With Bookkeeper360, you’ll get a dedicated virtual accountant who sends detailed reports on a monthly basis. Unlike most other outsourced bookkeepers on our list, Merritt Bookkeeping doesn’t offer any in-house add-ons for on creative accounting 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. Second, freelancers are usually contracted workers who are hired to help balance your books, while firms are dedicated accounting companies that solely focus on that goal.
Virtual accounting FAQ
With Bench’s Catch Up Bookkeeping services, a Bench bookkeeper will work through past months of disorganized bookkeeping to bring your accounts up to date. First, local bookkeeping is usually done with pen and paper, while virtual bookkeeping takes this service into the digital realm. Thanks to the numerous options out there, you can find the solution that works best for your specific needs and preferences. Whether you have a small, growing, or large business, you can find a dedicated bookkeeper how to calculate percentages for all types of companies. All outsourcing companies have unique qualities but differ in many ways. It’s best to create a pros and cons list of companies when outsourcing bookkeeping so you’ll know you’ve made the best choice.
How to Outsource Bookkeeping
- Derek Gallimore has been in business for 20 years, outsourcing for over eight years, and has been living in Manila (the heart of global outsourcing) since 2014.
- If there’s no one on staff with bookkeeping experience, it might make sense for your company to hire someone specializing in this area.
- Bookkeeper360 offers a pay-as-you-go plan that costs $125 per hour of on-demand bookkeeping support.
- Having an outsourced bookkeeping service provider is known to reduce many common errors made by business owners.
However, as with any in-person accounting professionals you’d trust with your financial data, you should always verify a bookkeeping firm’s credentials before committing to a monthly plan. The Essential plan ($249 a month if billed annually or $299 billed monthly) focuses on bookkeeping only, giving you access to a dedicated team that performs monthly bookkeeping services. The Premium plan ($399 a month if billed annually or $499 billed monthly) adds tax advising services, end-of-year tax filing, and financial strategy planning. Essentially, you’ll give a third-party bookkeeper access to important financial information like bank statements, payroll, tax documents, and your accounting software.
How QuickBooks Live can help
So understanding how an accounting partner or tool protects your financial information before you share it is essential. If you do decide to pay a third party to handle your accounting, be aware of the potential for scope creep. You’ll want to set clear expectations from the start about the scope of work, not to mention how to handle any tasks outside of that scope, especially if you’re paying hourly. An early and open discussion about this can keep you from being hit with unexpected costs down the line.
So you shouldn’t feel like you have to handle all the finances in your small business. Directly engage with potential providers and request a meeting to discuss your needs. Compare your options and choose a provider that meets your requirements and, of course, your budget. That’s why many businesses — from fledgeling startups to multinational enterprises — opt to outsource instead.
With outsourced accounting, your in-house team will not only be freed from the time spent overseeing financial functions. Your outsourcing provider can also help assess the best time to outsource your accounting services. Yes, virtual and outsourced bookkeeping is just as legitimate as in-house bookkeeping and accounting.
The main benefits of such an approach include meeting with the option premium – everything you need to know bookkeeper face to face, using physical records, and relying less on online payment and banking systems. A strong bookkeeping system is of vital importance for any company or organization. If you have a Certified Public Accountant (CPA), we can handle your monthly bookkeeping and then send your financials and tax prep info to your CPA at year-end. Clean and accurate books give your accountant less work to do and, ultimately, save you money. In an effort to avoid that pitfall, many companies fall into another one.
Get Inside Outsourcing
Typically, you’d only get detailed financial statements like this through a CFO — which means Merritt gives you some of the best aspects of having a CFO without the high cost. Make sure your small business is ready to have its bookkeeping outsourced. You can start by assessing how outsourcing will help meet your business objectives.
Outsourcing bookkeeping is cost-effective and will save your company money. Experienced bookkeepers are often better at finding overdue clients and cuts your company could make to increase overall profit. Plus, having an outsourced bookkeeper is more cost-efficient in the first place, since you’re not technically their employer. Bookkeeping can be a headache for big and small business owners —so much so that 46% of business owners said it was their least favorite task. The process of recording all financial transactions is often challenging and stressful, as there are many other important day-to-day tasks for startup business owners to handle.
As you grow, having a professional, outsourced accountant on your side gives you the advantage of proactivity rather than reactivity. Trained accountants can spot red flags ahead of time and notify you about things like cash flow discrepancies. You can also mitigate this concern by assessing the security measures of your potential provider. For example, Remote’s payroll services are protected by the latest ISO-standard security protections, with a 24/7 on-call security team. These kinds of steps can give you peace of mind and help ensure you avoid any costly slip-ups.
