Skip to main content

Bookkeeping is one of the tasks new and small businesses often try to manage on their own as long as they can. They try to juggle their books along with everything else in their business. But at some point, the receipts pile up and the bank statements become backlogged — and it’s time for a solution.

The solution is outsourced bookkeeping.

Let’s look at how you can save time and money through the benefits of outsourced bookkeeping.

What Is Outsourced Bookkeeping?

Outsourced bookkeeping is a service that enables businesses to pass monthly financial tasks over to a part-time partner. Outsourced bookkeepers work with businesses to manage monthly tasks such as:

  • Maintaining financial records
  • Recording income and expense transactions
  • Reconciling bank statements
  • Managing accounts payable and receivable
  • Generating financial reports

Outsourced bookkeeping services are flexible and structured to fit a business’s unique needs. A business may choose a provider who works as little as 2-3 hours a month or choose to work with a provider who becomes a partner in the business and offers more detailed financial services.

7 Benefits of Outsourced Bookkeeping

Outsourced bookkeeping helps business owners clear off their plate by passing important tasks over to a professional who has expertise and experience. This process frees up time and gives you expert eyes on your financial records.

Here are seven benefits of outsourced bookkeeping.

1. Comply with bookkeeping guidelines. Most business owners don’t have expertise in bookkeeping, yet they execute this task for their business. Working with a professional bookkeeper ensures you follow bookkeeping guidelines, regulations, and tax laws.

2. Develop high-level, accurate reporting. When your books are up-to-date and accurate, you can generate valuable reports for:

  • Tax planning
  • Tax filing
  • Securing funding
  • Engaging in acquisitions and sales

3. Control your cash flow. Real-time bookkeeping reports also help you run your business more smoothly by giving you a good look at your cash flow. With proper bookkeeping, you always know how much money is in the bank. An outsourced bookkeeping partner can create reports that support accurate financial forecasting and prevent cash flow issues.

Related: 12 Causes of Cash Flow Issues & How to Fix Them

4. Only pay for what you need. Your business may be ready for a bookkeeper but not ready for a full-time employee. Outsourced bookkeeping allows you to get the benefits of bookkeeping support without needing to hire a full-time employee. Plus, you can scale services to what your business needs. You can start small and then add on full outsourced accounting services as your needs grow and change.

5. Modernize your bookkeeping systems and software. Professional bookkeepers may have access to financial management systems and software that you don’t. They can help your business modernize your financial records by creating better systems that use technology and software to streamline and simplify processes.

6. Avoid bookkeeping errors. It’s no surprise that someone who isn’t a bookkeeping expert may make mistakes while managing the bookkeeping. An expert outsourced partner can ensure that you avoid errors such as:

  • Missing entries
  • Assigning the wrong categorization
  • Misreporting sales tax
  • Missing tax deductions
  • Misclassifying contractors, vendors, and employees

Related: 10 of the Most Common Bookkeeping Mistakes Small Businesses Make 

7. Free up your time! You have a business to run. You can stop spending time trying to figure things out on your own, getting backed up, and wasting time cleaning up errors. Get the time back to run your business with support that gets tasks done more effectively, efficiently, and correctly.

How To Get Started with Outsourced Bookkeeping

You have many options when it comes to finding an outsourced bookkeeping partner. To find a partner, start by considering your wants and needs. What unique qualities do you want in your bookkeeper? Do you want someone who specializes in your industry or who is highly recommended by other business owners you know?

Consider what level of quality and personal attention you want and need. Then, ask questions that help you build trust and find a bookkeeper who will turn into a true partner for your business. 

  • What services are included? Outsourced bookkeepers provide a variety of services. Review what services they offer and what services you need. Get a clear picture of what you will receive through your engagement.
  • What software and tools do you use? Since your bookkeeper won’t be on-site or using your computer system, ask about their choice of cloud-based software.
  • How do you ensure that data is secure? Find out how secure their chosen software is and how you can communicate and share data securely.
  • How do you communicate with clients? Define expectations for communication before you start working together. How will you communicate? How often will you communicate?
  • What do you charge? Discuss pricing for the services you need and also for costs if you expand to include other services as your business grows and your needs change.

Bookkeeping is a big part of your business. While you don’t need to manage the task on your own, ensure that you have the right partner for the job. Look for a trusted partner who can become an extension of your team now and in the future.

Start Reaping The Benefits of Outsourced Bookkeeping

If you are ready to start reaping the benefits of outsourced bookkeeping, CFO2U is here to help.

Our outsourced bookkeeping packages take financial recording off your plate and hands it over to the experts. We take a partner-approach to our services and get to know you and your business so we can provide exactly what you need to meet your definition of success.

A great outsourced bookkeeper can become part of your team. See how CFO2U can be the partner you are looking for. Schedule your intro call with team today.

Susan Nieland