Bookkeeping can become pretty challenging and complicated once a business grows. Your in-house bookkeeper may not be doing enough to keep the process efficient and accurate, making it costly for your business. Such times may lead you to hire outsourced bookkeeping services. However, you may have your reservations and confusions regarding whom to select, what to outsource, cost allocation, etc. 

That is why we have prepared a detailed guide for you to consider while going for  accounting and bookkeeping outsourcing . It includes everything you would want to know to make the crucial decision. 

Benefits of outsourcing bookkeeping: 

  • Time-saving: Since you no longer have to perform bookkeeping by yourself, you save that time. You can invest it in other crucial operations to facilitate business growth.  
  • Minimum to zero errors: In-house bookkeeping has its shortcomings, including manipulations and mistakes. Outsourced bookkeeping services throw any chance of discrepancies and fraud out of the window because independent professionals help your business. They ensure the accuracy of the data and take responsibility for problems.  
  • Timely compliance: A company prepares its books with the core objective of filing tax returns. An outsourcing company does its job on time to avoid falling behind in filing reports with the authorities and complying with the regulations.  
  • Flexibility: As your business grows, outsourced bookkeeping services providers also offer scalability to match the business needs.  
  • Cost-effectiveness: While your in-house bookkeeper requires salaries, wages, benefits, training, and other necessary overheads, outsourced bookkeeping services are free from such charges. They include the service charges in a comprehensive package that is pretty affordable. Also, you do not have to spend time, money, and energy on recruiting a team of qualified bookkeepers.  

Services provided by an outsourced bookkeeper: 

  • Using advanced software to import financial information from bank statements, credit card statements, payroll records, invoices, etc 
  • Ensuring the accuracy of transactions by undertaking categorization and reconciliation activities 
  • Accounts payable and receivables management 
  • Keeping up-to-date and accurate books 
  • Preparing reliable financial statements, including balance sheet, profit and loss, and cash flow on a monthly, quarterly, or yearly basis 
  • Interpreting the complex numbers in the statements to facilitate decision making 
  • Financial reporting keeping in mind the needs of varied stakeholders 

The outsourced bookkeeping services provider may offer all or some of the services mentioned above. You can communicate your expectations with them and ensure alignment with their offerings before hiring.  

Working process of outsourced bookkeeping: 

Depending upon who you choose to hire as your outsourced bookkeeping services provider, they undertake the following steps: 

  • Set up or migrate: 

The outsourcing bookkeeper will assist you in implementing the software system. They will set up the integrations that suit your business’ needs and blend them with existing systems. They can also help you migrate from one system to another without any hassle. It allows the automatic extraction of data from all the sources into one central system that streamlines operations.  

  • Prepare books: 

The outsourced bookkeeping services provider will work with the technical system to record, categorize, extract, and reconcile financial transactions. You need not worry about your books as the outsourcing company bears every burden related to it.  

  • Sending prepared statements: 

Once the year or a specific period ends, or on the company’s demand, the outsourcing company will produce excellent and clean financial statements. You can ask them to customize these reports to serve a particular purpose.