The right outsourced bookkeeper will have an in-depth understanding of your business needs and processes to then build the ideal bookkeeping solution for that situation. Other important pieces to consider are whether they charge by the hour or offer fixed monthly pricing. Beyond the fundamentals, there are other characteristics that make a better working relationship with outsourced accounting solutions. The right partner should be responsive, provide accurate financial information, and have expertise in your business’s industry.

By outsourcing bookkeeping tasks, the full-time employees of a business can focus on more strategic work instead of having to handle repetitive accounting activities. With more time available, companies can spend it on more impactful work that will continue to drive success. Whether it’s understanding a new market opportunity, finding ways to trim costs without impacting production, or getting financial information ready to start fundraising, it’s clear that there are better priorities than bookkeeping.

Companies can outsource basic financial operations or can choose to outsource the bulk of the accounting tasks needed to run the business. It depends on the size of the business and the needs of this area. Some companies rely on outsourced bookkeepers to only handle daily reconciliations, while others might look externally for help with payroll, accounts payable, accounts receivable, and financial reporting.

Outsourced bookkeeping is the process of taking accounting tasks and relying on a 3rd party to accomplish them. While many people have different opinions about what bookkeeping entails, we prefer to look at it as financial operations. With a third party automating manual tasks, leaning on the best experts for any particular business niche, and finding opportunities to improve processes, it’s becoming a preferred approach to tackling this business need.

Traditionally a business would need to hire someone to handle all the accounting activities like reconciliation, bill pay, payroll, and more. Instead of leaning on a full-time employee, the bulk of the work is handled by a third party so that the internal finance team can focus on other initiatives instead of the mundane bookkeeping tasks. With repetitive tasks being handled at a more cost-effective rate, companies can shift their focus to more strategic initiatives.

Outsourced bookkeeping can be very cost advantageous over hiring an internal resource to handle bookkeeping services. Our blog details the comparison, and we see an average of $12k-$27k for bookkeeping services over the course of a year compared to an average salary of an internal bookkeeper at $46k. However, if companies opt to have CPAs do their bookkeeping, they might incur much higher charges due to the higher level of training and higher hourly rates.