How to Outsource Your Bookkeeping In 2022 Full Guide

With Bookkeeper360, you’ll get a dedicated virtual accountant who sends detailed reports on a monthly basis. However, Merritt can still recommend a solid payroll provider or tax consultant who meets your needs. Unlike most other outsourced bookkeepers on our list, Merritt Bookkeeping doesn’t offer any in-house add-ons for payroll and tax services. If you were hoping for a one-stop shop that can tackle all of your financial needs, Merritt might not be the right choice for you. The typical cost for outsourcing bookkeeping, accounting, and similar services ranges from $500 to $5,000 per month. There is a massive price difference based on complexity, transaction volume, and many other factors.

• Listen to your intuition and find an outsourced CFO you know you can trust.
• Outsourcing firms typically specialize in bookkeeping and employ experts in the field.
• When you consider that the average hourly wage for executive-level management is around $60, this translates to a potential savings of $2,100 per week in productive time.
• It’s also worth mentioning that if you hope to grow or scale your business, you won’t be able to without proper bookkeeping in place.

Outsourced bookkeeping is an option if you want to outsource your books and you have a small business. If you don’t have time to do the bookkeeping yourself or don’t have an accounting background, outsourcing can help save you time and money while ensuring the financials are accurate. This article explores the benefits of outsourced bookkeeping and gives theoretical how to spell bookkeeping and how to misspell it too examples over in-house solutions. For example, when you sign up with Bench, you’re paired with a team of professional bookkeepers who gather your data and turn it into tax-ready financial statements each month. Then, our platform lets you track your finances, download financial statements for your accountant, and message your bookkeeping team.

Outsourced Controller

If there’s no one on staff with bookkeeping experience, it might make sense for your company to hire someone specializing in this area. You may also want to consider hiring an outsider so they aren’t as connected with your business or know as much about its operations—and can therefore do their job more objectively. The global business process outsourcing (BPO) market reached almost $246 billion in 2021, with a compound annual growth rate of 9.1% from 2022 to 2030. The BPO industry will continue to evolve, with different emerging BPO trends taking front and center over time. Finally, you can connect with your dedicated bookkeeper to determine what works for you as far as financial reports.

The first step in virtual bookkeeping involves organizing and categorizing financial transactions. This includes systematically classifying income, expenses, assets, and liabilities. It’s likely that an outsourced CFO has experienced these challenges before, making them well-qualified to advise your business on its strategic direction. Challenges in working with an outsourced controller typically occur when communication is infrequent. To avoid these issues, prioritize relationships with outsourced controller service providers who call out responsiveness as a key element of their client service philosophy.

Outsourcing Your Bookkeeping To Grow Your Business

Add to that a tax specialist, whose average salary is approximately $80,000 per year, and perhaps a financial analyst at $85,000 per year. You’re looking at a total annual salary cost of $235,000, not including benefits and overhead. In contrast, an outsourced bookkeeping service provides you with access to all these experts under one umbrella, often at a fraction of the cost. Beyond the numbers, the value proposition of outsourced bookkeeping is even more compelling.

The balance sheet shows you the financial position as it throws light on the assets, liabilities, and equity. In a typical mid-sized company, an in-house bookkeeper might spend around hours a week on financial tasks, including transaction recording, payroll processing, and financial reporting. For a CEO or CFO, overseeing these tasks can take up an additional 5-10 hours per week. This is time that could be better spent on strategic planning, market analysis, or customer engagement. Outsourced bookkeeping services handle these tasks autonomously, freeing up to 35 hours a week for you and your team to focus on core business activities. When you consider that the average hourly wage for executive-level management is around $60, this translates to a potential savings of $2,100 per week in productive time.

What Are the Advantages and Disadvantages of Bookkeeping Outsourcing?

They are able to seamlessly integrate their bookkeeping into your accounting workflows. Bench.co is best for very small businesses that need basic bookkeeping services. This process involves reconciling your business bookkeeping records with those on the bank statement or your business bank account. Bank reconciliation is crucial for every business because it protects you from fraud, lets you balance your records, makes it easy during audits, and spots discrepancies. Bookkeeping services will only perform bank reconciliation in the case that you use an accrual method of accounting. This is the case because it ensures that the bank transactions that you recorded in your books were actually performed at a later date.

• You have made your choice, and now it’s time to enjoy having a dedicated account manager and bookkeeper do the job for you.
• Our focused investment in establishing cutting-edge communication, collaboration, and delivery processes guarantees zero friction between your in-house & offshore teams.
• These services include daily compliance such as tax and payroll and other expert services.
• Full-time, in-house bookkeepers are really for businesses with advanced needs.

Outsourced bookkeeping is hiring an outsourced bookkeeper to perform all the bookkeeping tasks for your business. Outsourced bookkeeping takes the stress out of managing a bookkeeper in-house and it saves money on investing in a software solution for performing bookkeeping and accounting tasks. Outsourced bookkeeping has gained traction in the past few years as many businesses wish to focus on other aspects of their business rather than worry about bookkeeping. There are many reasons to outsource your bookkeeping, which can be a good option for many companies. Outsourcing your books will free up time to focus on other business aspects.

Does the benefit of having granular knowledge of your clients’ books outweigh the cost?

No more time wasted and no more having to hold onto every little receipt. If you don’t already work with accounting software we’ll get you set up with one. Then we’ll make sure the proper communication channels are in place so that we can get in touch when we need to.

If you use accrual-basis accounting, you’ll need the Growth plan, which starts at $990 a month. And the Executive plan, which is built for larger companies that need CFO services, has custom pricing. When you find a suitable bookkeeping solution, ensure you interview the person before hiring them.