If you are considering outsourcing your bookkeeping but don’t know how, you’ve come to the right place.
In this guide, we will discuss why outsourced bookkeeping is great for many businesses, and how to outsource bookkeeping work to a reliable service provider.
Why Should You Outsource Bookkeeping?
You should consider outsourced bookkeeping because doing your own bookkeeping can be time consuming, stressful, and inefficient. Sometimes you may not even realize how much of a strain DIY bookkeeping is putting on you and your business, so here are a few signs that you should look into bookkeeping outsourcing.
- Your books are always out of date.
- You have missed tax exemptions.
- You struggle to keep track of cash flow.
- You don’t like doing your bookkeeping.
Outsourced bookkeeping will facilitate the process and free up your time to manage other more important aspects of your business.
Before you begin your search for a bookkeeper, you need to know what kinds of bookkeepers are out there. There are two different types of bookkeepers: local bookkeepers and virtual bookkeepers. To determine which type of bookkeeper is most beneficial to your business, let’s look at the pros and cons of each type.
As the name suggests, local bookkeepers are bookkeepers that can be found in your area. This means that you will be able to meet with a local bookkeeper in person to discuss your business. There are several routes you can take to hire a local bookkeeper, such as hiring a freelance bookkeeper, or contacting a bookkeeping firm near your physical business address.
A freelance bookkeeper will be able to provide more personalized services and work with you one on one. They also tend to have the flexibility to work online, in person, or both. Freelance bookkeepers have varying levels of expertise, which can make it difficult to find one that fits with your business.
Bookkeeping firms will be more costly than freelance bookkeepers, but this cost can be worthwhile for a number of reasons. For one, bookkeeping firms can provide a level of security that freelance bookkeepers cannot. This is because firms tend to have bookkeepers with certifications. Additionally, if your bookkeeper takes a leave of absence, the firm can send another one to continue your service.
If the price or the in-person communication aspects of the local bookkeeping options do not appeal to you, then it is likely that virtual bookkeeping is better suited for your business. Virtual bookkeeping is a good middle ground between traditional bookkeeping and using bookkeeping software to do it yourself because it allows you to hire someone else to manage your bookkeeping through the web.
When it comes to choosing a virtual bookkeeper, you must not only find out if that bookkeeper is compatible with your business, but also which softwares they use. Virtual bookkeepers usually do your bookkeeping by sharing your account, but if they do not use the same software that you use for bookkeeping then they are not compatible with your business.
For example, if you prefer to use Quickbooks, you should look for a bookkeeper that specializes in that software.
To learn more about Quickbooks and customizing your desktop, check out our other article here: Make QuickBooks Yours – eCommerce Bookkeeping & Accounting | eComm Financial Services
How to Hire Outsourced Bookkeeping:
Now that you have an idea of what kind of bookkeeper you would like to hire, let’s go through the different criteria that you should consider for your hiring process.
1. Cost To Outsource Bookkeeping
There are two important questions you should ask yourself before you go into the hiring process:
- What is the lowest fee that you are willing to pay for a bookkeeper with the minimum qualifications needed to help your business?
- What is the highest fee you are willing to pay for a bookkeeper with your ideal set of qualifications?
Having these two things in mind by the time you start hiring an outsourced bookkeeper will help you determine how much you will pay them for their services.
Remember, the cheapest option isn’t always the best one, but a high price isn’t always an indicator of quality work, either. There are other criteria for you to examine that will help you determine who to hire.
2. Experience & Qualification of An Outsourced Bookkeeper
You can determine how qualified a bookkeeper is to work with your business by looking at their certifications and experience.
To gain a more complete picture, you should also see if they are familiar with your industry, and you should check how long the bookkeeper/bookkeeping firm has been operating.
You will be entrusting a very important part of your business to the bookkeeper you hire, so you must ensure that they are qualified to handle it.
3. Communication With Your Bookkeeper
You want to hire a bookkeeper who is responsive and can easily be contacted. Bookkeeping outsourcing is like a partnership in that you and your bookkeeper must work together to keep your books in order. In every partnership, communication is key.
The more efficiently you communicate with your bookkeeper, the more smoothly you can run your operations.
If you feel that a bookkeeper will not keep you updated on vital information or if you feel that you cannot reach a bookkeeper to tell them that they must make changes, then you should not hire them to do your bookkeeping.
One way to ensure that your bookkeeper will be regularly communicating their results to you is by paying them to deliver reports on a set schedule.
Side note: If you would like to learn how to communicate with your own customers more effectively, check out our other article here: Communicate with customers – eCommerce Bookkeeping & Accounting | eComm Financial Services.
4. Services Offered
When outsourcing your bookkeeping, you should find a bookkeeper who can meet all of your business’ needs.
As mentioned above, it is highly beneficial to have a bookkeeper who is experienced in your industry. This way, the bookkeeper will be able to navigate all the complexities that are specific to your business.
You may be surprised to find out just how many services can be covered by a bookkeeper, and that is exactly why it is important to ask. Some bookkeepers may also be able to act as a virtual assistant should your business require it.
Once you know what services are available to you, you can begin to see how they fit into your business’ needs.
- Attention to detail: Since bookkeeping is such detail oriented work, you want to look for signs that a prospective bookkeeper will be meticulous and precise with their work.
- Reliability: You want to hire a bookkeeper who will be there when you need them, not a bookkeeper who is overwhelmed with clients or constantly going on trips.
- Online presence: A good virtual bookkeeper should utilize social media accounts to put out good content. Looking at these things will help you determine the quality of their work.
Once you know what to look for, all that’s left to do is start contacting bookkeepers and gathering information.
If you found this guide helpful, then you will be glad to know that we offer outsourced bookkeeping services for online businesses.
Our bookkeepers are cost-effective, qualified, communicative, and offer a variety of services to meet your needs. Find out all about it by scheduling a free consultation here: https://ecommfs.com/services/
Don’t forget to check out our other blogs for more great content!