It’s interesting to see that about 37% of small businesses now outsource their accounting/bookkeeping tasks.
And it’s not just small businesses; 71% of financial service executives are also choosing to outsource some of their services.
So, in this article, you’ll learn about outsourcing bookkeeping services, the best service providers, typical rates, and its benefits.
Let’s begin!
What is Outsourcing Bookkeeping Services?
Outsourcing bookkeeping services is hiring an external team to handle your business’s financial tasks instead of doing it yourself or having someone in-house.
This team takes care of all your accounting needs, such as tracking your income and expenses and keeping your financial records in order.
Best Bookkeeping Outsourced Services
Stealth Agents is a top-rated bookkeeping outsourcing service provider and offering top-tier VAs, particularly excelling in bookkeeping tasks.
Their service is ideal for businesses across various industries, including real estate, healthcare, manufacturing, and more.
They stand out by hiring only the top 1% of VA talent from the Philippines, ensuring high-quality and efficient service.
Their virtual assistants are trained to handle a range of tasks, from administrative duties to specialized bookkeeping.
What are Other Bookkeeping Firms?
Other bookkeeping firms that offer reliable services include Bench, BookMinders, and KPMG Spark.
Bench provides online bookkeeping services suited for small businesses, helping them stay on top of their financial game.
BookMinders offers more personalized services tailored to the needs of both non-profits and small businesses.
These companies support businesses in managing their finances efficiently, ensuring compliance and financial health.
What are the Rates for Bookkeeping Outsourcing?
Basic tasks range from $500 to $2,500 monthly; bookkeeping suits small businesses needing occasional support.
More complex services need detailed reports or compliance and cost between $2,500 and $5,000 monthly.
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Startups can find services starting at $190 monthly for basic features like automated reporting.
Why Should I Outsource My Firm’s Bookkeeping?
1. Cost Efficiency
Firstly, instead of hiring a full-time employee to manage your finances, you pay only for the service you need, when you need it.
This means you don’t have to worry about salaries, benefits, or office space for a bookkeeper.
Plus, you get access to top-notch professionals who can potentially prevent costly financial mistakes.
2. Access to Expertise
These specialists use the latest technology to keep your financial records up-to-date, accurate, and compliant with laws.
This is great for your business because you don’t have to spend money on expensive software or training someone in-house.
On the other hand, you have more time to focus on growing your business while professionals handle the numbers.
3. Focus on Core Functions
It also significantly frees up your time and energy. This means you can concentrate more on what you do best; growing your business.
Instead of getting bogged down by numbers and financial statements, you can focus on strategic planning, marketing, and customer service.
This shift in focus can lead to better productivity and potentially greater success for your firm.
4. Scalability and Flexibility
One of the biggest advantages of outsourcing your firm’s bookkeeping services is the scalability and flexibility it provides.
This means you can adjust the level of service to match your business’s needs as they change.
If your business grows, the outsourced bookkeeping services can easily be expanded to handle the increased workload.
This flexibility ensures your bookkeeping is always aligned with your current operational requirements.
5. Reduced Risk
Moreover, you’re relying on individuals with a deep understanding of financial laws, regulations, and best practices.
These professionals stay updated on changes in the legal landscape, ensuring your financial operations are compliant and less susceptible to errors.
Moreover, reputable bookkeeping services invest in secure, state-of-the-art technology to protect your sensitive financial information from cyber threats.
6. Stress Reduction
When you hand over these complex tasks to experts, you’re free to focus on what you do best in your business.
You won’t have to spend long hours trying to balance the books or keep up with the latest tax regulations.
This way, you can dedicate more time to strategy, growth, and taking care of your clients.
How to Outsource the Right Bookkeeping Services?
1. Recognize the Need
Firstly, you should recognize the need for outsourcing when looking for the right bookkeeping services.
You’ve understood that your business has grown to a point where managing finances in-house is no longer the most efficient or effective approach.
Perhaps you’re spending too much time on bookkeeping tasks instead of focusing on core business activities.
2. Selecting the Right Provider
Next, start by looking for a firm with a solid reputation and extensive experience in your industry.
You should choose a provider who understands the specific financial challenges and regulatory requirements your business faces.
Make sure to check references and reviews from other clients to gauge the firm’s reliability and quality of service.
Clear communication and compatibility with your business culture are also essential to ensure a smooth, productive partnership.
Don’t hesitate to ask potential providers about their security measures, data protection policies, and the technology they use.
3. Evaluating Service Types
Bookkeeping services can range from basic transaction recording and financial statement preparation to more complex financial analysis and advisory services.
It’s important to match the service level with what your business needs. If you’re just starting out, you might need someone to handle the day-to-day numbers.
For more established businesses, looking into services that offer strategic financial advice could be the way to go.
4. Onboarding and Communication
When you find the right bookkeeping service, the next step is getting started with them, which we call onboarding.
It’s just a fancy word for setting things up and making sure everyone understands each other.
Good communication is key here. You’ll want to set clear expectations about what you need and when you need it.
Figure out how often you will talk to your bookkeeper and through what methods, whether that’s through emails, phone calls, or even video chats.
5. Review and Adjust
After you’ve chosen one and they’ve started working with your business, it’s essential to keep an eye on how things are going.
It’s not just about letting them handle everything without checking in. Schedule regular reviews to look at the financial reports.
If something doesn’t seem right or could be improved, don’t hesitate to discuss adjustments with the service provider.
Your business’s needs might evolve over time, so the bookkeeping services you require can change too.
What is the Difference Between Bookkeeping and Accounting?
The main difference between bookkeeping and accounting is their role and responsibilities; bookkeepers handle day-to-day tasks while accountants use these records to prepare financial statements, perform audits, and provide strategic financial advice.
What are some key differences?
– Educational Requirements
– Roles and Responsibilities
– Scope of Work
Bookkeeping
Bookkeeping is all about keeping track of money coming in and going out of a business.
Commonly writing down every financial move, keeping everything neat in ledgers, and ensuring all the numbers are stored properly.
While bookkeepers don’t need as much schooling as accountants; sometimes just finishing high school and being organized is enough.
Accounting
It is like taking the numbers game to the next level. Accountants look at all the numbers from transactions, then analyze, interpret, and change them into financial reports and statements.
These reports help businesses make important decisions. Besides making these reports, they handle tax planning, predict future finances, and manage audits.
If you want to become an accountant, you usually need a degree in accounting or finance.
Many accountants also get extra certifications, like becoming a Certified Public Accountant (CPA), to boost their skills.
Visit Virtual Assistant For CPA to outsource your tasks.
