CPA firms and professionals constantly strive towards maximising growth and increasing productivity. As a result of which, business processes outsourcing has gained a lot of traction. Lately accountants have turned towards outsourced bookkeeping services in order to disburden in-house teams whilst maintaining growth.
Certainly, outsourced bookkeeping services are a great way to achieve this – but it also begs a few questions. What is outsourced bookkeeping? How does outsourced bookkeeping work? What can an outsourced bookkeeper do for you? What are the benefits involved?
With the purpose of helping you decide on the perfect bookkeeping solution as per your needs, this article covers the following points:
What are Outsourced Bookkeeping Services?
At this stage, your business is growing and you are busy bringing in new clients regularly. Pertaining to that, you have decided to move bookkeeping to an outsourced partner. In essence, outsourced bookkeeping refers to hiring an outsourced professional/team to look after the bookkeeping activities for your business. Outsourced bookkeeping service providers are business who possess area-specific expertise in handling bookkeeping affairs for their clients.
How does Outsourced Bookkeeping Work?
Outsourcing bookkeeping is a fairly straightforward process, of course it has to do with the kind of partner you work with.
Established outsourced bookkeeping professionals will have a robust process in place. How it usually operates is:
To begin with, you set-up a meeting with the bookkeeper of your choice. Together, a scope of work is established. At this point, it falls upon the manager to clearly communicate the needs and desired outcomes from an outsourced bookkeeper.
Based on this dialogue, the outsourced bookkeeping firm can suggest the kind of team that can be employed to undertake the tasks and cater to client needs. The best part of working with an outsourced bookkeeper is that you have the option to upscale as your business evolves.
Based on the client needs, the outsourced bookkeeper will assign a team of bookkeepers. This team of professionals will have the appropriate knowledge and expertise to serve the client. The nature of the work as well as the time-frame usually decides the team that will be employed.
Once the team has started working on assigned tasks, all that remains is to have a review and feedback procedure in place. The client can implement a review system of his/her choice and the outsourced bookkeeper will abide by the same.
What can an Outsourced Bookkeeper do for you?
According to a recent report, the global business process outsourcing industry was valued at USD 221.5 billion in 2019. The same is expected to grow at a CAGR of 8.0% in the next 5-7 years. These numbers are a strong indicator of how expansive the industry is.
Depending on the outsourced bookkeeping services provider you partner with, the scope is tremendous. It is important to know that there is some grey area in accounting bookkeeping and taxation. The role your outsourced bookkeeper plays for you is based entirely on the working arrangements.
For starters, an outsourced bookkeeping professional will be able to undertake the following tasks:
To begin with, an outsourced bookkeeper will be able to gather crucial financial information from bank statements, credit card statements and bring them together in a more accessible manner. Additionally, the bookkeeper will analyse all the debit and credit entries and prepare a reconciliation report. This will help you to understand the movement of funds within and outside the business.
Through this exercise, the bookkeeper will make sure that each amount has been accounted for and that there are no missing or false entries in the book of accounts. Bookkeepers are experts in tracking and grouping entries including accounts payables and receivables charts in order to streamline the books.
As a business, it is essential to have a clear and accurate book of accounts. Outsourced bookkeepers will thoroughly monitor financial activity to make sure that books are clean and up-to-date. This will have multiple benefits. One, you will have access to most up-to-date financial information regarding your business. Second, when applying for a loan, a well formatted book of accounts adds weight to the operational efficacy, thereby increasing trust of investors in the business.
The chief task for a bookkeeper is to make business and life easy for the client. Hence, a bookkeeper will keep ahead of the business. The professional will be able to provide essential financial reports such as a Profit and Loss account, cash flow statements and balance sheets. The benefit here is that, the same can be availed at a monthly, quarterly and a yearly basis using an outsourced bookkeeping professional. This relevant and crucial information will enable you to take prompt business decisions as required.
Certainly, the scope of activities that a bookkeeper can perform goes far beyond than those mentioned above. As outlined before, it is worth making sure that your expectations are in line with the offerings of the outsourced bookkeeper.
What are the benefits of working with an Outsourced Bookkeeping Service?
This part of the article is the most obvious yet, is misinterpreted by many. Outsourced bookkeeping professionals can literally carry a ton of advantages for your business. A lot of it has to do with how efficiently you manage the partnership. The evident benefits of employing an outsourced bookkeeper are as follows:
To a CPA, time is evidently the most important resource, followed by clients, business relationships etc. When you outsource, you take away a lot of non-essential tasks from your list of things to do. In this regard, non-essential tasks refers to tasks that have little influence on business growth. An outsourced bookkeeping services team will manage all your financial tasks for you. The same tasks done by an in-house team would take a lot time, and of course will cost a fortune as well.
Crunching numbers, going through datasheets to prepare financial reports is time-consuming and requires a keen attention to detail. Outsourced bookkeeping team will employ a multi-step process to make sure that all reports are free from errors.
Accuracy is paramount when finances are involved, the slightest error can cause a problems. With the assistance of an outsourced bookkeeping service, you can avail analysed financial reports right when you need them.
Outsource to Grow! Outsource with Initor Global!
Your business has reached a stage where you need to dedicate more time to your clients, business growth, and employee relations. This is the right time to consider Outsourced bookkeeping services and grow your business.
Initor Global is one of the leading bookkeeping outsourcing services providers. We assist CPA firms with bookkeeping services across the United States. Years of experience has enabled us to work with a diverse range of clients across varied business areas. Connect with us to understand how Outsourced Bookkeeping Services from Initor Global can propel your business to growth!