What is Outsourcing?
Outsourcing is a business activity or practice in which certain functions or activities required by the businesses are being performed by outside service providers that can be done domestically or internationally. It helps the business to cut their additional cost and to work efficiently on their core competencies.
Hiring a bookkeeper to look after your book of accounts is the solution to the problem to your business. Certainly, they provide good reasons for bookkeeping to be outsourced.
- Saves money
- Maximization of resources
- Focused teamwork
- Options for scalability
- Prepared tax and audits financial reports
- Reduced software cost
- Reduce staffing cost
Want to Outsource Bookkeeping? Read the Basics
The right way to Outsource Bookkeeping
For business owners, handing over the books can sometimes feel tiring and exhausting. You’ll want to know the benefits of outsourcing, and whether it will bring the results you’re seeking.
It is an easy and cost-effective in comparison to having in-house accounting staff with lower risk and effective communication.
Employees of outsourced accounting firms are usually experts who undergo continual training in bookkeeping and accounting, as well as the latest technologies. This should give you peace of mind knowing that an outsourced team has the knowledge and skills to work successfully with you on your business financials.
- Make your need clear to the Bookkeeper: It is very crucial to inform your need and wants to bookkeeper and all doubts should be sorted so that it can help you to make informed decisions. It is very important to be transparent and truthful about the current state of your firm’s books so that it can be easily communicated with the bookkeeper.
- Establish communications, responsibilities, and check-ins with Bookkeeper: Different companies have different sizes, operations, and life cycle, this decides the nature of managing a company’s financial statement. Nature of the business decides whether to hire a Bookkeeper or an Accountant or Controller or CFO. They should have access to your systems to enter your data. Communication through email should be preferred or via Skype.
- Easy information transfer: Risks are involved in sending sensitive financial information through emails or any other source. A secure communication channel is required to manage documents.
- Review your financial statements regularly: Once you give charge to the Outsourced Bookkeeping service firm you should have a regular eye on what’s going on. Don’t forget to review both financial and management report to evaluate the company’s performance so that you can reach out to real insights for your company.
How to choose good Outsourced Bookkeeping Company for your business?
You should choose a Bookkeeping firm that has the following qualities and characteristics:
- Positive customer reviews: The best way to know how your bookkeeping service will treat you is to find out how they treat their existing clients. Search reviews online and finds out if they are providing the type of customer service you’re hoping for.
- Working experience of the company: Make sure you ask them plenty of good questions about the type of work they normally do and the type of client they normally serve. Are they new to the business? How long have they been working? What kind of industries do they normally serve? The right service will happily answer your questions.
- Standardised process and services: Make sure that the company that you are dealing with is providing the service that runs controlled set standards of actual accounting and equal preferences to your company’s book of accounts.
- Technology: Make sure that the company is updated with the latest technology and enthusiastic to adopt new technology whenever updated.
- Safety: Using cloud storage is much safer than any other method. Make sure Outsourced Bookkeeping Company uses cloud storage method so that your data is safely stored and easily recovered.
Have a look at the infographic below: