You’re a busy entrepreneur who’s juggling multiple tasks at the same time, some of which needed to be completed yesterday. One area you can’t afford to ignore is bookkeeping. After all, bookkeeping and financial planning are two crucial components of running a successful business.
Over the past decade, many companies have invested in outsourcing bookkeeping to professionals. In fact, a survey found that businesses who outsourced bookkeeping and accounting services report higher profits and greater financial insights.
Many business owners find that they save time, money, and stress by outsourcing bookkeeping services. In this article, we talk about the details on hiring an external firm for bookkeeping and the advantages of outsourcing accounting tasks.
How Does Outsourced Bookkeeping Work?
Outsourced bookkeeping is exactly as its name implies — having an outsourced bookkeeper to handle all your financial accounts. However, instead of having just one bookkeeper, you have access to an entire team of highly skilled financial experts in various types of accounting. They can handle everything from day-to-day expenses to financial data management and monthly reporting.
When you’re outsourcing bookkeeping services, you can typically expect the following:
- The team will set up your back office business operations, creating a streamlined bookkeeping system and taking care of all data imports. Financial information from your bank statements, invoices, payroll records, and credit card statements will be imported.
- A plan will be set in place to provide data analytics and handle your monthly reporting. You will be provided with accurate financial statements on a monthly or quarterly basis.
- Complete and accurate financial reports will be handed over to tax preppers, investors, and anyone else who may need access.
In this partnership, you get full-course bookkeeping services without having to directly hire accountants into your company. This means you avoid the associated costs in tenure and recruitment, such as benefits, health insurance, training, and working equipment. Outsourcing bookkeeping services also frees your hands from this function and helps you focus on running your business.
Why Outsource Accounting?
We’ve covered ground on the details of outsourcing bookkeeping. Now, let’s delve into why you should outsource bookkeeping services for your company.
Lower the Costs
Having an internal bookkeeper means having a full-time employee, even if you don’t need them at full capacity. When you outsource bookkeeping, you can lower the cost of such services and pay only for a package or plan that suits your needs, letting you save on overhead costs.
Guidance in Finance Management
When you outsource accounting services such as bookkeeping, you gain access to a team of experts who will help you analyze your financial statements, economize business spending, and maximize revenue. You will also receive financial advice catered to the specific needs and goals of your business.
Improve Efficiency
Outsourcing bookkeeping services can save valuable resources and time so you can improve client relationships, explore new partnerships and expand your business. It also provides you access to the best software and technology to make bookkeeping tasks more reliable and efficient.
Control Over Your Money
Outsourced bookkeeping enables you to control your money in a much more secure, efficient, and cost-saving fashion. You’ll have seamless monthly reporting documents, optimal transparency, accurate financial statements, and important insights that will be valuable to your entire team.
Cost of Outsourcing Bookkeeping Services
If you’re hoping to find a clear and concise breakdown on the cost of outsourcing bookkeeping services, this section will disappoint you. Financial situations and bookkeeping needs vary for every business, so it’s not possible to give a blanket number on the amount you’re going to pay for outsourced bookkeeping.
Your business costs will vary on several factors such as:
- Whether the service utilizes humans, software, or both
- Whether you’re looking for accrual or cash-basis bookkeeping
- The scale of your business’ expenses and transactions
- How frequently you give financial reports
- The number of financial accounts you need to connect
- Additional features such as inventory management, accounts payable and receivable, and more
- The overall complexity of your financial needs or situation
The more complex your financial situation, the higher your costs for outsourcing bookkeeping services. You’ll also need to find a good bookkeeper to manage everything.
What You Should Look For When Outsourcing Bookkeeping Services
Now that you understand why you should outsource bookkeeping and what it can do for your business, let’s consider some of the main things to watch out for when embarking on a partnership.
Expertise
When outsourcing bookkeeping, make sure the company’s staff is registered and highly qualified. You can also look for online reviews about their service or ask them for client testimonials. As bookkeeping is important for your business, you want access to professionals with true expertise and experience in the field.
Accountability and Fee Structure
When discussing a plan with an outsourced bookkeeping company, it’s important to know exactly what you’ll be paying for and the reasoning behind those costs. The company should show exactly what work will be done and how much time they’ll be spending on your accounts. It’s always good to nail down a payment structure that meets your needs and won’t provide surprises that could affect your budget and cash flow.
Security and Confidentiality
Your business data is an extremely valuable resource. You don’t want it to fall into the wrong hands, such as devious hackers and cybercriminals.
Before selecting a provider of outsourced bookkeeping services, make sure that the company has comprehensive confidentiality policies as they will be handling your precious financial data. Also, ask about their supporting security protocols. How do they handle data breaches and security issues? These will all prove to be pertinent in the grand scheme of things.
Outsourcing Bookkeeping Can Grow Your Business — Talk to NarraSoft Today
Outsourced bookkeeping services will provide you with the expertise and financial tools to take your business to the next level. Tax season will no longer be a burden and data management and reporting will be a breeze. You’ll enjoy the peace of mind you need to continue doing what you do best, without the added expense and stress of managing an in-house financial staff.
In today’s business atmosphere, having a trusted partner for outsourced bookkeeping can mean long-term success. Talk to NarraSoft today and see how outsourcing bookkeeping services can make your job more rewarding.