Table of Contents
Introduction
Bookkeeping is an integral part of any business operation. Whether you are a growing company or an established enterprise, bookkeeping helps you maintain an accurate record of all your financial transactions, from operating costs to investing and financial decisions. As a growing company, it is vital for your growth as it helps you with financial planning, enables better financial management, facilitates tax compliance, and supports fundraising efforts. Keeping accurate financial records allows you to grow and succeed by making financially informed decisions.
Every organization, big or small, will have a team of F&A expert’s comprising accountants, bookkeepers, tax experts, and auditors overlooking their financial operations. However, it can be overwhelming for a growing organization to keep track of its financial operations in-house. Both in terms of resources and cost, it can be a huge burden. This is why modern businesses have started looking at outsourcing as an effective alternative to their financial woes. With this blog, we will be taking a closer look at outsourcing bookkeeping services and how it can help growing organizations establish their business without worrying about their books.
Advantages of Outsourcing Bookkeeping Services
1. Stay Focused on Core Business Functions
Maintaining accurate & up-to-date accounting books is a painstaking task; don’t let anyone tell you otherwise. Even bank bookkeeping experts with years of pedigree will agree to it. Add to it the pressure of running and growing a business, and you are looking at a seemingly nightmarish situation for everyone involved. This is why business owners looking to grow their companies outsource bookkeeping services for handling their books. It takes a huge overhead burden from them and allows them to focus on their core business functions.
Here is how the outsourcing bookkeeping services provider do it:
- Eradicating the Cost & Time of Hiring: Hiring specialized F&A resources can be time-consuming and expensive. And while you can justify the cost and effort in the short run, as your business grows, it gets tougher. However, that’s not the case if you have an outsourcing bookkeeping service provider overlooking your F&A needs.
- Easy Accounting Scalability: As your business grows, your accounting liabilities grow. You will have to manage complex tax regimens and various audit, accounting, and bookkeeping aspects. And if you have an outsourcing accounting partner for your business, you can quickly scale your accounting function as and when needed.
- Automation & Technology Know-How: Integrating automation and technology can make modern accounting processes seamless. However, investing time and resources in upskilling the in-house F&A function can be laborious for a business owner. An easy way out is to partner with an outsourcing bookkeeping provider. These service providers have F&A talent well versed with the new-age F&A automation and technology, which makes it easier for them to understand your business requirement and tailor a solution immediately. Having the right automation and technology also significantly reduces the risk of errors, as it requires minimum human intervention.
2. Compliant & Error Free Bookkeeping
Outsourcing bookkeeping services serve many customers with different business sizes and hailing from diverse industries. This makes them proficient in delivering error-free services, ensuring that financial records are accurate, up-to-date, and compliant with all legal and regulatory requirements. Some of the most common practices observed at these outsourcing accounting service providers include the following:
- Skilled Professionals: Outsourcing bookkeeping services hire qualified and experienced professionals with rich experience maintaining accurate financial records. These individuals are well-versed in accounting practices and know the inside-out of the latest accounting software and technologies to ensure error-free operation at all times.
- Quality Assurance:Â Outsourcing bookkeeping service providers have a dedicated quality assurance process, which ensures timely review and checks of all the financial records in place. This also ensures that all the records are always accurate and up-to-date, with no place for errors and omissions.
- Regulatory Compliance: Bookkeeping service providers cater to a wide range of organizations from around the globe and, thus, are well-versed in regulatory compliance. This makes them suitable to handle and meet all legal and regulatory requirements. As a result, your business gets protection from penalties and fines.
3. Recommendations for Choosing the Right Bookkeeping Service Provider
If you are a growing business looking for an outsourcing bookkeeping service provider, here are some of our expert recommendations to help you find the right bookkeeping service provider for your growing company:
- Define your Bookkeeping Needs: Every business will have a different bookkeeping ask; this is why it is crucial to determine and identify your bookkeeping needs before you plan to outsource bookkeeping services. Some tasks that you can consider outsourcing may include reconciling bank accounts, recording transactions, preparing financial statements, and managing accounts payable and receivable.
- Check For Experience and Expertise: Any accounting task takes years to perfect, so when searching for an outsourcing bookkeeping service provider, you must always check the track record of your potential partner regarding providing bookkeeping services to businesses similar to yours. You can enquire about their experience, skills, and industry expertise.
- Check their Certifications: A good indicator of a good outsourcing bookkeeping service provider is having certifications from organizations such as the National Association of Certified Public Bookkeepers (NACPB), American Institute of Professional Bookkeepers (AIPB), or QuickBooks ProAdvisor program.
- Technology and Tools: Technology and automation are crucial in any outsourcing job. Finance and accounting are no different. So, always ensure your outsourcing bookkeeping service provider is well-versed with modern technology and tools to handle your bookkeeping and financial tasks well. You must always partner with a service provider with expertise in Cloud-based accounting software such as QuickBooks, Xero, or FreshBooks; this will make it easier to access your data in real time and from anywhere.
- Value for Money: One of the reasons why companies choose to outsource their bookkeeping and finance tasks is cost savings. Thus, it would be best always to compare the pricing of all the outsourcing service providers you have shortlisted to ensure that you are getting the maximum bang for your buck. However, the cheapest option may not always be the best one. So, do check or ask for testimonials or reviews regarding the service and expertise of your bookkeeping service provider.
Conclusion
Finally, while outsourcing bookkeeping services has many advantages for growing companies, it will require a meticulous approach from the business owners to implement it successfully. Thus, if you are planning to embark on your outsourcing journey, ensure you have all the checks and balances in place. Alternatively, you can always write to us at: marketing@datamaticsbpm.com, and we will have one of our F&A experts reach out to you to get you started.
