Bookkeeping can be a headache for big and small business owners —so much so that 46% of business owners what is erp key features of top enterprise resource planning systems said it was their least favorite task. The process of recording all financial transactions is often challenging and stressful, as there are many other important day-to-day tasks for startup business owners to handle. It’s easy to put bookkeeping and other back-office tasks on the back burner. External accounting companies will have the most updated knowledge of security procedures and data protection standards.

1. As an addition, you get access to lower credit card transaction fees, pre-authorized debit transaction fees, and many other benefits.
2. We’ll also give you some key tips and insights into finding a provider and ensuring the process goes smoothly.
3. Virtual and outsourced bookkeeping and accounting services are a happy medium between do-it-yourself software and pricey in-house bookkeeping.
4. Playing the role of accountant probably wasn’t part of your business plan.
5. If you’re tired of doing your own bookkeeping, you should consider this option.
6. I help you scale by optimizing and automating your operations and systems through simple, proven, and practical tools.

Outsourced bookkeeping streamlines the financial management process and is much more efficient than traditional in-house bookkeeping. Doing the bookkeeping yourself is a time-consuming task, time that you most likely don’t have as a business owner. When you outsource bookkeeping, you will save valuable time that can be put back into improving your business in other ways. Outsourced bookkeeping services are a symbiotic relationship between your business and a third party that will balance your books. Though the process might look different for small vs. big businesses, the steps will generally be the same.

Types of Outsourced Bookkeeping Services

At Business.org, our research is meant to offer general product and service recommendations. We don’t guarantee that our suggestions will work best for each individual or business, so consider your unique needs when choosing products and services. FreshBooks comes with 2 basic plans to meet the needs of different business types and sizes. Whether you’re a small or growing business, you can benefit from FreshBooks’ top features without breaking the bank. There are 3 types of organizations that handle these types of services. When you use an external party, the process doesn’t include hiring, supervising, and onboarding expenses.

From there, you can add comprehensive accounting, payroll, and tax services as needed. Bookkeeper.com manages your accounts using QuickBooks Online (or QuickBooks Desktop, if you prefer). Plus, not every online bookkeeping service works with both accrual-basis and cash-basis accounting—but Bookkeeper.com does. To make important business decisions, leaders need access to timely, precise financial data.

Accounting Outsourcing: How to Hand off Your Financial Tasks (With Recommendations)

You should also specify what happens if the provider fails to meet any of these expectations. This could be anything from a partial refund for a late delivery, to termination of the contract in more extreme cases. Once you’ve established what you want to outsource, the next next step is to identify who you’re going to outsource it to.

How local bookkeeping works

When you go for a bookkeeping firm, you get some additional assurances not provided by solo bookkeepers. For example, a bookkeeping firm may hire professional bookkeepers with certifications. And if your current bookkeeper needs to take a leave of absence, the firm can replace them with another bookkeeper to fill the gaps. FreshBooks is an accounting software for small businesses, freelancers, self-employed professionals, and businesses with employees. The above reasons aren’t the only signs that you should outsource your bookkeeping. In general, the sooner you start with outsourced bookkeeping, the faster you’ll see its benefits.

Whereas outsourced bookkeeping and outsourced controller work largely follow a predefined framework, an outsourced CFO relationship can be anything you want it to be. You might also see outsourced accounting referred to using terms including Client Accounting Services (CAS) or fractional accounting. For the most part, these services are identical to outsourced accounting services, although it’s important to bear in mind that different providers will offer varying services. Essentially, you’ll give a third-party bookkeeper access to important financial information like bank statements, payroll, tax documents, and your accounting software. They’ll take it from there, generating financial reports, ensuring your ledgers are up to date, and tracking money that goes both in and out of the company, among other essential tasks. Yes, virtual and outsourced bookkeeping is just as legitimate as in-house bookkeeping and accounting.