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Outsourced Bookkeeping 101: Benefits, Types, and Solutions

Outsourced Bookeeping
Read Time: 4 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 to customize 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, refine scope and reporting needs

Outsourced Bookkeeping

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

Who Outsources Their Bookkeeping?

Companies of all sizes and across industries leverage outsourced bookkeeping to scale efficiently.

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.

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 work and accelerates success.

Outsourced Bookkeeping

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 outsourcing alignment 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. 

Get Strategic Finance Solutions. See how outsourced bookkeeping elevates analysis and insights to fuel smarter decisions across operations and investments. Speak to an advisor about custom reporting and pricing.

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 combined with 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.

Outsourced Bookkeeping