Everything You Need to Know About Outsourced Bookkeeping


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Once the system is up and running, it’s essential to allow the new bookkeeper to do their job. Don’t worry about financial reporting, payroll taxes, accounting tasks, or offline vs. online bookkeeping. You have made your choice, and now it’s time to enjoy having a dedicated account manager and bookkeeper do the job for you. For instance, the average salary of a Certified Public Accountant (CPA) in the United States is around $70,000 per year. Add to that a tax specialist, whose average salary is approximately $80,000 per year, and perhaps a financial analyst at $85,000 per year. You’re looking at a total annual salary cost of $235,000, not including benefits and overhead.

Seamlessly hire global talent and teams via our vetted freelancers, traditional outsourcing, and direct placement–all while staying 100% compliant. With payroll outsourcing, you can pay your staff correctly and on schedule, while keeping tabs on how your funds are disbursed properly. Thanks to specialized bookkeeping SaaS and optical character recognition (OCR), remote bookkeepers can work with physical receipts or documents. The downside of working with a bookkeeping agency is that they are generally more expensive and you will likely be required to enter into a long-term contract, which could be up to a year. If you have any questions or doubts regarding bookkeeping, then the bookkeeper is available to you. This helps you work alongside the bookkeeper so you, your team, and the bookkeeper are on the same page.

  • Outsourced, virtual bookkeeping can cost as little as $150 per month and as much as $900 (or more) per month.
  • Overseeing Accounts Payable also involves ensuring cash flow statements are accurate, so you always have an understanding of how much money you have in your accounts to pay bills.
  • Then, our platform lets you track your finances, download financial statements for your accountant, and message your bookkeeping team.
  • With hundreds of options, however, it can be daunting to sort through them all and find the best service for your business.
  • This includes systematically classifying income, expenses, assets, and liabilities.
  • Partnering with an outsourced controller gives businesses many of the same benefits as partnering with an outsourced bookkeeper, but on a more strategic level.

You might also fall behind on the books or struggle to deeply understand cash flow or track accounts receivable and payable. As your business grows, however, there’s often less time to manage the books. If that’s the case, it may be time to engage a professional and outsource your bookkeeping or all of your accounting to better manage your business. Highly skilled and experienced in US tax legislation and accounting standards, our qualified accounting professionals work on the latest accounting software to deliver service excellence.

Data Security

If your A/P isn’t accurate and on time you face ruining your business credit, pay additional late fees, and potentially hurting your trading terms with vendors and supply chain partners. Overseeing Accounts Payable also involves ensuring cash flow statements are accurate, so you always have an understanding of how much money you have in your accounts to pay bills. Therefore, considering cost efficiency and the standard accounting or bookkeeping fees of these services is a vital aspect of knowing when to outsource. If you’re losing money on this service, it could be in your best interest to pass on external hiring. However, if you can find accounting or bookkeeping services that can save you time, stress, and overall resources, it could be a perfect fit. Outsourced bookkeepers can be hired on a contract basis or as full-time staff members.

Their standard pay, according to Salary.com, ranges from $39,568 and $50,577 per year—before taking into account payroll taxes and employee benefits. That can be a lot if you simply need someone to perform bank reconciliations and forecasting. Full-time, in-house bookkeepers are really for businesses with advanced needs. Having a virtual bookkeeper means that someone else does the books on your behalf online.

In-house bookkeeping often relies on the skills and knowledge of one or a few individuals, which can be limiting. The expertise required to navigate complex tax codes, manage cash flow, and produce insightful financial reports is not easily found in a single in-house bookkeeper. On the other hand, outsourced bookkeeping services typically employ a team of certified accountants, tax specialists, and financial analysts, each with their own areas of expertise. Outsourcing bookkeeping services can enable CPAs and accounting firms to expand their range of services, offering more comprehensive financial management solutions to their clients.

The Essential plan ($249 a month if billed annually or $299 billed monthly) focuses on bookkeeping only, giving you access to a dedicated team that performs monthly bookkeeping services. The Premium plan ($399 a month if billed annually or $499 billed monthly) adds tax advising services, end-of-year tax filing, and financial strategy planning. When it’s time to pay taxes, an online bookkeeping learning curve 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. Time is a valuable asset in business, and inefficient bookkeeping can be a significant time drain. The average in-house bookkeeping department can take up to 5-10 hours per week just for basic tasks like payroll and invoicing.

Tax Season 2024: How Tax Outsourcing Services are …

By establishing clear responsibilities and expectations upfront, you can ensure that you and your provider are on the same page, leading to a more efficient and effective working relationship. Analyzing these pricing models is crucial to ensure you get the most competitive deal for your business that fits your budget without sacrificing quality or expertise. For agencies, you can do this by reviewing online reviews and ratings, which can provide insight into the experiences of other clients.

Save You Time and Money

The last option is to work with a dedicated outsourcing company (like Magic). A modern outsourcing partner is a great choice if you want flexibility and a seamless process. They do all the heavy-lifting of finding the perfect hire without you having to sort through individual resumes, while also offering support and customer service as your needs change.

Even if you aren’t planning on growing any time soon, you need to have a sense of how much money is coming in vs. what is going out. On top of that, you need the data used in bookkeeping to file your taxes accurately. Bookkeeper360 is best for businesses that occasionally need bookkeeping services as well as those that want integrations with third-party tools. Monitoring the progress and performance of your outsourced bookkeeping provider is crucial to ensuring the partnership’s success.

What Bookkeeping Services Should You Outsource?

Don’t be tempted to pay for more services than your business needs at the moment. If you expect to grow, finding a service provider that can offer more services as your needs change may be beneficial. When evaluating an outsourced bookkeeping provider, assessing their reputation is crucial. Sharing financial information with an external entity introduces potential security risks when outsourcing bookkeeping. Choosing a provider with robust data security measures, including encryption protocols, secure data storage, and compliance with industry regulations, is vital. Additionally, implementing appropriate confidentiality agreements and regularly reviewing security practices can help mitigate risks.

Katherine Haan, MBA is a former financial advisor-turned-writer and business coach. For over a decade, she’s helped small business owners make money online. When she’s not trying out the latest tech or travel blogging with her family, you can find her curling up with a good novel. A small business can likely do all its own bookkeeping using accounting software. Many of the operations are automated in the software, making it easy to get accurate debits and credits entered.

Get Your First Month of Bookkeeping for FREE!

Because an outsourced bookkeeper isn’t immersed in your business the same way an internal employee would be, there may be some intricacies of your business that they don’t understand at first. It’s important to find an outsourced bookkeeping partner that will invest the time required to truly get to know your business. Outsourced bookkeeping providers often offer standardized packages and services that may not fully align with your unique business requirements. While they provide a range of services, there might be limitations on customization or flexibility.

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. One of the most prominent advantages of contracting an outsourced bookkeeping company is that an expert analyses your accounts. When you choose to outsource your bookkeeping to a professional firm, you can rest confident that all of your books will be kept up to date.

That means you won’t get to spend as much face-to-face time with your accountant as you would if they were your employee. If you’re bringing in an outsourced controller to help manage your existing team, it’s necessary to carefully consider what this relationship will look like. If you’re the type of person who likes to shake someone’s hand and look them in the eye, the remote nature of outsourced accounting may require some adjustment.

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