Outsource Bookkeeping: 6 Benefits, Types & Process

In certain cases, the process of importing is automatic as the accounts are connected to the software that the bookkeeper works on. An outsourced bookkeeper is a person or company that will perform your bookkeeping tasks out of office. Oftentimes, a bookkeeping service is essential for business growth and health.

Here are some of the most common reasons business owners outsource their bookkeeping. Get ahead of the competition by changing your tax software to give your clients the best service possible. Consider everything that you do on a typical day during tax season and the rest of the year. Keeping a time log for one to two weeks can provide a better idea of your actual workload. Once you have tallied your responsibilities, go through the list and rank them by importance on a scale of one to five, with one for the most important and five for the least important.

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Our team of bookkeepers works with you virtually, no matter where you a located in the United States. For example, when you sign up with Bench, you’re paired with a team of professional bookkeepers who gather your data and turn it into tax-ready financial statements each month. Then, our platform lets you track your finances, download financial statements for your accountant, and message your bookkeeping team. A freelance bookkeeper or a firm will operate outside of your business—they’re not an employee. Try to find one that offers you secure, immediate access to your financial reporting in an accounting software you feel comfortable in. What if there is a bookkeeping software solution that is so simple that you can learn it from scratch?

Additionally, when you have accurate books, you can qualify for write-offs that will save you money when you go to file your taxes. Accounting uses the information your bookkeeper has gathered for you to determine the health of your business. An accountant will review the reports that a bookkeeper provides to help you make important financial decisions. What’s more, you’ll save money vs hiring an in-house, full-time bookkeeper.

• The balance sheet shows you the financial position as it throws light on the assets, liabilities, and equity.
• These guys set everything up remotely and execute all functions smoothly, without any hiccups.
• There is much to be said for doing the data entry yourself, categorizing the transactions, and meeting with the client to discuss any questions that arise during bookkeeping.
• But when you play your cards right, you can save on all 3 factors big time.
• There are 3 types of organizations that handle these types of services.

CPAs and similar organizations follow the best practices in the industry. They adhere to most standard procedures to remain high-quality service providers. When you use an external party, the process doesn’t include hiring, supervising, and onboarding expenses. Browse all our upcoming and on-demand webcasts and virtual events hosted by leading tax, audit, and accounting experts. By taking proactive steps for stress management, you can strive for your best at work and at home. Next, review the items marked as four or five and ask yourself if they’re things that you could hand off.

More on Bookkeeping

While outsourced bookkeeping can be great, it does carry a risk because your transactions are being handled and managed by someone else. 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. When it’s time to pay taxes, an online bookkeeping service can offer you a year-end financial package. This will include all the financial statements the accountant needs to file the small business tax return. Businesses can have access to qualified individuals with a technical understanding of accounting concepts and practices by entering into the world of outsourced bookkeeping.

Let’s take a look at some common outsourced accounting myths and explore how outsourced accounting service providers like our team at LBMC are addressing them to build a better client experience. This is not a complete list of benefits that businesses can expect when partnering with an outsourced accounting firm. Remote Books Online provides first-month bookkeeping services for free for your books and will do documentation of all transactions and essential journal entries.

Bookkeepers use an accounting journal or an online accounting program to keep track of each transaction and the purpose of the transaction. Bookkeepers also handle payroll and payroll taxes, send invoices, handle accounts payable and keep track of overdue accounts. Without a great bookkeeper, your company could be losing thousands of dollars each period.

Tax Services

When you give yourself a little more breathing room to run your business you’ll be surprised at how productive you could become. It’s also worth mentioning that if you hope to grow or scale your business, you won’t be able to without proper bookkeeping in place. You won’t believe how quickly you’ll be able to fill out all of your IRS forms if you have access to all of the correct information. When you started your business, you likely didn’t even think about this aspect of entrepreneurship. Bookkeeping is an extremely important aspect of running a business, however big or small the company is. How-to guides, tips and actionable advice on how to manage your BPO team like a pro.

Virtual accounting FAQ

If your company can’t afford an additional salaried team member, it pays (literally) to outsource your bookkeeping. Plus, full-time bookkeepers are experts in the field that can generate more thorough how a general ledger works with double-entry accounting along with examples reports and documents that take some pressure off your back once tax season hits. Outsourcing your bookkeeping can open the door to several benefits that could help you grow your business.

Outsourced Controller

Seamlessly hire global talent and teams via our vetted freelancers, traditional outsourcing, and direct placement–all while staying 100% compliant. Outsourcing your bookkeeping is cost-effective due to the savings on both the rates and the overhead. Without the need to bring internal employees in to fulfill these functions, your costs go down.

Then the outsourced bookkeeping firm will work with your business to understand your needs and goals. Next, they’ll provide a report detailing your financial performance every month or quarter. You’ll then have the opportunity to make any necessary changes before receiving the next report—and so on. If there’s ever something you’d like clarified or don’t understand, you can contact them for help. At LBMC, our mission is to support entrepreneurial businesses at every stage to go further.

Outsourced bookkeeping rates are similar to those that a contract bookkeeper charges, with an average monthly fee that ranges from $250-$2,000, depending on the complexity and transaction volume. Get the support you need with Bench, America’s biggest bookkeeping service provider. We connect with your bank accounts, credit cards, and merchant providers to automatically import transactions and update your financial reporting. If you need to chat about your finances, you can reach out to your personal bookkeeping team by message or schedule a phone call all within the Bench platform. You even get access to our tax professionals, who can advise you on minimizing your tax bill. Outsourcing bookkeeping is generally the path chosen by those businesses which either don’t want to invest in a bookkeeper, software, or both.