Outsourcing bookkeeping not only saves critical time and resources but also allows firms to tap into the expertise of financial management professionals. If you don’t have the budget to hire someone in-house but want bookkeeping experts with quality control, outsourced accounting firms can provide some—or all—of your needs. One of the main differences between firms and freelancers is that the outsourced firms have likely already checked into their employees, providing you with a level of quality assurance. Because they are responsible for employing the bookkeeper, they can also provide continuity of services should a bookkeeper leave. Outsourced firms might also offer other services—like accounting or HR—allowing you to take care of all your outsourcing needs with one company.
- Primarily, businesses choose virtual bookkeepers or local bookkeepers.
- But one of the most important is reducing the strain and stress on your already tight resources.
- Even if you aren’t planning on growing any time soon, you need to have a sense of how much money is coming in vs. what is going out.
- For instance, when you get a Xendoo plan you also get perks like access to accounting software like QuickBooks and Xero.
- In this guide, we’ll walk you through the benefits and best practices for selecting the right outsourced bookkeeping service.
If you are a small business or a startup then you are probably not sure what all the various reports mean. The outsourced bookkeeper will explain what each report means so you can then base your business decisions upon that. The bookkeeper will go into detail so that you can understand your business’s current position and whether you need to change some things to ensure it does better than it is doing right now. The outsourcing service will also provide support so that you can ask them in case of any confusion. Partnering with an outsourced bookkeeping service streamlines accounting and finance across every element of your business.
Step 5 – Let the Bookkeeper Do the Bookkeeping
Bookkeeper.com manages your accounts using QuickBooks Online (or QuickBooks Desktop, if you prefer). Plus, not every online bookkeeping service works with both accrual-basis and cash-basis accounting—but Bookkeeper.com does. But there’s more than one virtual accounting company in the world, and solutions range from on-demand CFO services to simple pay-by-the-hour book balancing. Below, we review the best virtual and outsourced accounting services for small-business owners like you. These outsourced bookkeeping services act as your behind-the-scenes number crunchers—helping you cut costs, simplify paperwork, and leverage technology to streamline operations.
At the same time, bookkeeping is a relatively manual, labor-intensive process that takes up a significant amount of time. Organizing all of your business’s financial data into a centralized, accurate record is a monotonous task. Although technology has streamlined the process somewhat, bookkeeping remains a challenge for many business owners. In doing that, your outsourced accounting firm will work closely with you to develop an approach that works for your business. They’ll track KPIs that are important to you, provide regular financial reporting, and be responsive to your needs when you call with questions. Selecting an accounting service provider is a critical decision that can significantly impact the financial health of your business.
Why Do Businesses Use Outsourced Accounting Services?
Outsourcing your bookkeeping can better help you prepare for tax season and audits. Too often, we see small business owners and entrepreneurs scrambling to find what they need for their CPA. It becomes a tireless back and forth with their accountant, and they likely miss out on valuable tax deductions due to a lack of records. Outsourced bookkeeping can ensure outsourced bookkeepers that everything is carefully tracked and documented so that tax season floats by and you don’t even break a sweat. Provide higher-level accounting guidance to the Xendoo Accounting team. The ideal candidate for this role should possess a foundational understanding of accounting principles and practices and familiarity with QBO or Xero accounting software.
This doesn’t include employee benefits and taxes that you’ll have to cover. If your company can’t afford an additional salaried team member, it pays (literally) to outsource your bookkeeping. Having all of your bookkeeping together throughout the year will make tax season much easier. Up-to-date reports will be provided monthly throughout the bookkeeping process, giving you a good idea of how much you’ll owe when tax season hits. Bookkeepers can also help with tax preparation and can help you navigate your tax returns.
Time Savings
He will record your financial transactions and then categorize them in an organized fashion. He will then also perform a reconciliation process to ensure it all balances and there are zero discrepancies. The quality of your bookkeeping affects everything from your ability to raise external financing to the confidence with which you’re able to make forward-looking decisions.
- But for many businesses, the process of arriving at that point of financial clarity is lined with challenges.
- Some bookkeeping services can provide a full suite of bookkeeping, accounting and tax services.
- When you outsource bookkeeping, you will save valuable time that can be put back into improving your business in other ways.
- Second, freelancers are usually contracted workers who are hired to help balance your books, while firms are dedicated accounting companies that solely focus on that goal.
- With that, you can view your financial health, prepare for taxes, or plan for your business future at any time.
- This includes up-to-date reports as well as explanations to help you understand them better.
- That means you won’t get to spend as much face-to-face time with your accountant as you would if they were your employee.
When your bookkeeping service delivers the tax packet, the accountant won’t need to waste time looking for missing financial information or sorting inaccuracies. You can be confident that you won’t be leaving money on the table. One of the biggest challenges for any business is keeping up with the latest technology. As a business owner, you’re already stretched thin, and the last thing you want to do is spend your time and money trying to figure out how to use or pick bookkeeping software.
How Much Does It Cost to Outsource Bookkeeping?
This can improve your peace of mind that your bookkeeping needs are being well taken care of. The outsourced bookkeeping service will ensure you receive all the financial reports of your business on time. The statement of cash flows shows you actual cash and your liquidity. The profit and loss statement shows how profitable your business is and how much you are making over a period of time.
