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Small businesses often have trouble managing their finances in today’s business world. Maintaining accurate financial records is crucial, but it can also be intricate and require a lot of time, particularly for business owners managing several tasks simultaneously. That’s where outsourced bookkeeping comes into play. By delegating this critical function to a professional team, you can save time, reduce errors, and focus on growing your business.
This blog will explain everything you need about outsourced bookkeeping services and how they work for small businesses. Whether you’re new to outsourcing or want to refine your current strategy, this guide covers everything.
Table of Contents
What Is Outsourced Bookkeeping?
Outsourced bookkeeping is hiring an external company or professional to handle your business’s financial record-keeping. Instead of managing these tasks in-house, a third-party outsourced bookkeeping company handles your financial statements, accounts payable and receivable, payroll, and more.
With the help of a professional outsourced bookkeeping service, businesses can ensure accuracy in their financial data, maintain compliance with tax laws, and generate critical reports needed for decision-making. The best part? Outsourced bookkeeping firms use advanced accounting software to automate much of the process, making it more efficient and less prone to human error.
What Does Outsourced Bookkeeping Do for Your Small Business?
When you outsource bookkeeping for your small business, you hand over several key responsibilities, such as:
- Tracking Expenses and Income: An outsourced team ensures that all transactions are properly logged, categorized, and reconciled.
- Financial Reporting: By doing your financial reporting, you can access regular financial reports, including income statements, balance sheets, and cash flow statements.
- Payroll Management: Timely payroll processing, including compliance with state and federal laws, becomes easier.
- Tax Preparation: Your outsourced team assists with preparing tax documents and making sure you’re tax-compliant throughout the year.
- CFO Services: Many companies offer CFO services that provide strategic financial advice and support.
Outsourcing your bookkeeping gives you access to a full team of professionals without the overhead cost of hiring an in-house bookkeeper.
Benefits of Outsourced Bookkeeping for Small Businesses
| Benefit | Explanation |
| Time-Saving | Allows you to focus on core business activities |
| Expertise | Access to experienced professionals with specialized knowledge |
| Cost-Effective | Saves costs on full-time salaries and benefits |
| Improved Accuracy | Minimizes errors with expert handling |
| Compliance | Ensures adherence to tax laws and financial regulations |
Why Should You Outsource Your Bookkeeping?
1. Cost-Effective Solution
For small businesses, hiring a full-time in-house bookkeeper can be expensive. Outsourcing provides you with the expertise of a team without the additional costs associated with salaries, benefits, and office space. Many outsourced bookkeeping companies also offer flexible pricing structures, allowing you to pay only for your needed services.
2. Focus on Core Operations
Bookkeeping is essential but time-consuming. You and your team can focus on running and growing your business by outsourcing this function. Whether launching a new product or scaling operations, your attention should be on your business, not the books.
3. Access to Advanced Tools
Outsourcing firms use cutting-edge accounting software to streamline processes. Small businesses often don’t have the budget to invest in premium tools like QuickBooks, Xero, or FreshBooks. With outsourcing, these tools come as part of the package, ensuring your books are always in order.
Also Read: Signs to Outsource Bookkeeping Services
What Should You Consider Before Outsourcing Your Bookkeeping?
Before jumping into an outsourced bookkeeping solution, here are a few things you should think about:
- What Services Do You Need?: Some businesses need full-service accounting, while others just need bookkeeping services. Understand your requirements before selecting a provider.
- Experience in Your Industry: Does the bookkeeping company have experience with your specific business type? For example, accounting for an e-commerce store differs from bookkeeping for small businesses in manufacturing or services.
- Technology Integration: Ensure the outsourced firm uses software that integrates well with your existing systems. Smooth data flow between your operations and their services is key for effective management.
- Confidentiality and Security: You’re handing over sensitive financial data, so ensure the company has strong privacy policies and secure data handling systems.
How Much Does Outsourcing Bookkeeping Cost?
The cost to outsource bookkeeping for small businesses varies depending on several factors, such as:
- Volume of Transactions: Businesses with higher transaction volumes will need more services.
- Level of Services: The cost will increase if you outsource payroll, tax filing, or CFO services.
- Frequency of Reporting: Some businesses need weekly reports, while others only require monthly or quarterly statements.
Generally, small businesses can expect to pay between $500 and $2,500 monthly for outsourced bookkeeping and accounting services. Before committing, getting a clear breakdown of the service package’s contents is crucial.
How Profitjets Helps With Outsourced Bookkeeping Services
At Profitjets, we understand that small businesses need efficient and accurate bookkeeping to succeed. We offer comprehensive outsourced bookkeeping services tailored to your specific needs. Our team handles everything from routine bookkeeping to full-service CFO services, tax services, and strategic financial planning. We use top-tier accounting software to ensure your books are always up-to-date and accurate.
Why Choose Profitjets?
- Expert Team: Our certified bookkeepers are well-versed in the needs of small businesses across various industries.
- Affordable Packages: We offer competitive pricing without compromising on quality.
- Advanced Technology: We ensure seamless integration and real-time financial updates using the latest accounting software.
- Comprehensive Services: From bookkeeping to tax services, we have you covered.
Conclusion
Outsourcing your bookkeeping is one of a small business’s smartest decisions. It offers cost savings, frees time, and ensures that your financials are always accurate. At Profitjets, we provide tailored bookkeeping and accounting services to suit your needs. Ready to outsource? Contact us today to get started!
FAQs on Outsourced Bookkeeping
What is outsourced bookkeeping?
Outsourced bookkeeping is when a business hires an external team to manage its financial record-keeping, allowing it to focus on its core activities.
What services does an outsourced bookkeeping company provide?
Outsourced companies typically handle everything from tracking expenses, payroll management, financial reporting, tax preparation, and more.
How does outsourced bookkeeping work?
Outsourced bookkeeping involves sharing your financial data with an external company that handles all bookkeeping tasks using specialized accounting software.
How much does it cost to outsource bookkeeping for small businesses?
The cost can range between $500 and $2,500, depending on transaction volumes, services required, and reporting frequency.
Why should I outsource bookkeeping?
Outsourcing can save time, reduce costs, and provide access to expert financial advice.
