Outsource Bookkeeping is help that gives a full, bookkeeping division experience for private companies. A bookkeeping office handles the everyday exchange coding, creditor liabilities, money due, finance, the board monetary detailing, and numerous different administrations.
Now comes the hard part: recording all your transactions. You might be a little scared about tracking all transactions. However, outsourcing bookkeeping will make it much easier.
The million-dollar question is: Who will you hire to do this for you?
There are two options. You can either hire local bookkeepers or hire virtual bookkeepers. You can also hire an in-house bookkeeper, but this is more expensive than DIY.
Let’s look at the advantages and disadvantages of outsourcing bookkeeping so that you can get rid of the tedious work of Quickbooks and spreadsheets and have someone else do it for you.
Why should I outsource my bookkeeping?
No one starts a business to do their bookkeeping. You can now focus on your business, identify new growth opportunities, or just relax from the stress of entrepreneurship with outsourced bookkeeping.
Outsourced bookkeeping gives you access to all the financial reports and statements that every business owner needs: balance sheets and income statements.
A professional can help you expedite the tax filing process by taking care of your bookkeeping. With IRS-compliant reports, you’ll be able to quickly fill out forms and prepare your tax return.
What are the best times to outsource bookkeeping?
There are usually a few signs that you need to hire a professional If:
- Do-it-yourself bookkeeping can take up more time than your budget allows
- Your books are not up-to-date
- You have missed tax write-offs
- It’s difficult to keep your cash flow in check.
- You are having difficulty tracking your accounts receivables and payable
- It’s now a hassle to make your estimated taxes
Do you not see your situation in the above list? This is not a complete list. You will need to look for indicators that you should hire a bookkeeper. Only you can tell when it is time to outsource.
It’s better to start sooner than later for most business owners. Even pre-revenue businesses need bookkeeping. Consistent recordkeeping is essential as you grow your business.
Different types of outsourced bookkeeping services
Outsourced bookkeeping services can be used by anyone, whether you are working with someone close to you or having someone do it online.
We’ve broken down both the pros and cons to help you decide which one is best for you.
Hiring a Bookkeeper
Local bookkeepers are people or teams that work near your business. If:
- You value meeting your bookkeeper face-to-face
- To run your business, you rely on physical records. You don’t use Stripe or online banking.
- How does local bookkeeping work
- There are generally two options for outsourcing your bookkeeping to a local professional: a freelancer or a company.
To help you get your books done, a freelance bookkeeper will work with you one-on-1. You may have the option to hire a freelance bookkeeper who can work remotely, at your office or both. Solo practitioners can have different levels of skill and experience.
The second option is to hire a bookkeeping company. A firm will usually charge more than a freelance bookkeeper. They offer “assurances” that solo bookkeepers cannot, however. Their bookkeepers might be certified professionals. You don’t need to worry about service gaps if someone is handling your books and they have to go on leave.
An independent bookkeeper or firm will work outside your company. They are not employees. Find one that gives you immediate, secure access to your financial reports in an accounting program you are comfortable with.
Security is another important aspect. You must be able to trust the person you choose to manage your company’s financial information. This includes bank and credit card information as well as invoices and other important documents. Never give your bookkeeper control over your treasury functions. You should be the only one signing checks and handling investments.
Virtual bookkeeping
Although the term “virtual bookkeeping” sounds a little dated, it refers to a popular paper-free way of managing your books.
Virtual bookkeeping just means someone else doing your books for you, online.
Virtual bookkeeping is a combination of traditional bookkeepers and bookkeeping software. You can hire virtual bookkeepers to manage your books and use software to track your finances. If you are:
- Online banking allows you to bank securely and comfortably online
- Do you prefer a flat monthly rate to hourly billing?
- Mobile app for online access to financial information
- Do you prefer to chat online or over the phone, rather than in person?
- Professionals will help you save time and provide peace of mind. Online service allows you to securely store your data in the cloud and have access to your financial information from any location, at any time.
What virtual bookkeeping looks like
You can connect with real bookkeepers through virtual bookkeeping via an online account. The best service will automatically download your expenses through online banking. It will also send them through your merchant processing so that you don’t need to mail receipts.
An online bookkeeping service might also offer a year-end package that includes all the financial statements your accountant will need for your small business tax return.
Bench pairs you with professional bookkeepers to gather your data and create tax-ready financial statements every month. Our platform allows you to track your finances and download financial statements for accountants. You can also message your bookkeeping team.
In-house vs. virtual bookkeeping
These are some of the options available to you when outsourcing business bookkeeping.
Local bookkeeper
Excellent fit if you:
- Your business has less revenue than $ 1 million and fewer employees than 5.
- You need physical records to manage your business, or you want to meet with your bookkeeper in person
- You are prepared to pay bills that change from month to month (due to hourly billing).
Benefits:
- Local bookkeepers are skilled in paper-based record-keeping
- Freelancers can be flexible in how they work, whether visiting your office or communicating online.
Virtual bookkeeper
Excellent fit if you:
- Your business has less revenue than $ 1 million and fewer employees than 5.
- Online banking is available
- A flat monthly fee is preferable to an hourly charge
- You need instant access to your finances on the move.
Benefits:
- This software allows you to operate a paperless office
- Instant online communication
- Both software and human bookkeepers are available.
- A team will do your books, with no service delays when your bookkeeper is away or sick.
In-house bookkeeper
Excellent fit if you:
Your company has over $1 million in revenue and more than 30 employees
Benefits:
- A more efficient way to manage the books of a larger company
- The bookkeeper will answer directly to your questions.
Conclusion
Basically, by rethinking your accounting tasks, you get a good deal on paying all-day or part-time wages and advantages to a worker. Further, you additionally save money on lost efficiency costs that show up with recruiting representatives onto the finance.
