Outsourced Bookkeeping Services are one of the many types of bookkeeping which are preferred by several business owners to fulfill their bookkeeping needs. Hiring an outside bookkeeper to handle all your company’s bookkeeping needs is known as outsourced bookkeeping. A business can either entirely outsource the task, in which case they use their software and all you must do is pay for the service or employ an outsourced bookkeeper to work with the software you use.
In-house bookkeeper management is made easier by outsourcing, and there is no need to spend money on software to handle bookkeeping and accounting duties. The popularity of outsourced bookkeeping has grown over the past several years as more companies choose to concentrate on other areas of their operations rather than sweat about bookkeeping.
Tasks Performed by an Outsourced Bookkeeping Services
Simple to complex activities, such as creating financial statements and reporting, can be performed by an outsourced bookkeeper. Since many businesses still equate bookkeeping and accounting, it is advisable to inquire about the services that an outsourcing company provides rather than assuming. Ask the outsourcing company providing these services which specific duties the bookkeeper will be handling. The following are some of the services that an outsourced bookkeeping service provides, based on the typical definition of what a bookkeeper does.
- Integrate financial data: If you decide on the software package and a professional bookkeeper at the same time, the outsourced bookkeeper will oversee integrating your financial data with the program. To work on your behalf, he will import all the financial data. Bills, credit card bills, bank statements, and other documents might all provide him with this information. In some circumstances, the importation process is automatic since the accounts are linked to the software that the bookkeeper uses. If you choose an outsourced bookkeeper as your only option, he or she will become familiar with the software you use so that he or she can continue working on that platform and contribute to the accuracy of your transactions.
- Reconciliation: Bank reconciliation is classified as part of an outsourced bookkeeping service. This method is comparing the information on your business bank account or bank statement to the information on your bookkeeping records. Every firm needs bank reconciliation because it guards against fraud, keeps your books in order, facilitates audits, and identifies inconsistencies. Only the accrual method of accounting bookkeeping services will do the bank reconciliation. This is so that you can be certain that the bank transactions you recorded in your books were truly carried out.
- Tracking: Additionally, the outsourced bookkeeping service makes sure that tracking is done. This entails keeping track of created bills that must be accounted for. Have you repaid your provider when you said you would? After receiving the service, did your client use their credit card to pay on the scheduled date? As a business, it is your responsibility to make sure that everything you owe is paid on time and that you are compensated promptly for the goods and services you provide. An external bookkeeper can make sure that your accounts payable and receivable are managed to prevent overdrafts.
- Accuracy of Data: The primary responsibility of a bookkeeper is to ensure that all transactions have been appropriately recorded. That work is also handed to an outsourced bookkeeper who makes sure there are no mistakes. If they discover any mistakes, they immediately inform you of them. Additionally, they make sure that your books are always current so that you may confidently extract data from them without worrying about the accuracy of the information. This is something the bookkeeper regularly does to make sure every transaction recorded is accurate.
Benefits of Outsourced Bookkeeping Services
There are several benefits that a business can enjoy when they choose to outsource their bookkeeping needs. Some of the benefits are:
- Cost-Saving Accounting Services: In general, businesses view outsourcing as an extra expense that is therefore unneeded for their operations. This is not the correct impression. Quite the reverse, in fact. Given that most businesses can offer their services at cheaper costs, outsourcing typically results in significant savings. In addition, outsourcing allows you to avoid paying for full-time or part-time employees’ salaries, taxes, office supplies, and benefits. You just invest what you require. Hiring full-time personnel does not result in a loss in productivity expenses.
- Eliminate Time and Costs of Hiring Processes: If you examine the whole picture, you will see how difficult the hiring process is. Resources are needed, from developing a recruitment strategy to choosing candidates for interviews. The hiring procedure requires time and money from your company, and you will need to set aside this time for an employee or for yourself. Many businesses fail to account for the time they spend trying to find a qualified accountant. Additionally, expenses and time correlate equally. The cost savings of outsourcing corporate processes must be considered.
- Saving your Time: You’ll discover that as your company expands, you will spend less time scaling the company and more time managing your finances. So outsourcing office work, such as bookkeeping and accounting, allows you to concentrate your time, effort, and resources on formulating business plans. Along with networking and customer relationship building, it will increase revenue.
- Easy Scaling: The accounting service providers have the capacity to rapidly increase your services without experiencing any lag. For instance, if you have more bookkeeping and accounting chores than one employee can handle, you can easily be obliged to hire more help without having to go through a difficult hiring process. Additionally, hourly fees are also being charged by companies that offer accounting and bookkeeping services. It implies that you can adjust the hours up or down without any interruptions.
- Automation Technologies: To save time, most organizations employ accounting automation software. In addition to saving time, it also lowers dangers. Accounting automation reduces human error. Second, real-time reports are sent to accountants via automation software. They aid in identifying issues and solving them quickly. Additionally, it will lessen the likelihood of internal fraud. Many accounting service providers have extensive experience using automation tools like QuickBooks, Xero, and others. You are squandering time and money if your accountants are still exclusively using Excel files.
There are many benefits to hiring outsourced bookkeeping services for your business. To learn more about these benefits and how they can help your company, hire an outsourced bookkeeper, and see for yourself.