You are a small business owner, you handle your own marketing, sales, purchases,bookkeeping, customer relations and other business aspects. Bookkeeping, which is very crucial for business, can take a long time to perform. Not everyone is good at it anyway because of its complexity. 

So what should be done in this situation? 

To avoid the negligence of bookkeeping you can hire a bookkeeper from an external source. So let’s talk about whether you should outsource bookkeeping for your small business!

What is Outsourced Bookkeeping?

To understand why you need to outsource bookkeeping, firstly, it’s important to understand what it is!

Outsourced bookkeeping is a practice where the owner brings a bookkeeper from a firm or hires an individual from outside to take care of its bookkeeping task. They will record and categorize financial transactions and put together financial statements, balanced sheets, and other financial reports. 

 Having an in-house bookkeeper can be expensive, so as a small business owner, it’s more cost-effective to outsource bookkeeping. 

What Kind of Tasks Outsourced Bookkeepers Perform?

Just like an in-house bookkeeper, they will perform all the tasks as them, including recording all the financial transactions accurately. Processing your receipts, expenses, and payments. However, you have the option to choose what kind of task the bookkeeper will do for you and pay accordingly. Mainly they will do:

• Gathering and assembling financial data.
• Categorizing and organizing the collected data.
• Preparing payrolls
• Reconciling bank accounts 
• Managing accounts receivable and accounts payable
• Assist the business in preparing for the tax season.
• Engaging in financial planning and forecasting.
• It helps to prepare a budget for your business.

6 Reasons To Outsource Bookkeeping for Your Small Business

There are lots of benefits to talk about, but we will mainly focus on the major 6 benefits.

1. Cost Effective

Perhaps one of the biggest benefits is that you can save lots of money by hiring a bookkeeper from outside. When you bring on a full-time bookkeeper, you need to cover their pay, insurance, perks, and other costs, which can really add up for small business folks.

Bookkeepers who work for you from somewhere else usually get paid by the hour or every month. You don’t have to foot the bill for extra perks, and you don’t have to teach them the ropes either. This way, you’ll save cash, which you can put towards other areas of your business.

2. Save Your Time

Small business owners have lots of tasks to perform, and bookkeeping is one of the complicated tasks as it requires special skills. So, it can be very time-consuming for an inexperienced person. A pro bookkeeper from somewhere else can get all this done super fast and well.

3. Outsourced Bookkeepers Are Way More Experienced

To complete your bookkeeping, it’s always better to hire an experienced bookkeeper for your small business. There are complex tasks like keeping financial records or making financial reports that a skilled professional can do accurately.

4. Maximum Accuracy

Bookkeeping requires 100% accuracy because if you make any mistake, it can impact your entire financial reports. So it’s very important to do it without any room for error. Professional bookkeepers use advanced software to record transactions, which can generate detailed financial reports. 

5. Hassle Free Tax Season

Tax season is super stressful for small business owners, especially if you neglected bookkeeping for a long time. As a result, you may not have all the required documents for tax. But if you’ve got some good bookkeepers on your team, they’ll get everything neat and tidy for the tax accountant to work through smoothly.

Your team will sort, write down, and keep everything neat and tidy for the tax accountant to work through smoothly.

6. Access to New Technology

Professional bookkeepers use advanced software to perform their bookkeeping duties. When you outsource, you get access to these automation tools without having to buy pricey software. It will reduce errors and maximize accuracy. 

How to Choose the Right Bookkeeping Firm or individual

 Now, if you decide to hire outsourced bookkeeping, you must be wondering how to choose the right firm or individual. Allow us to give you some suggestions to help you make the right choice. 

• Check how experienced they are; as it’s mentioned before, experience does come handy in the world of bookkeeping. They’ll know more about your specific financial needs, rules, and how things work inside your company.
• You can choose which bookkeeping service you need; small business owners don’t need advanced bookkeeping. So during the hiring process, discuss your needs.
• Check their credentials; it’s important to verify how qualified they are. Look for certifications such as Certified Public Accountant (CPA) or Certified Bookkeeper (CB) while hiring. 
• While hiring them, spend some time checking out how well-reputed they are. Look for online reviews, testimonials, and case studies. How good are they? Do they have a past history of committing fraud? How good are they at providing customer service? 
• It’s a good sign if any clients or anyone refers the firm or individual to you. 
• Understand their bookkeeping methods. You need to know what kind of advanced software they are using to do bookkeeping. 
• Confidentiality is the key; since it deals with sensitive data, you should ensure before hiring how they are going to manage your data with privacy. 

How Bookkeeping Deck Can Help You?

Our experienced team of bookkeepers offers personalized bookkeeping services, ensuring compliance with current financial rules. You can trust us to handle your financial records securely, from transaction tracking to tax preparation. Our goal is to save you time, allowing you to concentrate on business growth. We provide affordable, flexible plans and are always ready to help.