Deciding What and When to Outsource Bookkeeping Services
There are professionals over the border that will take care of all your needs for a fraction of the price. Read this article to find out the best time and the best way to outsource bookkeeping services.
Before we get into outsourcing anything, we need to establish the terminology. Bookkeeping is a necessary process that entails keeping track of all your expenses and profits to analyze them later.
Knowing the financial flow of your business will help you determine the best time to invest and which expenses can be lowered to optimize your business.
You must have a good bookkeeper for any business. If you have a slight mistake in your books, it can not only doom your business in the future, but it can also get you in trouble with local law due to tax issues. If you are not confident of handling it yourself, it’s always a good idea to outsource your bookkeeping services to experts like the Back Office Pro professionals.
In case you’re thinking of outsourcing your bookkeeping needs, you need to think about how and when it’s best to do it. Here are some things you should keep in mind if you’re wondering when the best time to outsource is.
When to Outsource?
Start of the Year
You should consider outsourcing your bookkeeping needs at the beginning of every year, to save money and start the year off with a clean slate.
End of the Month
Most companies won’t have the luxury of outsourcing their bookkeeping needs at the beginning of the year, but another strategy does exist. Outsourcing your bookkeeping needs at the end of the month lets you hire a professional bookkeeping company that is going to carry on the business, presuming that your books are kept up to date.
At the End of a 2-Week notice
If you have an existing bookkeeper who gave in their two-week notice, you should consider hiring a bookkeeping company right at that moment.
Your new bookkeeper can work in cooperation with your existing bookkeeper to make sure that they sync in, and that the new employee can carry on the job in the same manner.
Outsourcing is Cost-Effective
Bookkeeping services are critical, but they never come cheap. Outsourcing your needs to a foreign professional bookkeeping company might save a lot of money in the long run.
Having a faulty bookkeeper can cost you a lot of money in overdue fees and paychecks. Hiring someone over the border is much cheaper and cost-effective.
Finding the Right Fit
Bookkeepers have access to vital and sensitive information, so working with someone you can trust is of the highest importance. When hiring a single bookkeeper, you might want to ask about referrals, outsourced or not.
Each industry has a different set of expenses and quirks, so you need to find someone who has already worked in your field. This is much easier if you outsource.
Bookkeepers can do so much more than document your expenses and cash flow. A good bookkeeper can make it, so you’re never in financial trouble, and make significant predictions that you might have a problem with.
Their input is vital when making any investment, so you need to make sure you’re hiring the best of the best. The best of the best don’t come cheap, but they do come cheaper if you’re outsourcing.
Now that we’ve established the when we’re going to get into the why.
Privacy is of the utmost concern when it comes to any business, and you’re giving your bookkeeper access to the most sensitive information.
You might want to keep all of that information secret from your local area, and hiring someone that is miles away to do this achieves just that. Discretion and privacy are of the utmost concern when it comes to bookkeeping.
You need to be sure about the sheer size of your business before hiring a professional to keep your books. You don’t want someone who is used to maintaining books for Google, to keep books for your local candy shop, do you?
Outsourcing your needs ensures that you will be working with an experienced professional working for the scale that your business is operating on.
Training and Management
You aren’t a bookkeeper yourself, and you can’t paint the unique picture of your business to your fresh out of college employees.
Outsourcing your needs matches you with a professional that has already worked on countless projects such as yours, and you’re guaranteed a professional service for a fraction of the price.
Maximize your Resources
You can attempt to do your bookkeeping yourself, as it might seem extremely simple in theory. Maybe you’re a little short on money this month, and you can’t afford a professional to keep your books.
Outsourcing your business not only saves you a lot of money in both the short and long run but frees up your time which you can use to focus on more critical parts of your business. That is why it is a good idea to outsource bookkeeping services.
Central Data Storage
Keeping your data centralized is extremely important. Having your data scattered everywhere can be a real nightmare when it comes to predictions and taxes, as you need it available at that exact moment.
Outsourcing your needs will assure that you have insight into your books 24/7 and that they are organized in an easy-to-view manner.
In conclusion, when you’re looking to outsource your bookkeeping needs, you need to remember the five golden rules.
You need to find an experienced bookkeeper to get the best possible service. Time is money, and when outsourcing, you don’t pay a full-time salary for someone who you need only occasionally.
When you’re picking a bookkeeping company, you need to make sure they’re up to date with their technology to provide the best service. Ask around!
Companies are better than individuals since instead of one person working on your books, you have an entire team. Most often, this is also the cheaper alternative!
Moreover, the safety of your information is of the utmost importance. And having your books both on the cloud and on paper is the safest way to go!