As a business owner, you know that managing your finances effectively is essential for success. However, handling bookkeeping in-house can be time-consuming, complex, and costly. That’s where outsourced bookkeeping comes in.
For many business owners the difference between outsourced accounting and outsourced bookkeeping is virtually indistinguishable. After all, both involve the day to day running of the company’s finance and accounting functions. At Signature Analytics, we think of bookkeeping as just another way to talk about a business’ accounting functions. While we don’t offer bookkeeping as a standalone service, our outsourced accounting teams provide the highest caliber of day-to-day boots on the ground accounting support for our clients.
In this blog post, we will explore what outsourced bookkeeping is, why it’s important, how it works, and the reasons why you should consider outsourcing your accounting and bookkeeping to a trusted partner like Signature Analytics.
What is Outsourced Bookkeeping?
Outsourced bookkeeping refers to the practice of hiring an external accounting firm or bookkeeping service provider to handle your company’s financial records, transactions, and reporting. Instead of having an in-house team, you can outsource these tasks to a specialized provider, who will handle them on your behalf, typically using cloud-based accounting software.
What Do Bookkeepers Do & Why Are They Important?
Bookkeepers play a crucial role in maintaining accurate financial records and ensuring compliance with accounting standards and tax regulations. They handle various tasks, including recording financial transactions, reconciling accounts, managing invoices and expenses, preparing financial statements, and providing financial reports. Bookkeepers are essential for businesses as they provide accurate and up-to-date financial information, which is crucial for making informed decisions and managing cashflow effectively.
How Does Outsourced Bookkeeping Work?
Outsourced bookkeeping typically involves partnering with a professional accounting firm, like Signature Analytics, that specializes in providing accounting services. The process starts with our comprehensive Assessment which is designed to help us understand your business’s financial needs and goals.
Once the scope of work needed and pricing are agreed upon, we set goals and KPIs and a roadmap for your company’s accounting. Our outsourced accounting team sets up the right systems to collect and process your financial data. This involves providing access to your financial accounts, implementing cloud-based accounting software, and establishing communication channels for ongoing collaboration.
When you work with an outsourced accounting / bookkeeping team like Signature Analytics, we then handle all the day-to-day bookkeeping and accounting tasks, providing regular financial reports and insights to help you make smart decisions about your business.
5 Reasons to Outsource Your Bookkeeping
- Cost-Effective: Outsourced bookkeeping can be more cost-effective compared to hiring an in-house bookkeeping team. With outsourced bookkeeping, you can avoid costs associated with hiring, training, and managing employees, as well as providing employee benefits and office space. You can also access specialized expertise at a fraction of the cost of hiring a full-time bookkeeper.
- Time-Saving: Managing bookkeeping in-house can be time-consuming, taking away valuable time and resources from your core business operations. Outsourcing bookkeeping allows you to focus on growing your business and leave the financial tasks to the experts, saving you time and effort.
- Expertise and Accuracy: Outsourced bookkeeping providers are specialized in their field, with expertise in financial accounting and reporting. They are skilled at accurately recording financial transactions, reconciling accounts, and preparing financial statements, reducing the risk of errors and ensuring compliance with accounting standards and tax regulations.
- Scalability: Outsourced bookkeeping can easily adapt to your business’s changing needs. Whether you are a small start-up or a growing enterprise, the outsourced bookkeeping provider can scale their services up or down based on your requirements, providing flexibility and cost savings.
- Access to Advanced Technology: Outsourced bookkeeping providers typically use advanced cloud-based accounting software, which provides real-time access to financial data, automation of repetitive tasks, and enhanced data security. This allows you to have a streamlined and efficient bookkeeping process, with access to accurate and up-to-date financial information.
Costs Associated with Outsourced Bookkeeping
The costs associated with outsourced bookkeeping and accounting can vary depending on the size and complexity of your business and the scope of services provided by the bookkeeping provider. With Signature Analytics, our outsourced bookkeeping services are priced based on the complexity of a company’s financial records and the level of expertise required. We work on a monthly retainer base model and often provide customized pricing packages.
It’s important to note that while there are costs associated with outsourced bookkeeping, the benefits of increased accuracy, time-saving, access to expertise, scalability, and advanced technology can outweigh the costs in the long run. Outsourced bookkeeping can be a cost-effective solution compared to hiring and managing an in-house accounting and bookkeeping team.
Who Typically Outsources Their Bookkeeping?
Many businesses and industries benefit from outsourced bookkeeping, including professional services companies like marketing, advertising and PR, HR and IT, law firms, and more. These businesses often have unique financial needs and require specialized expertise in managing their financial records and transactions. Outsourced bookkeeping can provide professional services companies with the necessary expertise and flexibility to handle their bookkeeping efficiently while they focus on their core operations and growth strategies.
Best Factors to Look for in Outsourced Bookkeeping
When considering outsourcing your bookkeeping and accounting, it’s important to look for a reputable and experienced accounting firm that specializes in your industry. Some of the best factors to look for in outsourced bookkeeping include:
Look for a provider with a team of experienced and qualified bookkeepers who are well-versed in financial accounting and reporting, and are familiar with the unique requirements of your industry.
Choose a provider that offers customized solutions tailored to your specific business needs, rather than a one-size-fits-all approach. This ensures that the bookkeeping services are aligned with your business goals and requirements.
Technology and Security:
Ensure that the outsourced bookkeeping provider uses advanced cloud-based accounting software that provides real-time access to financial data and offers enhanced security measures to protect your financial information.
Communication and Collaboration:
Look for a provider that maintains open and transparent communication channels, and encourages collaboration to ensure that you stay informed and involved in the bookkeeping process.
Reputation and References:
Check the provider’s reputation in the industry and ask for references from their existing clients. This can give you insights into their reliability, professionalism, and quality of services.
Our Outsourced Bookkeeping Process & Services
At Signature Analytics, we offer comprehensive outsourced accounting and bookkeeping services. Our process starts with a thorough assessment of your business’s financial needs and goals. We then set up a system to collect and process your financial data, using advanced cloud-based accounting software.
Our team of experienced bookkeepers handles all the day-to-day bookkeeping tasks, providing you with regular financial reports and insights to help you make informed decisions about your business. Our services include financial transaction recording, accounts reconciliation, invoice and expense management, financial statement preparation, and customized reporting to track utilization rates, profitability, cost controls, and client by client profitability metrics.
How Outsourced Bookkeeping Can Grow Your Business
Outsourced bookkeeping / accounting can be a strategic move for your business, unlocking various opportunities for growth. By outsourcing your bookkeeping to a trusted provider like Signature Analytics, you can:
Focus on Core Operations:
Outsourced bookkeeping allows you to focus on your core business operations, such as marketing, sales, and client services, without being bogged down by financial tasks. This can help you allocate your time and resources more effectively and drive business growth.
Make Informed Decisions:
Accurate and up-to-date financial information provided by outsourced bookkeeping can help you make informed decisions about pricing, cost controls, profitability, and client management. This can result in better financial performance and improved profitability.
Enhanced Financial Management:
Outsourced bookkeeping provides you with professional financial management that can help you better understand your financial position, manage cash flow, and make strategic financial decisions. This can lead to improved financial stability and growth for your business.
Outsourced bookkeeping can easily adapt to the changing needs of your business. As your business grows, the volume and complexity of financial transactions may increase. Outsourced bookkeeping services can scale up or down to accommodate these changes without any disruption, providing you with a flexible and scalable solution.
Access to Expertise:
By outsourcing your bookkeeping, you gain access to a team of experienced bookkeepers who are well-versed in financial accounting and reporting. They can provide valuable insights, financial analysis, and expertise to help you make better financial decisions for your business.
Outsourcing your bookkeeping can result in cost savings compared to hiring and managing an in-house bookkeeping team. With outsourced bookkeeping, you don’t have to worry about costs associated with salaries, benefits, training, software, and infrastructure. This can free up valuable resources that can be invested in other areas of your business.
Discover How Signature Analytics Can Help You
At Signature Analytics, we are a leading provider of outsourced accounting and outsourced bookkeeping services. Our experienced team specializes in managing the unique financial needs of businesses in a wide variety of industries such as professional services, IT and Tech firms, BioTech and Life Science companies, Manufacturing and distribution., Wellness and recovery centers, law firms and many more. With our comprehensive bookkeeping services, advanced technology, and customized solutions, we can help you streamline your financial processes, improve financial visibility, and make informed decisions to drive business growth. Contact us today to learn more about how Signature Analytics can support your business’s accounting and finance needs.