Are you struggling to keep up with the financial details of your business? You’re not the only one. 37% of small businesses outsource their accounting and bookkeeping services to enhance day-to-day operations and focus on growth.
Outsourcing your bookkeeping not only saves time but also provides access to expert financial management at a fraction of the cost of hiring an in-house team.
In this post, we’ll dive into outsourcing bookkeeping services available and how to select the right provider for your business.
Ready to simplify your bookkeeping? Take a look at how we can help you hire a bookkeeper for your business!
Why Outsource Bookkeeping Services?
Outsourcing bookkeeping offers significant advantages for businesses of all sizes. It provides cost efficiency by eliminating the need for full-time, in-house staff, allowing companies to pay only for the services they need. Access to experienced professionals ensures accuracy, compliance with financial regulations, and reduced risk of errors.
Types of Bookkeeping Tasks and Services Commonly Outsourced
Outsourced bookkeeping providers offer a wide range of services to handle financial tasks efficiently.
Here are some common services offered:
- Recording Transactions: This involves accurately documenting all daily income and expenses, ensuring that every financial activity is recorded promptly and systematically for future reference.
- Bank and Credit Card Reconciliation: Financial transactions are matched with bank and credit card statements to confirm that accounts are balanced, helping identify discrepancies and ensuring financial accuracy.
- Accounts Payable Management: AR management includes handling and processing vendor invoices, tracking payments, and ensuring that payments are made on time to avoid late fees and maintain good supplier relationships.
- Payroll Processing: Payroll processing ensures that employee salaries are accurately calculated, tax deductions are properly applied, and all benefits are managed in compliance with legal and regulatory requirements.
- Tax Services: Financial records are organized to calculate tax liabilities, and necessary documents are prepared to ensure that all tax filings are done accurately and on time, reducing the risk of penalties.
- Reporting: Regularly generating profit and loss statements, balance sheets, and cash flow reports to provide detailed insights into the company’s financial performance and health.
- Expense Tracking: Involves monitoring and categorizing business expenses to improve budgeting and ensure that all expenses are properly accounted for, enhancing financial efficiency.
- Inventory Management: Keeping track of inventory costs, updating stock levels, and ensuring that financial records reflect accurate inventory data, which helps in managing operational costs.
- Budgeting and Forecasting: Preparing detailed budgets, forecasting future revenue and expenses, helping businesses plan financially for growth, and ensuring resources are allocated efficiently.
- Accounts Receivable Management: Involves generating customer invoices, keeping track of outstanding payments, and following up on overdue accounts to ensure a steady cash flow and minimize late payments.
Read more: Top 10 Reasons To Outsource Accounts Receivable (AR)
Pros and Cons of Outsourcing Bookkeeping
| Pros | Cons |
| Reduced overhead costs compared to maintaining an in-house team, as you only pay for the services you need. | Businesses may feel a need for more direct oversight compared to managing an in-house team, which can impact decision-making. |
| Access to qualified professionals familiar with various industry standards and regulations, ensuring compliance and accuracy. | Potential for delays or misunderstandings, particularly if providers are offshore or operate in different time zones. |
| Business owners and teams can concentrate on strategic goals and growth initiatives rather than administrative tasks. | Sharing sensitive data requires a high level of trust in the provider’s security measures and protocols. |
| Providers often use cutting-edge bookkeeping software, enhancing accuracy, efficiency, and real-time financial insights. | Ensuring outsourced services align with existing processes, software, and workflows can sometimes be challenging. |
| Services can be customized and scaled based on your business’s needs, offering flexibility during growth or downsizing. | Unexpected fees or additional charges can arise if the scope of services isn’t clearly defined upfront. |
How to Select a Bookkeeping Outsourcing Provider
Selecting the right provider is crucial for maximizing the benefits of outsourced bookkeeping. Here are key factors to consider:
Experience and Expertise
Choosing a provider with industry-specific experience ensures they understand the unique financial challenges and regulations of your business sector. Look for certified professionals, such as CPAs (Certified Public Accountants) or CFAs (Chartered Financial Analysts), who have a proven track record in delivering accurate and reliable bookkeeping services. An experienced provider can offer valuable insights and best practices that improve your financial management.
Services Offered
Ensure the provider offers a comprehensive range of services that match your needs. Confirm they can customize their services to suit your business model and scale operations as you grow. A flexible provider will adapt their offerings to your evolving requirements, ensuring continued support at every stage of your business.
Technology and Tools
Modern bookkeeping relies heavily on technology. Verify that the provider uses reputable, up-to-date accounting software like QuickBooks, Xero, or FreshBooks. Compatibility with your existing systems is essential to avoid disruptions and data integration issues. Additionally, inquire about their cybersecurity measures to ensure your data is protected from unauthorized access.
Reputation and Reviews
A provider’s reputation is a strong indicator of the quality of service you can expect. Read client testimonials and case studies to understand their strengths and weaknesses. Check third-party review platforms such as Trustpilot or Google Reviews for unbiased feedback. Positive reviews and long-standing client relationships are signs of reliability and consistent performance.
Cost and Pricing Structure
Understanding the pricing structure helps you avoid unexpected costs. Compare pricing models—whether they charge hourly, per task, or a fixed monthly rate—and ensure you know exactly what services are included. Be cautious of hidden fees or additional charges for services outside the basic package. A transparent pricing model will help you manage your budget effectively.
Communication and Support
Effective communication is vital for seamless collaboration. Evaluate the provider’s responsiveness and the support channels they offer, such as email, chat, or phone. Consider potential time zone differences or language barriers if the provider is based offshore. Clear and timely communication ensures that any issues are addressed promptly, keeping your financial operations running smoothly.
What to Ask When Hiring an Outsourced Bookkeeper
Before hiring a bookkeeping service, ask these key questions:
- What certifications do your bookkeepers hold?
- How many years have you been providing outsourced services?
- Can you customize services to meet my specific needs?
- What accounting software do you use?
- How do you ensure data security and privacy?
- What is your typical turnaround time for tasks?
- What are your pricing models, and what’s included in the cost?
- Are there any setup fees or long-term contracts?
Top Outsourced Bookkeeping Service Companies
Here are some of the top outsourced bookkeeping service providers that can help streamline your day-to-day operations and support your business growth.
1840 & Company
At 1840 & Company, we pride ourselves on our global talent network, offering comprehensive outsourced bookkeeping solutions tailored to businesses of all sizes and industries. Our services cover everything from transaction recording and accounts payable/receivable management to payroll processing and advanced financial analysis.
Our team of certified professionals ensures accuracy and compliance with financial regulations, seamlessly integrating with various accounting systems. With a strong emphasis on data security and efficient communication, we’re committed to being a reliable partner in helping you streamline your financial operations and achieve long-term stability.
2. Pilot
Pilot specializes in monthly bookkeeping services designed for startups and growing businesses, offering a combination of advanced technology and human expertise. They provide dedicated financial support, covering tasks such as transaction categorization, monthly reconciliations, and detailed financial reporting.
Pilot’s platform integrates seamlessly with popular tools like QuickBooks, Xero, and Stripe, ensuring accurate and real-time data. Additionally, Pilot offers CFO services and tax preparation, making them a comprehensive financial partner. Their industry-specific insights and tech-driven approach make them particularly valuable for companies in the tech and e-commerce sectors.
3. Bench
Bench is known for its user-friendly, online bookkeeping service that pairs organizations with dedicated bookkeepers to handle day-to-day financial tasks. Their services include transaction recording, monthly reconciliations, and financial statement preparation.
Bench’s intuitive platform provides real-time access to financial data, enabling business owners to track their financial health easily. They also offer specialized services such as tax support and catch-up bookkeeping for companies that have fallen behind on their records.
4. Bookkeeper360
Bookkeeper360 offers a wide range of bookkeeping functions, payroll, and CFO advisory services tailored to small and medium-sized enterprises. Their cloud-based approach ensures that data is accessible and up-to-date, integrating with popular software like QuickBooks and Xero.
In addition to standard bookkeeping tasks, Bookkeeper360 provides financial reporting, cash flow management, and tax planning services. They also offer specialized advisory services to help businesses make data-driven decisions.
5. Belay
Belay provides virtual basic bookkeeping services with a strong emphasis on personalized support and U.S.-based bookkeepers. Their services cover everything from daily transaction recording and bank reconciliation to reporting and taxes.
The company is known for its commitment to quality and reliability, making it a popular choice for businesses that require hands-on support. Belay also offers additional services such as virtual assistant support, making them a versatile partner for companies seeking to streamline their operations.
6. inDinero
inDinero offers a comprehensive suite of financial services, including bookkeeping, accounting, and tax support. Their cloud-based platform allows business owners to monitor their financial health and make data-driven decisions in real time.
They also provide strategic advisory services, helping businesses plan for growth and navigate financial challenges. With a focus on personalized service and advanced reporting capabilities, inDinero is a trusted partner for businesses seeking to optimize their financial operations.
7. Xendoo
Xendoo simplifies bookkeeping for small businesses with its flat-rate pricing and dedicated bookkeeping team of bookkeepers. Their services include transaction recording, monthly reconciliations, and financial statement preparation.
They also offer tax preparation services and financial reporting, helping businesses stay compliant and informed. Xendoo is known for its responsive customer support and commitment to transparency, making it an excellent choice for small businesses looking for reliable and straightforward bookkeeping solutions.
8. Decimal (Formally KPMG Spark)
Decimal is an outsourced bookkeeping service designed to help businesses streamline their financial processes. They offer comprehensive services, including managing day-to-day bookkeeping, payroll, accounts payable and receivable, and financial reporting.
Outsourcing to Decimal provides cost savings, time efficiency, and access to professional expertise. Their dedicated teams ensure compliance with financial regulations while delivering accurate records and insightful reporting.
9. Acuity
Acuity offers flexible bookkeeping and accounting solutions tailored to startups and growing businesses. Their services range from basic bookkeeping tasks, such as transaction recording and reconciliations, to advanced financial support, including fractional CFO services and tax planning.
Acuity’s tech-savvy approach integrates seamlessly with popular accounting tools. They also offer specialized services for businesses in the SaaS, e-commerce, and professional services sectors.
Conclusion
Outsourcing your bookkeeping can be a game-changer for your business, offering cost savings, expert support, and more time to focus on your core operations.
With the right provider, you can access expert support, improve financial accuracy, and save money—all while freeing up your team to concentrate on strategic goals. However, it’s essential to carefully choose a provider that aligns with your business needs and offers reliable data protection.
If you’re ready to take the next step and discover how outsourcing bookkeeping can benefit your business, schedule a call with our growth experts today.
