Do’s and Don’ts of Hiring Outsourcing Bookkeeping Agency

November 14, 2019 - by Priyan Sharma

The management of a company’s financial standing has transcended beyond the traditional in-house bookkeeping for the monthly preparation of financial statements. This is because of the demands of professionalism in the responsibility. One common demerit of in-house bookkeeping is the probability of receiving month-end reporting that is below par and delayed.

When outsourcing bookkeeping to an agency, specific details have to be considered before making a choice. This is to avoid the problem of not receiving value for the money paid to the agency.

Do’s

  • Get a quote from different outsourced accounting firms to get the most competitive price. This is to avoid a hefty cost in the long run.
  • Check whether the agency has the necessary skills to do the job. You may have to investigate if the company possesses any of the qualifications such as AIA (Association of International Accountants), Institute of Certified Bookkeepers (ICB), Association of Chartered Certified Accountants (ACCA), Association of Accounting Technicians (AAT), etc.
  • Ask for testimonials received from their current and previous clients. This is to ensure the credibility of the outsourced bookkeeping agency. You may be in the wrong place if the agency lacks feedback from satisfied clients.
  • Get a virtual bookkeeping firm you can easily communicate with as well as one with a favourable turnaround time. In other words, get a provider that can meet your preferences.
  • Check the flexibility of their service level agreement and the conditions of their contract.
  • Check their versatility in the use of a variety of online accounting software.
  • Check what communication channels are they using like Skype, Zoom, Google Hangout and Gtalk.
  • Check agencies’ data security policies such as physical security and employee credibility.
  • Check which data-sharing platform they are using like Gdrive, Receipt Bank, Hubdoc and Dropbox.
  • Check with your outsourced accounting firm are they offering you a free trial offer or a pilot run.

Don’ts

  • Do not rely solely on cost while selecting an outsourcing accounting agency. This is because the provider may lack the technical ability to provide certain services to you. This can make your business get into trouble with tax authorities, especially.
  • Avoid outsourcing to uncertified providers in Xero/QuickBooks or any other accounting platform. The bookkeeping involves the handing over of classified information such as invoice and bank statements, loan statements, debtors and creditors lists, etc. to the agency.
  • Do not outsource to an accounting firm that is not within the range of the specifics of your industry or the service you render. Each industry has its specific nuisances; thus, experience in your specific industry matters.
  • Avoid giving the roles of bookkeeping as well as year-end accounting and taxes to the same accounting agency, especially when it is a CPA firm.

Thus, outsourcing bookkeeping to the appropriate agency gives you access to accounting and business technology experts who employ standard accounting practices to benefit your business, particularly in the aspect of financial decisions. The tips highlighted above will help you make an informed decision while you’re outsourcing bookkeeping services to an agency.