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How to Outsource Your Bookkeeping: A Complete Guide

How to Outsource Your Bookkeeping: A Complete Guide

Any business owner will tell you that financial management is a vital part of running a successful operation. From tracking income and expenses to preparing for tax season, keeping accurate financial records is essential.

However, many business owners find themselves bogged down by the day-to-day task of trying to balance their own bookkeeping. Whether it’s struggling with tax preparation, wrestling with bookkeeping software, or worrying about accounts payable, financial reporting responsibilities can get tiresome quickly.

If this sounds familiar, you may want to consider outsourcing your bookkeeping to a professional bookkeeping firm that can help you keep track of your financial records, assist with tax preparation, and manage your cash flow. Doing so can save you time and money in the long run. In addition, outsourcing your bookkeeping can give you peace of mind, knowing that your financial affairs are in good hands.

If you’re considering outsourcing your bookkeeping, this guide will provide you with everything you need to know. We’ll cover the benefits of outsourcing, how to find a reputable bookkeeping service, and what to expect when working with a bookkeeper.

By the end of this guide, you’ll have all the information you need to make an informed decision about whether or not outsourcing is right for you.

What Is Outsourced Bookkeeping?

When most people think of outsourcing, they think of large companies sending jobs to other countries. However, this isn’t always the case.

Simply put, outsourced bookkeeping is when a business hires an outside company to handle its financial data. This can include tasks such as preparing invoices, tracking expenses, managing tax filing and tax preparation, and reconciling bank statements.

In most cases, you’ll provide the outsourced bookkeeper access to your financial records. They’ll enter this information into their system and keep track of it for you. This can be a great way to free up your time to focus on other aspects of running your business without the expense of an in-house bookkeeper.

Why Outsource Your Bookkeeping?

As a small business owner, you wear many hats. In addition to being the face of your company, you also have to keep track of expenses, manage payroll and tax preparation, and handle all of the bookkeeping. It can be a lot to take on, and it’s not always easy to stay on top of everything.

Outsourcing bookkeeping helps free up valuable time and resources. Whether you’re a small business owner or a busy professional, outsourcing your bookkeeping can be a wise decision.

Pros and Cons of Outsourcing Bookkeeping

When it comes to bookkeeping, businesses have two options: they can either do it themselves or outsource the work to a professional. There are pros and cons to both choices, and the best decision for your business will depend on various factors.

Below, we’ll explore the pros and cons of outsourcing to help you determine if it’s right for you:

Pro: More Time to Focus on Your Business

With less time worrying about things like tax filing, bookkeeping software, and bank reconciliation, you’ll have more time to focus on your company, employees, and customers.

Con: Less Control over Your Finances

Your outsourced service will be handling your financial records, so you might feel like you have less control over them. But with the right provider, you can be as involved in the process as you’d like to be.

Pro: Peace of Mind

You’ll have peace of mind knowing that your financial information and finances are in good hands.

Con: Added Expense

Outsourcing can be costly. However, most business owners find that the benefits are well worth the investment.

How Much Does It Cost to Outsource Bookkeeping?

Most business owners can expect to spend anywhere from $200 a month to $2,000 a month. How much you ultimately pay for your outsourced bookkeeping service depends on various factors, such as the complexity of the services provided, the size and scope of your company, and the volume of your financial transactions.

With that being said, there are more cost-effective solutions available, such as LedgersOnline. When you work with us, you’ll also benefit from in-house accountants, virtual services, numerous bookkeeping software options, and more. We tailor our outsourced bookkeeping services according to your needs and your budget.

Our plans are as follows:

Starter Plan

The Starter plan is just $250 a month and is suitable for a small business with one to two employees and one to two credit/bank accounts. If your financial transactions don’t surpass more than 25, the Starter plan might be ideal for you.

Bronze Plan

Then there’s the Bronze plan. At $500 a month, this plan is designed to accommodate businesses with up to five employees, one to two credit/bank accounts, and up to 100 transactions.

Silver Plan

The Silver plan is even more robust, accommodating businesses with greater cash flow and bookkeeping needs. If your firm makes up to 200 transactions, has ten or more employees, and has up to four credit/bank accounts, the Silver plan is likely a good fit for your needs.

Gold Plan

Lastly, there’s the Gold plan. This solution meets the needs of business owners with established firms that generate up to 300 transactions, have ten or more employees, and have up to 4 credit/bank accounts.

Whereas other virtual bookkeeping services may charge thousands of dollars for such a comprehensive solution, we provide this robust plan for just $1,450 a month.

Outsourced Bookkeeping Services vs. Hiring an In-House Bookkeeper

Many businesses find that outsourced bookkeeping services offer several advantages over hiring an in-house bookkeeper. Perhaps the most important benefit is that outsourced services can be tailored to meet the specific needs of your business.

For example, if you have a complex financial situation, you can choose a service that specializes in bookkeeping for businesses like yours. In contrast, an in-house bookkeeper may not have the same level of expertise.

In addition, outsourced solutions are often more cost-effective than hiring an employee since you only pay for the services you need. Another benefit of outsourcing is that because outsourced services can be provided online, you can access your account and review your books from anywhere with an internet connection.

Outsourcing can also provide you with valuable insights into your business finances, helping you make informed decisions about your spending and investment. You’ll gain a better understanding of your balance sheet and cash flows, ensuring a better grasp of your core business needs.

How to Outsource Bookkeeping Services

Before outsourcing your bookkeeping, you need to take some time to prepare. Make sure that you clearly understand your financial needs and goals. This will help you find a solution that’s a good fit for your business.

You’ll also need to gather your financial documents, including invoices and receipts, and determine how much you can afford to spend on bookkeeping services. Once you’ve prepared your financial statements and determined your budget, it’s time to start looking for the right provider.

Since bookkeeping is one of the most important aspects of running a business, it’s essential to find a bookkeeping team that can meet the specific needs of your business.

When seeking a bookkeeping provider, make sure that they have experience dealing with businesses of your size and are familiar with your industry. Second, ask about their fees and what kinds of services they offer. Finally, get references from other businesses that have used their services.

By taking the time to prepare and choose the right bookkeeper, you can ensure that your experience is positive and productive.

Custom Bookkeeping Solutions From LedgersOnline

Bookkeeping is critical for any business, large or small. It helps track income and expenses, identify trends, and make informed decisions about allocating resources. When you have the right bookkeeping services in your corner, you’ll enjoy greater freedom and peace of mind in your business endeavors.

At LedgersOnline, it’s possible to get the best outsourced bookkeeping services in a single, convenient, affordable package. Upon signing up, you’ll be assigned your own dedicated bookkeeper, which ensures that you get the best fit possible based on your needs.

Rather than a one-size-fits-all solution (which, let’s face it, doesn’t exist in the world of bookkeeping), we take the time to understand your business’ unique bookkeeping needs. We then match you with the best candidate among our team of professional bookkeepers. Your dedicated bookkeeper will work with you to develop a tailored plan exclusively for your business.

When you partner with us, you receive a super-charged solution with up-to-date books and real-time access to your financial information. Contact us today to learn more.