Outsourced bookkeeping is high on the list of outsourced services most hired by small business owners. Today’s businesses are still heavily in remote working and often with a reduced staff. The business owner and key management team members are wearing multiple hats, making them a jack of all trades and truly a master of none. Outsourcing the bookkeeping function has become commonplace with SMBs.
A bookkeeper performs all the daily, weekly, and monthly financial transactions required by a business. The bookkeeper prepares a management report package containing financial reports and other helpful information:
Some bookkeepers assist with other financial and financially related tasks such as bank reconciliations, credit card reconciliation, sales tax calculation, payroll, budgeting, and tax preparation for annual tax returns.
Often referred to as virtual bookkeeping, an outsourced bookkeeper manages your bookkeeping tasks remotely. Your virtual bookkeeper is accessible via software applications, such as Expex. The virtual bookkeeper pays your bills through electronic means, prepares your monthly financial statements, and ensures your books are tax-ready for your accountant.
Outsourced bookkeeping is traditionally less expensive than in-house bookkeeping and can offer a wide range of expertise based on your type of business.
In many small businesses, the duties and responsibilities of a bookkeeper and accountant can become convoluted. A bookkeeper does not have the training or education to provide financial analysis and insights. While bookkeepers perform accountant-based tasks, they are not considered an accountant. It is essential to understand this as you consider what services your business needs to manage your finances.
Outsourced bookkeeping and outsourced accounting services offer expertise and quality at a level that most small businesses cannot afford to hire as full-time staff. A fully burdened headcount for each full-time bookkeeper and accountant could cost more than $110,000 a year or more, depending on your geographic location. Outsourced equivalents are minimal in comparison.
Yes. Many small business owners perform bookkeeping tasks taking them away from growing the business. Hiring a bookkeeper ensures that transactional and administrative-accounting functions are correctly executed and monthly financials are completed.
An accountant understands and analyzes the data providing insight, analysis, tax planning, and strategies. At a minimum, a business owner should have an accountant to provide them with tax planning and preparation. However, as your business grows, having a CPA is strongly recommended.
Is outsourced bookkeeping the right fit for your business? Here are five compelling reasons to outsource your bookkeeping.
We want to ease the burden and stress of arguably one of the most critical business functions. Running a successful business is hard work. Bookkeeping is challenging for even the most experienced business owner. Hire Carly, and let her do the bookkeeping for you.
Expex, based in Schenectady, NY, offers automated and innovative bookkeeping services to help your business succeed. Our application, Carly, can do everything a traditional bookkeeper does and more. This financial management program expertly delivers bill payments, bank and credit card reconciliation, and financial records consolidation. Call (518) 389-2305 today to get started, or contact us to learn more about Carly.