Farwah Jafri | May 16 2021
Bookkeeping is undoubtedly, one of the most critical business functions that help drive a business towards success. This is one of the reasons why hiring an in-house bookkeeper may prove to be a costly investment, especially for small businesses, as they are highly specialized professionals. Nowadays, most startups and small and medium sized enterprises, SMEs, prefer relying on outsourced bookkeeping services to make it work for them, financially and strategically.
See Also: What Does a Bookkeeper Do?
The idea of bookkeeping outsourcing is one that continuously wins you over the more you benefit from it. Since it involves you entrusting a virtual service provider to handle a highly essential activity of your accounting operations, it’s essential to know thedos and don’ts associated with it, so you only end up saving money and not losing it. This guide provides you a comprehensive understanding about how outsourced bookkeeping services operate.
Bookkeeping outsourcing refers to handing over all your financial transactional duties to a virtual service provider that will prepare and manage your books on your behalf. Outsourced bookkeeping services also allow you to have customized solutions for your business. You can choose to outsource only one part, several, or even the entire accounting activities of your organization and rest assured that none of your transactions will go unreported in your records.
Outsourcing bookkeeping activities will also eliminate the heavy investment and time needed in setting up an in-house bookkeeping department, hiring staff, and paying them every month. With outsourcing, the most convenient bit is to pay for the specific services that you are requesting them to perform. The outsourced bookkeeping service will have experienced, competent people well-versed in the financial industry. This will help you get a clear picture of the financial status of your business based on which you can plan strategic initiatives for your business.
Outsourced bookkeeping services are very simple to implement for your business.
This is how the process works for a majority of the services:
As you may have observed, outsourced bookkeeping services aid greatly in simplifying your finances and provide you hassle-free organizing of your financial transactions.
If you’re still on the fence, here are a couple of more reasons why you should choose outsourced bookkeeping services for your company:
The costs involved with hiring outsourced bookkeeping services depend greatly on the nature and complexity of your business and can vary from one company to another. In general, an outsourcing agency would charge anywhere from $6,000 to $24,000 per year. And if you set up a bookkeeping department in-house, you may need to spend somewhere between $52,000 to $83,200 annually. Bookkeeping outsourcing makes more financial sense and its reasonable pricing model is probably one of the major reasons why most companies prefer outsourced bookkeeping services.
At Monily, we have a team of expert bookkeepers who can efficiently manage all aspects of your bookkeeping. In addition to best-in-class bookkeeping services, we also offer tax preparation, payroll, CFO and controller services to help your small business grow. Try our services free for the first two months now and see the incredible results for yourself.
Farwah is the Product Owner of Monily. She has an MBA from Alliance Manchester Business School, UK. She is passionate about helping businesses overcome challenges that hamper their growth, which is why she is working at Monily to facilitate entrepreneurs to efficiently manage business finances and stay focused on growth.