Outsourcing bookkeeping can be a good option if you’re ready to remove bookkeeping from your plate, but it can also raise a lot of questions. Which tasks will your bookkeeper be able to handle? Does a bookkeeping service cost a lot? Is it possible to use only bookkeeping software on your own?
This article discusses a few factors to consider when choosing a bookkeeping solution:
- The benefits of outsourcing your bookkeeping — versus using bookkeeping software or hiring a bookkeeper in house
- What tasks a bookkeeping service can cover
- How the process of outsourcing your books actually works
- How much you should realistically budget for quality outsourced bookkeeping.
We’ll go over everything you need to know in order to make key decisions about outsourcing your bookkeeping.
Is it a good idea to outsource your books?
You can see the benefits of putting bookkeeping off your plate and onto someone else’s. Here are some examples:
- This means your time and patience go into growing the business rather than doing it yourself.
- You won’t need to worry about inaccuracies or falling behind on your books when a professional is handling it.
- Your books will be complete, professional, and ready for a CPA to review when you are ready to raise money or file your tax return.
You don’t have to outsource your bookkeeping to another company to get your books off your hands. In-house bookkeepers are another option. Why should you outsource your books instead of hiring an in-house team?
- As your business grows, you can scale your bookkeeping service up or down as needed.
- In many cases, outsourced bookkeeping services are less expensive (sometimes by a lot) than hiring a full-time bookkeeper and paying benefits.
- Bookkeepers are vetted and hired by someone else.
What an outsourced bookkeeping service can do for you
It turns out that there’s a lot of overlap between bookkeeping, accounting, and taxes. Each bookkeeper performs a specific set of tasks. When you outsource your bookkeeping, what is actually included in that service?
Outsourced bookkeeping services can handle any and all of the following:
- In other words, you can import financial information from bank statements, credit card statements, payroll records, invoices, etc.
- Accounting for those transactions by categorizing and reconciling them
- The tracking of bills and revenue yet to be recognized (which includes accounts payable and accounts receivable management)
- Maintaining accurate and up-to-date books
- On a monthly or quarterly basis, we provide you with accurate financial statements, such as Profit & Loss (Income) Statements, cash flow statements, and a balance sheet
- Understanding your financial statements and other aspects of your bookkeeping
- Providing investors, tax preparers, and anyone else who needs access to complete and accurate financial reporting.
It’s up to you to work out the details with the person or service you choose. Ensure your expectations are aligned with their offerings before signing up by asking questions up front.
Why You Should Outsource Your Bookkeeping
Every business needs accurate, complete financial records – but managing them doesn’t have to consume all of your time and patience. Taking the back office off your plate is worth the investment if you would rather spend time growing your business.
This way, you can be certain your books are accurate and get back to what you do best.