Outsource Bookkeeping for Small Businesses

By Kaleem Ulah

May 20, 2024

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Accounting and bookkeeping services are important for small business owners. But it costs a lot to hire accountants or bookkeepers full-time. That's why business owners, especially small business owners, need to know how to handle their finances in a way that works and doesn't cost a lot. So, there is only one choice. Small business owners need to hire someone else to do their books. It helps to make the business tasks easier. It also helps the owner and managers focus on the most important tasks. So, hiring someone else to do your paperwork is a cheap way to get the best results. In this piece, we will talk about everything you need to know before hiring someone else to do your bookkeeping. Let's go!

Benefits of Outsourcing Bookkeeping for Small Business

There are so many options to getting your business bookkeeping done. However, outsourcing has proven to be one of the best. Check out the top benefits of outsourcing bookkeeping for small businesses in the following paragraphs.

Benefits of outsourcing bookkeeping for small business

1. Use a cloud-based accounting software

The big contracting companies only have websites where they do business. It helps them handle the work well and make processes more efficient. A cloud-based system handles all your tasks, so you can get your info anywhere. Because it's in the cloud, you and your bookkeeping company can look at records whenever you want. Because of this partnership, the company can quickly enter your monthly income and expenses. It makes it easy to see your money and any new activities.

2. Reduce mistakes

Several things can go wrong with bookkeeping or accounting services. A bookkeeper who is new to their job is more likely to make mistakes. You expect your new in-house bookkeeper to make mistakes at first, even if they are very experienced. Bookkeepers need a certain amount of time before the numbers are completely correct. When you hire someone else to do your paperwork, you'll already have a team with the necessary skills. The team will monitor your money with automated bookkeeping tools and use their skills to fix any problems.

3. Keep up with rules

Understanding business finances is important because laws and rules always change. Even CPA firms with many financial experts find it hard to do this. Just imagine how hard it would be for a small business. You don't have to worry about rules that always change when you hire someone else to do your accounting and paperwork. The company you hired to do the work for you will take care of this extra work.

4. Newest technologies

Companies that are growing stay ahead of the competition when they grow. Keeping up with the latest accounting technologies is a key way to stay ahead of your rivals. You can be sure that your finances are up to date if your business has access to the most recent tools. One benefit of outsourcing your accounting is using the newest technologies. In addition, your outside service provider will take care of maintaining your equipment.

5. Precision and efficiency

CPAs and accountants who work for foreign accounting firms will have a lot of experience in this field. They will be able to find silly mistakes and mistakes that are easy to miss. With their knowledge, they will also be able to handle books and accounts that are missing information, records, etc., without making any mistakes. They are taught how to work even when stressed or under pressure. Because of this, you will always get great accuracy and speed when managing your business's money.

6. Focus on business

When you hire many experienced accountants, you can focus on your main business with all your energy and resources. When you hire the best company to do your accounting and bookkeeping, you don't have to worry about keeping the books, doing taxes, making sure payroll is done on time, etc. Focus on making your business bigger, better, and more successful. 

7. Help with operations

Information that helps you run your business well doesn't just appear out of nowhere. To streamline processes and improve finances, you need a lot of knowledge. Operating support is a service that looks at how you do things now and helps you set up new systems and ways of doing things that will make your financial operations run more smoothly. Setting up new systems and tech apps, describing processes and procedures, reviewing internal controls, creating financial reports and dashboards, and offering ongoing training and support are all examples of operational support.

You can also get help with operations to find the best online accounting tools for your small business. The best company that outsources accounting services will help you get the most out of the technology tools you already have and add new ones when it makes sense.

8. Quality services

Cheaper prices don't always mean that the service is worse. Even though you'll save money, you can still hire professional bookkeepers for your business needs.  When you hire someone to do the bookkeeping for your small business, you can be sure that they will be fully committed to it, get ongoing training, keep up with new trends, and have a history of helping businesses like yours.

9. Time

Hiring full-time accountants might not make sense if you don't do many transactions, which is usual for small businesses. When you hire someone else to do your bookkeeping, you get the right amount of time to focus on your business. Your outsourced bookkeeper doesn't need any changes from you as your business grows or during busy times. When you outsource your accounting for a startup, the professionals will make all the necessary changes to meet your needs.

10. Cuts down on running costs

Hiring full-time or part-time bookkeepers costs more, but outsourcing lets you avoid that cost. A full-time bookkeeper costs between $35,000 and $55,000 a year. When you hire someone else to do your taxes, you only pay for the services you need. This helps your company make 40% to 60% less money overall.

There are more costs than just accounting services that come with hiring someone. Insurance, training, perks, and hiring new employees are other costs. A bookkeeper will need to be trained by someone in your business. Someone will need to cover the bookkeeper's sick days and breaks. Outsourcing bookkeeping is cheaper when you add up all the costs of hiring people. You can use the money you would have spent on bookkeeping to pay other workers instead. If you own a shop that fixes cars, hire more drivers. This will cut down on wait times and make things run more smoothly.

Conclusion

It may not look like a big deal to do the accounting, budgeting, and financial management for a small business, but it is. It's a very difficult business task. Along with dealing with busy times, new rules, and getting the best tech tools, one has to keep up with many other tasks. Putting together your team of accountants instead of hiring outside help for accounting and bookkeeping can come with several risks, which are talked about in this piece.

But for small businesses, hiring the best bookkeeping services can be the smart thing to do. Not only does it take away the stress of finding the right people, but it also makes managing money less stressful. Hiring someone else to do your accounting and paperwork has a lot of benefits. The biggest benefit is getting the best and most accurate services in the time allotted without using too much energy or in-house resources.

The Kalculators help businesses do their bookkeeping tasks better every day. We offer a fresh, new take on accounting services like bookkeeping, cash flow forecasts, outsourced CFO, and more, no matter how old or new your small business is. As a company, we want to form relationships with all our clients to make their lives easier and give them all the information they need to make better business decisions.

Frequently Asked Questions

Why would a small business consider outsourcing bookkeeping?

Small businesses often outsource bookkeeping to reduce costs, improve accuracy, and free up time and resources to focus on core business activities. Outsourcing can also provide access to professional expertise and specialized accounting software without needing in-house training or hiring additional staff.

What services are typically included in outsourced bookkeeping?

Outsourced bookkeeping services can vary depending on the needs of the small business but often include tasks such as accounts payable and receivable management, bank reconciliation, payroll processing, financial reporting, tax preparation assistance, and financial analysis.

How does outsourced bookkeeping work?

Small businesses provide financial information and documents to the outsourced bookkeeping service, either electronically or physically. The bookkeeper then records transactions, reconciles accounts, prepares financial reports, and communicates regularly with the business owner or management to provide updates and insights.

Is outsourced bookkeeping secure for small businesses?

Reputable outsourced bookkeeping services use secure methods to handle sensitive financial information, including encryption, secure data transfer protocols, and strict confidentiality agreements. Small businesses need to choose a trusted and reliable service provider with a proven security and confidentiality track record.

How much does outsourced bookkeeping cost for small businesses?

The cost of outsourced bookkeeping can vary depending on factors such as the size and complexity of the business, the scope of services required, and the service provider's pricing structure. Some charge hourly rates, while others offer flat monthly fees. Small businesses need to compare quotes and consider the value provided by each service.

What are the benefits of outsourcing bookkeeping for small businesses?

Outsourcing bookkeeping for small businesses offers several benefits, including cost savings by eliminating the need for in-house staff and infrastructure, access to professional expertise and specialized software, improved accuracy and compliance with accounting standards, and more time and resources to focus on growing the business.

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About the Author / By Kaleem Ulah

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Kaleem is CEO & Author at "The Kalculators". With more than 10 years of experience in financial services, He built Kalculators to transform your financial challenges into strategic triumphs!

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