How to Outsource Your Bookkeeping ?
This is where you should look when you need help with outsourcing your bookkeeping.
The problem with small business owners is that they are usually a one-man show – handling operations, product development/service, marketing, networking, and a lot more; bookkeeping is often left unnoticed.
However, keeping correct and current accounting records is essential for strategic management choices and external organizational entities, such as shareholders, creditors, and other government agencies. If you do not keep proper books, you will have legal trouble that will come knocking on your door in many years to come.
This is where outsourcing your bookkeeping comes in handy. Outsourcing the financial data entry, reconciliation, reporting, and compliance means you will be able to concentrate on areas that will help in bringing in cash into the company.
Additional benefits include bookkeeping services:
Cost Savings
A bookkeeping firm assists you in achieving more in a short time while it would cost you very expensive to employ a professional in-house accountant. For instance, a contribution is only $1000-1500/month as compared to $4000+ for a comparable in-house person.
Access to Experts
Bookkeeper professionals hired from third-party service providers are mostly certified accountants, including Certified Public Accountants (CPA), with 5-10+ Years of working experience. They are abreast of the current ruling on the laws as well as adhering to the current standards.
Accuracy
Having proper methods or quality control checks from experienced bookkeepers guarantees accurate financial documents. This helps to prevent costly mistakes which tend to occur with learners or inexperienced users.
Data Security
Popular firms spend a lot of resources and funds in placing security measures such as firewalls, data encryption, and access control among others to safeguard your sensitive financial information.
Increased Efficiency
Bookkeepers can take advantage of the latest software which is well integrated with your other systems. This cuts out the need to undertake strenuous tasks manually, enhances efficiency, and also allows you to track your finances live.
However, the most important question of how to pick the right partner remains one of the most complex challenges facing organizations.
Since there is a high number of vendors who offer outsourced accounting services, sorting through them to get the best would be ideal.
Here is a checklist to evaluate potential bookkeeping partners:
- Experience & Specialization
Look for a firm that has at least 5 years of experience to ensure that they provide you with quality services. Opt for specialized experts whose exclusive specialization is in your line of business. Examine what clients have to say or any cases they have solved in the past.
- Cloud-based Solutions
Instead of asking for traditional accounting software installed directly on desktop computers, inquire about cloud-based ledgers. Of these, the former allows for a more integrated and synchronized flow, as well as timely transparency.
- Security Standards
Verify the current standards of data encryption, storage and access authorization, and audit records. Ensure infrastructure complies with certain security standards, for example, SOC2, PCI DSS, etc.
- Scalability
Determine whether the provider can easily meet your need for additional capacity or whether you will need to seek further help.
- Pricing
The make-to-order pricing strategy has been finalized and only the monthly, fixed pricing plans of the shortlisted vendors need to be compared. When it comes to choosing a company for your funeral services, do not go for companies that overcharge for each service.
Service Bundles
Know in detail what specific bookkeeping services are included in regular packages and which extra services may be offered by the company.
Software Integrations
Evaluate canned connections to other frequently used apps for small businesses to guarantee smooth information exchange.
How to Use Outsourced Bookkeeping Correctly
Follow these steps for a smooth transition:
1. Set Expectations
Schedule a meeting with the short-listed partner and have an extensive discussion on each of the exact deliverables, the timeline for the project, the measurable goals that are expected to be met, and each of the responsibilities that the parties will have.
2. Clean Up Your Books
Before the offboarding process, need to close previous extraordinary works, get the correct account balances, and collect all files and documents. This eliminates future complications.
3. Centralize Financial Data
Relocate all the accounting and tax information to cloud-based accounts and limit access to only a few staff. Synchronize to erase previous license agreements for software that are no longer in use.
4. Formally Onboard Vendor
In their formal handing over of responsibilities, businessmen and women should ensure that contracts are signed specifying payment terms, quality requirements, and other legalities such as confidentiality agreements.
Post-offboarding, establish planned check-in calls to discuss the evolution, issues, and/or modification of procedures where necessary.
The Bottom Line
Therefore, outsourcing your bookkeeping will ease you the heavy burden of administration since you concentrate on your main business. Hence, it lies in its selection procedure – choosing an experienced industry specialist who operates with today’s cloud-based tools. They will give you all the financial reports that you need to grow your business at a very fast rate provided you have a good working relationship with them through a smooth transition plan as well as frequent communication.
Well, I’ll tell you what you’re waiting for So what are you waiting for? You’ve been saying that you want to outsource it for a while now and now is the best time to do it. Please do not hesitate to contact us even if you only require help in your search for the right bookkeeping firm or if you have further questions regarding the process.
Contact us here for Bookkeeping services now!