Outsourced bookkeeping refers to the practice of hiring an outside company or individual to handle the bookkeeping tasks of a business or organization. The bookkeeping process can include recording financial transactions, reconciling bank statements, maintaining the general ledger, and preparing financial statements.
Benefits of Outsourced Bookkeeping
Outsourced bookkeeping services can provide many benefits to businesses, such as:
- Cost savings: Outsourcing bookkeeping tasks can save businesses money in the long run because it eliminates the need to hire and train in-house bookkeeper full-time.
- Increased efficiency: Outsourced bookkeepers often have more experience and specialized training than in-house staff, which can result in more accurate and efficient bookkeeping.
- Flexibility: Outsourced bookkeepers can work on a part-time or as-needed basis, which gives businesses more flexibility in terms of staffing.
- Access to the latest technology: Outsourced bookkeeping companies often have access to the latest accounting software and tools, which can improve the accuracy and efficiency of the bookkeeping process.
Outsource Bookkeeping to Save Time, Money, and Effort
Frees up time: Outsourcing bookkeeping tasks allows the business owner and other employees to focus on their core competencies and responsibilities, leading to better productivity.
Many small or large businesses find that outsourcing their bookkeeping tasks is a cost-effective and efficient way to manage their finances. Before outsourcing, a company should ensure the bookkeeping service provider is qualified, reliable, and trustworthy. They should be able to give the company access to their financial records, have the necessary insurance, and have a good reputation.
Who is a Certified Bookkeeper?
Certification in bookkeeping shows the bookkeeping skills of the person or team you will hire. A certified bookkeeper (CB) is a professional bookkeeper who has met specific education and experience requirements and passed a certification exam.
The process of certification is designed to ensure that bookkeepers have enough knowledge and necessary bookkeeping skills.
Organizations that provide certification for bookkeepers are:
- American Institute of Professional Bookkeepers (AIPB)
- National Association of Certified Public Bookkeepers (NACPB)
- National Bookkeepers Association (NBA)
Intuit Bookkeeping Certification
Intuit is a software company that offers a variety of financial management tools, including QuickBooks, which is widely used for bookkeeping. The company also offers a certification program for individuals who use QuickBooks for bookkeeping.
The QuickBooks certification program is designed for individuals who are already familiar with the software and have experience using it for bookkeeping. The certification program is available in several levels, including:
- QuickBooks ProAdvisor Certification
- QuickBooks Online Advanced Certification
- QuickBooks Desktop Advanced Certification
Bookkeeping companies usually offer different pricing plans and services depending on the needs of their clients; some may have entry-level, standard, and premium plans. Some also offer virtual bookkeeping, where they provide all services remotely, while others may provide on-site bookkeeping.
It’s also important to mention that some small or solo bookkeepers offer their services independently, and you can find them through online platforms, networking, or even through personal referrals. It is very important to research and compares all the available options before choosing a bookkeeping company to ensure you find one that best suits your needs and budget.
Small Business Bookkeeping Companies
Small business bookkeeping companies provide bookkeeping services to other companies, typically small to medium-sized businesses. These services include the following tasks;
- Recording financial transactions
- Reconciling bank statements
- Generating financial reports
- Tracking and paying bills
- Creating and sending invoices
- Assisting with budgeting and forecasting.
Small business bookkeeping companies can be local or national and may be standalone companies or divisions of larger accounting firms. Some companies may specialize in specific industries, such as retail, healthcare, or construction. Many companies use cloud-based software, such as QuickBooks, Xero, and Wave. They provide outsourced bookkeeping remotely and allow their clients access to their financial data 24/7.
Online Bookkeeping Services for Small Business
There are several online bookkeeping services available for small businesses to outsource bookkeeping. These services typically use cloud-based software to allow companies to access and manage their financial information anywhere with an internet connection. QuickBooks Online, Xero, and Wave are some of those popular options. Online bookkeeping services often offer a range of features such as invoicing, expense tracking, and financial reporting. They also can integrate with other business tools, such as payment processors, payroll systems, and banks. Many of these services offer different pricing plans, with options for businesses of different sizes and needs. Some also offer a free trial to try the service before committing to a paid plan.
Bookkeeping Services Cost
Before you outsource bookkeeping tasks, you need to know how much does it cost to hire a bookkeeper. The cost of bookkeeping services can vary depending on the provider, the required service level, and the company’s location. Some bookkeepers charge an hourly rate, while others may charge a flat rate or a monthly retainer.
Here are a few examples of the general cost ranges for different types of bookkeeping services:
- Part-time, entry-level bookkeeper: Hourly rates can range from $20 to $50.
- Experienced, full-time bookkeeper: Hourly rates can range from $50 to $100.
- Bookkeeping firm or CPA: Hourly rates can range from $75 to $150.
- Virtual bookkeeping services: these services offer bookkeeping through online platforms, and its cost can vary from $200 to $700 per month, depending on the volume of transactions and the level of service. Sometimes they offer bookkeeping price packages.
It’s important to note that these are only rough estimates, and the actual cost will depend on your business’s specific needs and the services you require. Some bookkeeping service providers also offer different plans and packages. Their bookkeeping price changes depending on how many transactions you have, how complex your books are, how much integration with other tools and add-ons is necessary, etc.