You may be wondering the benefits of Outsourced Bookkeeping and Accounting. Bookkeeping and accounting services have become one of the most outsourced functions in small to medium-sized companies. Today’s businesses function in a hybrid remote and on-premises staffing environment, often with significantly reduced staff. Outsourced bookkeeping and accounting are often less expensive than in-house services and can offer a wide range of expertise based on your type of business.
Are bookkeepers and accountants the same?
These terms are often mistakenly used interchangeably, and while some of the functionality overlaps, there are significant differences in the services and value they provide. Bookkeepers handle the day-to-day tasks of recording financial transactions, while accountants provide insight and analysis of that data and generate accounting reports. An accountant can perform bookkeeping tasks and provide bookkeeping services, but a bookkeeper generally does not have the knowledge or training to perform the higher level financial analysis of an accountant.
Hiring a bookkeeper ensures that transactional and administrative-accounting functions are correctly executed, and monthly financials are completed. An accountant understands and analyzes the data providing insight, analysis, tax planning, and strategies. At a minimum, a business owner should have an accountant to provide them with tax planning and preparation. However, your bookkeeping and accounting needs will change as your business grows.
Benefits of Outsourced Bookkeeping and Accounting: What is it?
Outsourced bookkeeping or accounting provides complete bookkeeping and accounting services from a third party outside your organization. Accounting or bookkeeping for small businesses tracks income and expenses and lets the business owner know the company’s cash flow and overall financial health. Services provided by outsourced bookkeeping and accounting include:
- Initial review of existing books
- Assistance with the monthly bookkeeping, accounting, and financial tasks
- Data entry and input transactions, including checks issued, bills, invoices, and receipts
- Create customized templates for invoices, statements, estimates, and purchase orders
- Outsourcing payroll services
- Manage Accounts payable (AP) processing
- Manage Accounts receivable (AR) processing
- Provide Human Resources and employee management services
- Sales tax specialist
- Financial reporting required for year-end tax preparation
Outsourcing your bookkeeping and accounting provides all the benefits of an on-site, full-time bookkeeper at a fraction of the expense. An additional benefit of outsourcing is that the scope and variety of services can evolve and change along with your business.
Benefits of Outsourced Bookkeeping and Accounting: What are they?
Outsourced bookkeeping and outsourced accounting services offer expertise and quality at a level that most small businesses cannot afford to hire in-house. Cloud-based accounting software can work with your outsourced accountant or bookkeeper by facilitating and automating bill payments and invoicing. In addition, these services can afford small businesses real-time accounting information by providing current account balances, revenue statements, and other financial information. Combining the skills and expertise of the outsourced bookkeeper or accountant coupled with the real-time status of cloud-based accounting software creates an environment for well-informed financial decisions.
There are numerous advantages to hiring outsourced bookkeeping or accounting services, including:
Financial management
Ok, we know the truth. No one likes bookkeeping except us. However, you will be in the dark regarding your business’s financial health without consistent bookkeeping. If you stop doing your bookkeeping or have not done any bookkeeping, you will not have a clear picture of your company’s financial health. Think about that for just a moment. How many decisions and business interactions require financial information to proceed?
Cost-effective
A fully burdened headcount for each full-time bookkeeper and accountant could cost more than $110,000 a year or more, depending on your geographic location. Outsourced equivalents are minimal in comparison.
Reduces Fraud
It is simple. The number one reason you should outsource your bookkeeping is fraud. In small businesses, fraud results from a lack or absence of controls, which an employee can exploit. Using an outsourced bookkeeper can ensure proper practices are in place, which can quickly be addressed by implementing accounting processes that are easy to execute.
Trained and skilled help
Hiring an outsourced bookkeeping service gives your business instant expertise from an experienced and qualified bookkeeper.
Scalability
Engaging with an outsourced bookkeeper or accountant allows the business owner to start small and expand as the business grows. For example, a start-up company with two employees still needs a bookkeeper, and as the company grows, so can the services provided by the outsourced bookkeeper!
Benefits of Outsourced Bookkeeping and Accounting: Why hire an outsourced bookkeeper?
Outsourcing eases the burden and stress of arguably one of the most critical business functions. Running a successful business is hard work. Bookkeeping is challenging for even the most experienced business owner. By outsourcing financial activities that are routine, administrative, or require specialized skills, you can focus your energies where you are needed most. Then, with the burden of your financials and back-end bookkeeping tasks off your plate –you can focus on business growth and sustainability.
Capital CFO+ believes in the strength and success of placing the bookkeeper that is the best fit for each client on their account. Our clients entrust their financial tasks to us as we perform their bookkeeping and CFO duties. Success comes from understanding a client’s business, concerns, and stresses and placing ourselves within their organization to support them.
Choose Capital CFO+. Contact us for a free consultation.
About Capital CFO+
Capital CFO+ LLC is based in Saratoga Springs, New York, providing bookkeeping, accounting, and CFO services. Capital CFO+ helps small firms access the economies of scale, efficiency, and expertise that large companies enjoy. Visit Pearl, our branch manager, at capitalcfollc.com or LinkedIn for more information.
