Outsourced bookkeeping can be a game-changer for businesses looking to streamline their financial management and focus on growth. In this post, we’ll cover everything you need to know about outsourced bookkeeping, including its benefits, costs, and how to choose the best service provider.
What Is Outsourced Bookkeeping?
Outsourced bookkeeping refers to contracting an external firm or professional to manage your business’s financial transactions, record-keeping, and reporting. This can include tasks such as bank reconciliations, accounts payable and receivable management, payroll processing, and financial statement preparation.
Does Outsourcing Your Books Make Sense for Your Business?
Outsourcing your books may be a smart move if you:
- Lack the time or expertise to handle bookkeeping tasks in-house
- Want to focus on core business activities
- Seek professional financial guidance and advice
- Need scalable bookkeeping services to accommodate business growth
Who Outsources Their Bookkeeping?
Businesses of all sizes and industries can benefit from outsourcing their bookkeeping. Common examples include startups, small and medium-sized enterprises (SMEs), and even larger organizations looking to streamline their accounting processes.
What Bookkeeping Services Should You Outsource?
Consider outsourcing the following bookkeeping tasks:
- Bank and credit card reconciliations
- Accounts payable and receivable management
- Payroll processing
- General ledger maintenance
- Financial statement preparation
- Tax filing and compliance
How Does Outsourced Bookkeeping Work?
Outsourced bookkeeping typically involves the following steps:
- Choose a bookkeeping service provider that fits your needs and budget.
- Set up communication channels and share access to your financial data.
- Establish a workflow and timeline for bookkeeping tasks.
- The bookkeeper processes and maintains your financial records.
- Receive regular financial reports and insights from your bookkeeper.
What Are the Advantages of Outsourcing Bookkeeping Services?
- Cost savings: Outsourcing can be more cost-effective than hiring a full-time in-house bookkeeper.
- Expertise: Gain access to experienced professionals with specialized knowledge and skills.
- Time savings: Free up time to focus on core business activities and growth.
- Scalability: Easily adjust bookkeeping services as your business grows or changes.
- Compliance: Ensure your financial records are accurate and compliant with regulations.
What are the Costs of Outsourced Bookkeeping?
The cost of outsourced bookkeeping can vary depending on factors such as:
- Service provider rates
- The scope and complexity of bookkeeping tasks
- The size and nature of your business
Typically, outsourcing bookkeeping services can range from $200 to $2,500 per month.
Outsourcing Your Bookkeeping To Grow Your Business
Outsourcing your bookkeeping can free up valuable time and resources, allowing you to focus on strategic growth initiatives, such as product development, marketing, and customer service.
What Are the Best Outsourced Bookkeeping Companies?
Some popular outsourced bookkeeping companies include:
- KPMG Spark
- Merritt Bookkeeping
When selecting a bookkeeping service provider, consider factors such as expertise, pricing, reputation, and the range of services offered.
Outsourced bookkeeping can be an invaluable solution for businesses seeking to optimize their financial management and focus on growth. By understanding the advantages, costs, and potential service providers, you can make an informed decision about outsourcing your bookkeeping and ultimately boost your business’s financial health and success.