Outsourced Bookkeeping 101: A Guide for Small-to-Medium-Sized CPA Firms

An outsourced bookkeeper tracks your day-to-day business operations and takes care of essential financial statements and reports. This includes documents like balance sheets, cash flow statements, income statements, and monthly expenses. The services are the same whether you hire a local in-house bookkeeper or a freelance bookkeeper. Virtual and outsourced bookkeeping and accounting services are a happy medium between do-it-yourself software and pricey in-house bookkeeping.

• This will include all the financial statements the accountant needs to file the small business tax return.
• You may think that outsourcing is only a practice for large, well-established businesses that offshore basic operations.
• Leverage the power of an outsourced accounting team to build more efficient workflows and accelerate turnaround times for clients.
• If you were hoping for a one-stop shop that can tackle all of your financial needs, Merritt might not be the right choice for you.
• The virtual bookkeeping providers above might be our favorite—but if they don’t quite fit your needs, we understand completely.
• These firms possess a deep well of knowledge about industry-specific nuances, allowing them to align their services seamlessly with your unique sector’s demands.

Accounting Services

This option is for firms seeking a one-stop solution to outsource a broad spectrum of their accounting functions. Professional bookkeeping provides more in-depth financial reports than typical in-office bookkeeping. Because online bookkeeping uses virtual platforms, business owners can see their records anytime, including the cash flow and balance sheet. Of all the outsourced accounting services, an outsourced CFO service is by far the most customizable.

Lets You Focus On Core Business Growth

This immediacy allows for timely decision-making and a more agile response to market changes. Practical solutions to the issues you face, along with emerging industry topics forward-looking practitioners are curious about. Join us at our webinars, live events, or leading industry conferences for knowledge-sharing that grows firms and individuals alike. “Virtual bookkeeping” bookkeeping companies may sound a bit dated—like a Windows 95 application—but this (admittedly awkward) term refers to a popular, paper-free method of handling your books. As an addition, you get access to lower credit card transaction fees, pre-authorized debit transaction fees, and many other benefits. FreshBooks comes with 2 basic plans to meet the needs of different business types and sizes.

Our Services

CloudStaff [affiliate link] provides a diverse talent pool of highly skilled accounting professionals. Botkeeper manages the financial records with the help of a financial software such as Xero or QuickBooks Online. Their bookkeeping team is located in the Philippines though I’d say the model more resembles outsourcing rather than offshoring. Instead of hiring a bookkeeper in Canada or the US, you might instead offshore the entire accounting department to the Philippines. Our comprehensive training program includes extensive training in both technical and soft skills, as well as an introduction to the firm’s systems, operations, and relationship-building strategies. In New York, upon satisfying the licensure eligibility requirements, a license is awarded.

From cost savings to increased efficiency, outsourcing bookkeeping can provide a wide range of benefits that can help CPAs navigate the challenges of the current business climate. Boutique firms offer specialized bookkeeping services with a focus on personalized service. They cater to niche industries or specific accounting needs, providing expertise that large-scale providers might not. Essentially, you’ll give a third-party bookkeeper access to important financial information like bank statements, payroll, tax documents, and your accounting software. They’ll take it from there, generating financial reports, ensuring your ledgers are up to date, and tracking money that goes both in and out of the company, among other essential tasks.

• Furthermore, nearshore services often come with competitive pricing, offering an added advantage in terms of affordability.
• This creates opportunities for you to provide expanded advisory services in areas like cash flow optimization, strategic planning, and profitability analysis, unlocking new revenue streams for your practice.
• If you need in-house support but can’t afford to hire a bookkeeper full-time, consider hiring one part-time, and increasing their hours as needed.
• For example, a bookkeeping firm may hire professional bookkeepers with certifications.
• Having an outsourced bookkeeping service provider is known to reduce many common errors made by business owners.
• By outsourcing your bookkeeping, you can easily scale your services to meet your changing needs.
• This translates into clean, reliable financials that simplify your tax preparation, audit support, and overall advisory role.

This approach addresses the pressing challenge where the demand for skilled accounting professionals significantly outstrips supply. So if you’re in need of a bookkeeper that’s dedicated to helping you and your business succeed, schedule a free bookkeeping consultation and learn if QuickBooks Live Bookkeeping is right for your business. Today, many outsourced accounting providers are purpose-built for the needs of private businesses, from closely-held family businesses to well-established mid-market firms. The accounting needs of these types of businesses are different from those of larger firms, and the services available to clients reflect that. If you need help with CFO-level strategic initiatives but have the resources to handle bookkeeping in-house, a good provider will have no hesitation in working with you. All great outsourced accounting providers offer a suite of services that are customizable to the needs of your business.

• Essentially, everything you need to hire the right bookkeeper for your business.
• Enhanced client reporting, digital platforms and similar tools enable family offices to provide clients with an enhanced experience that aligns with digital communication preferences.
• When it comes to outsourced bookkeeping for CPAs, you might want to add them to the evaluation.
• It involves finding a partner that can offer flexibility, uphold quality and compliance standards, and support your firm’s success over the long term.
• A strong partnership benefits everyone involved, builds trust, and achieves exceptional client outcomes.

Gives You Access to Financial Expertise

Outsourcing your bookkeeping to an accounting firm ensures that your business’s financial data is organized according to best practices. Outsourced accounting firms tend to use cloud-based bookkeeping technologies that provide business owners with a real-time overview of their business’s financial position. Recruiting, onboarding, and managing an internal finance and accounting team takes up a significant amount of time.

Policies & Reports

In this comprehensive guide, we’re exploring every element of outsourced accounting. We’ll share the types of tasks that can be outsourced and highlight the key issues business owners need to consider when assessing outsourcing accounting providers. Once the system is up and running, it’s essential to allow the new bookkeeper to do their job. Don’t worry about financial reporting, payroll taxes, accounting tasks, or offline vs. online bookkeeping. You have made your choice, and now it’s time to enjoy having a dedicated account manager and bookkeeper do the job for you.

Types of outsourced bookkeeping services

What I like is that they are up to speed with a lot of the modern accounting software options out there, so if you’re a cloud accounting firm, this might be a good option. As their website states, they have almost 1,600 people on their dedicated team, deal with over 500 accounting firms, and have 9 different offices. Survey respondents cited a strong middle and back office as the key to building wealth for generations to come. Most respondents reported familiarity with outsourcing, with 73% outsourcing their legal function, 60% outsourcing technology and IT infrastructure, and 47% outsourcing accounting. Family offices may choose to outsource to bring in expertise not otherwise found at their office, to achieve greater efficiency, or to access technology that would be burdensome if maintained in-house. © 2024 Website design for accountants designed by Build Your Firm, providers of accounting marketing services.

There are many signs that you need to hire a bookkeeper, and only you will know for sure when it’s time to outsource your bookkeeping. Beyond day-to-day operations, having your bookkeeping taken care of by a professional expedites the tax filing process. You’ll have all the numbers you need to fill out the forms quickly with IRS-compliant reports for your tax return. Some firms opt for a hybrid approach, combining elements of onshore, nearshore, and offshore outsourcing.