Why should you outsource your bookkeeping?
![bookkeeping](https://binbex.org/wp-content/uploads/2024/03/unnamed-26.png)
Bookkeeping is a major headache for both small and large business owners. In fact, 46% of owners stated that it was their least favourite task. Recording all financial transactions can be a stressful and difficult task, especially for new business owners who have many other daily tasks to complete. Bookkeeping and back-office tasks are easy to push aside.
Accounting and bookkeeping are no longer the sole responsibility of business owners. Bookkeeping Outsourcing is becoming increasingly common as businesses try to avoid the tedious task of keeping track of financial transactions. We’ve created a guide on outsourcing bookkeeping to help you navigate your options.
What is the role of a bookkeeper?
Bookkeepers are able to get down to the details of your daily transactions. A certified public accountant will be able provide you with insight and analysis on your financial data. The bookkeeper is responsible for recording all financial transactions and statements made by an organization. Bookkeepers perform all the necessary functions to allow the accountants to complete their work at the end each period.
Accounting journals or online accounting programs are used by bookkeepers to track each transaction, including the purpose. They also manage payroll, payroll taxes, invoices, accounts payable, and track overdue balances. These seemingly small tasks are combined to create a big job. Your company could lose thousands of dollars every period without a good bookkeeper.
What is Outsourced Bookkeeping?
Outsourced bookkeeping is when a bookkeeper performs your bookkeeping outside of the office. A bookkeeping service can be essential to the growth and health of a business. This allows everyone to focus on their tasks in the office and eliminates the need for an in-house team of bookkeepers.
You’ll essentially give a third party bookkeeper access your important financial data, such as bank statements, tax documents and payroll. The bookkeeper will then take over, creating financial reports, updating your ledgers, tracking money coming in and going out of the business, among other important tasks.
What is the process of outsourced bookkeeping?
Outsourced bookkeeping is a mutually beneficial relationship between you and a third-party that balances your books. The steps are the same for both small and large businesses.
- Your accountant has access to all your financial software and accounts.
- Your accountant will be working behind the scenes, balancing your books, monitoring cash flow and creating financial reports.
- Your accounting team will send you a monthly financial report.
Outsourcing bookkeeping has many benefits.
Outsourcing bookkeeping will save you time and money. Full-time bookkeepers have a wealth of knowledge and can produce more detailed reports and documents, which will relieve you from some stress during tax season.
1. Enjoy your free time
Outsourced bookkeeping is more efficient and streamlines financial management than traditional in-house accounting. It is time-consuming to do the on your own. As a businessman, you probably don’t have that time. Outsourcing bookkeeping allows you to save time, which you can use in improving your business. Read More: motosas
2. Saving money
Outsourcing your bookkeeping will save you money. Bookkeepers with experience are better able to find overdue clients or areas where your company can make cuts in order to increase profits. Outsourcing a bookkeeper can be more cost-effective, as you are not their employer. You don’t need to worry about insurance, training, or benefits.
Imagine this: the average US bookkeeper earns about $38,000 per annum. If you spent $2,500 per month on bookkeeping, your company would save about $8,000 per year.
3. Reduce errors
It is well known that having a service provider outsource their work can reduce the number of common mistakes made by business owners. Modern can be done using a cloud-based, automated system. This allows you to see your records and those of other experts at any time. Outsourced bookkeepers have a high level of training, so no need for an adjustment period. You can have peace of mind knowing that your bookkeeping is being taken care of.
4. Reports should be thorough
Professional produces more detailed financial reports than traditional in-office bookkeeping. Online bookkeeping is a virtual platform, so business owners can access their records at any time, including the balance sheet and cash flow. You can access every single transaction at any time.
5. Tax season made easier
Tax season can be stressful. Tax season will be much easier if you have all your bookkeeping in order throughout the year. Monthly reports are provided to keep you informed of your tax liability. Bookkeepers are also able to help you with your tax returns and prepare them.
What is the cost of an outsourced bookkeeper?
GrowthForce estimates that the cost of outsourcing your can range from $500 up to $2,500 per monthly. Costs are largely determined by the complexity and number of services required. The cost of these services will scale according to the size and complexity of your business. Small businesses will therefore pay less for them than large enterprises.
Outsource your bookkeeping
When outsourcing bookkeeping, you have to make a few choices. Most notably: local vs. Virtual and freelancers vs. firms. Each option has pros and cons, depending on what you want from an accounting service.
Choose your format
Virtual bookkeeping, on the other hand, is a service that can be provided digitally.
- Local: You prefer to work with paper records and meet people in person. You also want to perform bookkeeping services using physical documents.
- Virtual: You have a good understanding of technology, are comfortable communicating virtually and can process payments and financial statements online.
Select your workforce
Firms, on the other hand, are accounting firms that are solely focused on this goal.
- Freelancers: These are individuals who work independently for your business, but do not work on your payroll or in an accounting firm.
- Accounting firm: An accounting company is a financial service agency that assigns a team to your account.
What is the best route for you?
- An agency is a better choice if you need to work on a large number of financial documents, and if communication and frequent work are required.
- A freelancer will be able to complete your simple accounting tasks.
Companies and freelancers are local or virtual. However, most companies will choose a virtual system.
Interview candidates for freelancers or agencies to find out if they are the best fit. Choose someone who you can trust with your sensitive financial data and who will accommodate your needs.
How Fin-Ex can help
Fin-ex Bookkeeping is an online service for small businesses that provides QuickBooks-certified virtual bookkeepers. This allows you to spend more time on your business and less time worrying about your books. If you are looking for a bookkeeper who is dedicated to your success and that of your business, then schedule a complimentary bookkeeping consultation with Fin-ex Bookkeeping and find out if it’s right for you.