services, ask them exactly which tasks the bookkeeper will be performing. Going by the standard definition of what a bookkeeper does, the following are some of the services that are handled by an outsourced bookkeeping service. Along with offering the typical outsourced bookkeeping services, AccountingDepartment.com provides outsourced controller services. For CPAs and accounting firms, it’s crucial to weigh the costs against the benefits. Outsourcing can streamline operations, introduce advanced technology, and offer access to specialized expertise, which might not be feasible in-house.

Why Do Businesses Use Outsourced Accounting Services?

You may also utilize TOA Global to hire experts who’ll work on tasks related to financial statements, which could provide timely and accurate insights into your clients’ financial performance. Just keep in mind that you might need to train them on some of your tax laws depending on where you’re located. What I like is that they are up to speed with a lot of the modern accounting software options out there, so if you’re a cloud accounting firm, this might be a good option.

Why Outsource Your Bookkeeping?

This might include a knowledge of tax strategy, insights as to how you should structure your personal compensation to be tax-efficient, and more. Outsourced controllers also bring a tried and tested approach to helping manage your business’s finances. That know-how gives them the ability to build your business a financial infrastructure that’s resilient to all kinds of challenges. These tasks are more strategic in nature than the work typically performed by bookkeepers. As your business expands, your financial transactions and reporting requirements may become more complex. If your financial records are often incomplete or inconsistent, it can lead to costly errors and compliance issues.

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While outsourced bookkeeping can be great, it does carry a risk because your transactions are being handled and managed by someone else. This means tracking bills that have been generated and need to be accounted for. Did your customer make the payment by their credit card on the stipulated date after receiving the service? As a business, you must ensure everything you owe others is paid for on time and that you are also paid for your goods and services on time.

But when you play your cards right, you can save on all 3 factors big time. You can hire a freelance bookkeeper for different CFO services to give you peace of mind. Here’s everything you need to know about outsourced bookkeeping to help you get started and streamline your day-to-day operations.

The type of accounting you use can also dictate the bookkeeping charges such as whether you use the accrual-basis or cash-basis bookkeeping. The volume of transactions also varies by business and these directly affect the price of the bookkeeping service. If you are a large corporation and your business has a complex model, then the charges will probably be much higher than those of a small business. If you need features such as inventory management and other accounting tasks to be done by the bookkeeper then extra charges will be levied. This process involves reconciling your business bookkeeping records with those on the bank statement or your business bank account.

It is easy to use, simple to set up, and grows with your business ensuring accuracy all the way. It automates many important processes such as reconciliation, generates more than 400 reports, and gives you more control of your accounting. TallyPrime makes managing a business easy and helps you in other tasks such as managing inventory, credit management, creating invoices, and so on.

But in reality, many businesses across the country, big and small, are embracing outsourced accounting. Because accounting can be so complex, it’s often pushed to the back burner. Smaller businesses might get by with a basic Quickbooks set-up, but once you start growing, building a more sophisticated financial infrastructure is vital.

Bookkeeping can be a headache for big and small business owners —so much so that 46% of business owners said it was their least favorite task. The process of recording all financial transactions is often challenging and stressful, as there are many other important accounting for carbon offsets day-to-day tasks for startup business owners to handle. It’s easy to put bookkeeping and other back-office tasks on the back burner. The virtual bookkeeping providers above might be our favorite—but if they don’t quite fit your needs, we understand completely.

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