What is outsourced bookkeeping?
Outsourced bookkeeping services provide a full accounting department experience, while freeing up time to focus on your business's core competencies. Outsourced accounting firms can assist with a myriad of finance tasks, ranging from day-to-day transaction coding, accounts payable, accounts receivable, financial statements and reconciliation. Outsourced bookkeeping services often cost less than hiring your own in-house team.
Benefits of outsourced bookkeeping services
Adaptability: You can quickly scale up your bookkeeping operations without having to hire new finance or accounting headcount. This enables you to make smarter decisions about resourcing for your business.
Expertise: When tax season rolls around, it will be significantly less stressful for you as a business owner to know that a trusted partner is handling your books.
Fewer distractions: Many business owners manage their own bookkeeping, which means less time spent on your business’s core competencies. Chances are that your time is better spent running your business rather than working on bookkeeping. Hiring an external bookkeeper frees up your time to work on the important stuff.
Cost: Time is money and your time is valuable. By leveraging outsourced bookkeeping services, you save both.
Many accountants or CPAs will clean up your books at the end of the year but can charge higher rates to do so. By hiring an outsourced bookkeeper you ensure accurate books at a lower cost throughout the year.
It’s never too early to consider outsourcing your bookkeeping. Bookkeepers may be able to help you track and take advantage of common tax deductions, managing sales and use tax, and even running your payroll. Some bookkeepers may also handle bill payments or manage your receivables.
It really comes down to the needs of your business and capacity for training, level of control, reporting needs, and cost. In-house bookkeepers dedicate all their time to servicing your company however, their level of skill may vary greatly and hiring a good fit can be daunting. Outsourced bookkeeping firms may have a stricter hiring process resulting in more skilled bookkeepers who are up-to-date with the latest accounting technology.
Bookkeeping firms will differ from one another and offer varying services. It’s best to speak with multiple firms to find one that can handle your current needs and also support your business as it grows. Costs and fee structure can also vary greatly depending on their experience and level of involvement in your accounting workflows.
Ramp partners with firms that offer outsourced bookkeeping services. Click here to see a list of firms that might be a good fit for your business.