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Outsourced Bookkeeping 101: Benefits, Types, and Solutions

Outsourced Bookeeping
Read Time: 8 min

Handling bookkeeping in-house once meant endless hours reconciling accounts, chasing paperwork, and deciphering regulatory changes. Today’s services on outsourced bookkeeping deliver simplicity, cost savings, and guidance to fuel strategic goals.

This guide covers everything decision-makers should know about outsourcing bookkeeping.

Table of contents

What is Outsourced Bookkeeping

Outsourced bookkeeping refers to contracting external accounting specialists to handle your business’s day-to-day financial data entry, organization, and management. This differs from traditional in-house bookkeeping staff.

Typical outsourced tasks include:

  • Entering bills, expenses, invoices, and other transactions

  • Reconciling accounts

  • Issuing financial statements 

  • Processing payroll

  • Preparing for annual taxes and audits

There is flexibility in customizing the exact services based on internal bandwidth and strengths. Daily, weekly, or monthly support helps ensure transactions stay up to date without pulling founders and managers into the data weed.

How Does Outsourced Bookkeeping Work?

Outsourced Bookkeeping follows a simple process:

  • Assess Needs – Determine internal capabilities and books that need oversight to support growth.

  • Find a Provider – Vet specialists on services, expertise, integration, security, and support models.

  • Onboard and Transition – Introduce the outsourcing partner to systems and share required documents.

  • Manage Collaboration – Communicate needs, share access, and monitor work streams through dashboards.

  • Optimize over time – Continuously align expectations and refine scope and reporting needs.

The right partner makes outsourcing bookkeeping seamless through collaboration tools, access controls, change management, and strategic guidance.

Who Outsources Their Bookkeeping?

Businesses in various sectors and sizes use outsourced bookkeeping to expand their operations more effectively.

Typically, bookkeeping is outsourced when:

  • Startups need financial experts to set rock-solid systems to manage rapid growth.

  • Small businesses want to control expenses and focus on customers.

  • Mid-market companies expand into global territories with regulatory needs.

  • Enterprises embed specialists across units for deeper insights into profit centers.

  • If financial reporting seems a constant battle, outsourced support brings order and energy to strategic initiatives.

Why Should Businesses Outsource their Bookkeeping

Many businesses, from solopreneurs to startups or established companies, discover the numerous benefits of outsourcing bookkeeping. 

Here are a few key reasons why:

  1. Saves Time and Resources: Ditch the spreadsheets and data entry purgatory! Outsourcing frees up valuable time for core business activities and strategic planning.

  1. Reduces Costs: Hiring and managing an in-house bookkeeper can be expensive. Outsourcing offers cost-effective access to expertise without the overhead.

  1. Improves Accuracy and Compliance: Qualified bookkeepers stay up-to-date on tax regulations and accounting standards, ensuring accuracy and minimizing costly errors.

  1. Enhances Financial Visibility: Regular reports and insights give you a clear picture of your financial health, enabling informed decision-making and strategic growth.

  1. Peace of Mind and Reduced Stress: Knowing your finances are in capable hands brings peace of mind and allows you to focus on what matters most.
Outsourced Bookkeeping

When Should a Business Consider Outsourcing its Bookkeeping

Great bookkeepers do more than tally debits and credits. They analyze cash flow, optimize supplier terms, identify tax savings, and provide clarity into business performance many owners crave.

Signs it may be time to engage a bookkeeping specialist include: 

  • Mission-critical reporting is constantly delayed.

  • Existing staff juggle too many responsibilities. 

  • Fears about accuracy and audit risks.

  • Lack of capabilities in preparing complex filings.

  • Need elevated financial insights to guide decisions. 

  • Leadership drained handling routine transactions. 

Outsourcing relieves tensions holding leaders back from their highest level of work and accelerates success.

What Bookkeeping Services Should You Outsource?

Start with tasks draining internal bandwidth that specialists handle more efficiently.

Commonly outsourced services include:

  • Everyday bookkeeping – Daily/weekly transaction logging, account reconciliation, journal entries 

  • Payroll –  Paycheck runs, filings, and contractor oversight to stay compliant 

  • Reporting and analysis – Insightful financial statements, use KPI dashboards to connect dots

  • Taxes –  Sales tax, payroll taxes, 1099 form preparation and filing 

  • Audits – Support managing financial reviews and requests

The proper alignment of outsourcing allows existing staff to focus on service and strategy while trusted partners provide back-office support. Evaluate gaps and pain points to guide priorities.

What Are The Benefits of Outsourcing Bookkeeping?

Beyond time savings and stress reduction, outsourcing bookkeeping powers growth through:

  • Improved accuracy –  Bookkeeping partners have resources to double-check work and implement internal controls for error-free results

  • Elevated reporting – Outsourcers go deep into data analysis, transcending standard reports to tie insights to strategic goals.

  • Built-in scalability –  No need to staff up as transaction volume increases. Accounting partners add bandwidth as needed.

  • Proactive guidance – Experts monitor cash flow trends, tax law shifts, and upcoming deadlines to provide advance notifications that help leaders steer confidently, 

Calculated ROI beyond cost savings into revenue lift and management energy unlocked. The numbers prove compelling and inspire continuous innovation. 

Top 10 Reasons to Outsource Bookkeeping

Now, let’s dive into the compelling reasons why outsourcing bookkeeping is a game-changer for businesses:

  • Focus on Core Strengths: Invest your time and talent in what you do best, and leave the financials to the experts.

  • Access to Expertise: Gain the knowledge and experience of skilled bookkeepers without the cost of full-time staff.

  • Scalability and Flexibility: Easily adjust your bookkeeping needs as your business grows or contracts.

  • Enhanced Data Security: Many providers offer robust security measures to protect sensitive financial information.

  • Improved Internal Controls: A fresh set of eyes can identify and prevent potential financial inconsistencies.

  • Streamlined Accounting Processes: Implement efficient and organized systems for managing your finances.

  • Greater Tax Accuracy and Savings: Minimize tax errors and maximize deductions with expert guidance.

  • Always Up-to-Date Technology: Leverage the latest accounting software and tools without the maintenance burden.

  • Increased Time for Business Growth: Spend more time on strategic initiatives and business-building.

  • Reduced Business Stress and Burnout: Delegate the financial burden and enjoy the peace of mind to thrive.

Top 5 Things to Consider for Outsourced Bookkeeping Services

Now we come to one of the most essential parts of the discussion, the five significant considerations that have to be made regarding an outsourced bookkeeping service.

1. The clarity in Business Goals:

The first important point you must be completely clear about is what your business requires and the ultimate goal for your bookkeeping requirement. You will have to understand that every business has a very different goal, so the criteria for bookkeeping tend to differ.

From the very first day, you have to make sure that you hire an outsourced bookkeeping service that can keep up with the goals that you require. 

2. Accuracy in Bookkeeping:

What does one mean by bookkeeping? It keeps a record; hence, when you hire someone externally, they must keep precise and accurate tabulation. This is precisely why ensuring that the outsourced bookkeeping service gets the best for you and is precise in its approach. 

If clarity or accuracy is the issue, then the choice might be better because it would pressure you to keep checking the books they maintain. Always go with those options that provide you with accurate bookkeeping.

3. Affordability:

Outsourcing a bookkeeping service is for the long term, so you have to ensure they are affordable. If it is not sustainable in the long run, then it is almost a given that the service is not suitable for you, and hence, you have to choose someone else who fits that budget criterion again. 

If you go by our opinion, ensure they are affordable in the long run before hiring anyone. If you keep making changes, that will cause problems in the working of your business, and your data will be available to many outsiders.

4. Experience:

Bookkeeping is a field that gets better as you practice, so experience plays a crucial role. Always ensure that the company you choose gives you the best of services and has a lot of experience in the area because that will add to the benefit. 

Always remember that the more experience a company has, the more efficiently it will handle problematic situations.

5. Trained Professionals:

Finally, the ultimate reason behind hiring an outsourced bookkeeping service is to ensure they are professional and do not compromise the quality of services. Always ensure that the service you choose has a good team of trained professionals known for their bookkeeping skills. 

Outsourced Bookkeeping

Types of Outsourced Bookkeeping Services 

Two primary outsourcing models exist in the marketplace:

Virtual Bookkeeping/Accounting firms

These firms offer dedicated outsourced virtual bookkeeping teams to handle a defined scope of work, whether ad hoc or ongoing needs. This option brings predictability through capacity and pricing for set services. 

Freelance Bookkeepers

Independent bookkeepers allow flexibility in contracting short or mid-term projects. Payment rates align to assignments ranging from temporary workload spikes to special initiatives. This leverages specialized experience.

Evaluate both structures against internal plans and seasonal swings. Blend models to build an ecosystem of financial talent at the ready through a trusted partner like Profitjets Outsourced Bookkeeping Services.

How Much Do Outsourced Bookkeepers Charge?

Like all professional services, outsourced bookkeeping rates vary based on experience level, workload complexity, turnaround times, and geographic labor costs. Offshore partnerships provide over 50% cost savings on U.S. and Canada-based terms. 

According to PayScale, the average Bookkeepers rate ranges from:

Define expected outcomes, then evaluate options. Savvy partners craft flexible pricing aligned to strategic value.

Why Choose Profitjets for Outsourced Bookkeeping?

As outsourcing goes mainstream across operations from HR to marketing, modern accounting partners like Profitjets make bookkeeping migration frictionless through: 

  • Industry Expertise –  Whether retail inventory management or SaaS financial planning, we assemble teams experienced with nuances of your vertical to quicken insights.

  • Security – Bank-level protocols, encryption, and access controls keep data locked down yet accessible anywhere clarity is needed.

  • Customer Service – Dedicated account management provides high-touch support and trains internal staff to get the most out of reporting.

  • Value Pricing – Month-to-month flexibility, unlimited support, no surprise fees, and offshore blended rates.

Fill gaps without draining budgets or locked contracts. Bookkeeping with us will help you unlock a strategic vision for your business’s future.

Benefits of Hiring Profitjets to Provide Bookkeeping Services

Profitjets is a top provider of small business bookkeeping services, and working with us has several advantages for our clients. These consist of:

Options for Affordable Pricing: 

Without sacrificing accuracy or service quality, we offer small business accounting services that are incredibly reasonable.

Data Protection:

At Profitjets, we take data security very seriously. We’ll treat your financial information with the highest security.

Superior Services:

Since we are ISO-certified, we offer exceptional value for money and apply the most recent bookkeeping for small business practices.

Outstanding Infrastructure:

As a top supplier of small business bookkeeping services in the US and worldwide, we have the necessary resources and infrastructure to deliver outstanding solutions in bookkeeping for small businesses.

Technologies and Tools:

Our company offers cutting-edge services using the most significant and recent business bookkeeping software.

Team with Experience:

With 23 years of combined experience, our bookkeeping for small businesses team offers a wide range of financial and accounting services to clients worldwide.

A rapid turnaround:

We take deadlines very seriously. Thus, our specialists will always offer their finance and accounting services as quickly as possible.

Outsourced Bookkeeping

Conclusion

Finding the proper outsourced bookkeeping and accounting partner is crucial. Research reputable companies, compare services and pricing, and choose one that aligns with your needs and budget. Ask for referrals, check online reviews, and schedule consultations to find the perfect fit.

Outsourcing bookkeeping is not just about delegating tasks; it’s about investing in your business’s financial health and future success. So, take the leap, free up your time and energy, and watch your business soar with the power of outsourced bookkeeping!