How Does Outsourcing Bookkeeping and Accounting Services Work?
If you are laser focused on the bottom line needs for your business, then you might want to consider outsourcing your accounting and bookkeeping services. You may find that doing so will save your company some serious money.
According to a recent survey commissioned by Intuit® – the makers of QuickBooks® –89 percent of small business owners report that they experience greater success when they partner with an accountant. If you find that your business struggles in managing your books, then it may be time for you to outsource accounting and outsource bookkeeping so you can leverage a firm’s financial expertise. This will enable you to focus on other important matters related to running your business.
In an era of specialists in today’s business world, more companies are looking to accounting professionals to manage their books. Accountancy firms offer experienced accountants who use the latest technology tools. This delivers a cost-effective solution to your growing business.
The question then becomes how does the process of outsourcing your accounting and bookkeeping services work? What are the benefits of doing so?
How Outsourcing Your Accounting & Bookkeeping Works
A major advantage of outsourcing is enjoying an a la carte model in the selection of accounting services. For example, when you outsource accounting services, you have the flexibility of getting the functions you need without paying for the ones that you don’t.
In most cases, an outsourced service provider will begin with an assessment that allows them to identify what accounting services you need as they assist you in accomplishing your business’s unique financial goals.
Afterward, the accountancy firm will give you a proposal that outlines the services they can offer and their related costs. This could involve the implementation of new systems or business applications that will provide more helpful information and make managing your finances much easier.
On some occasions, your outsourced firm will suggest changes in your accounting practices to improve internal controls or enhance efficiencies.
Outsourcing accounting with the right firm will give you a competitive edge for your growing business.
Services Included in Outsourced Accounting
Your accountancy firm will process your transactions daily, just like an internal accounting department. Your expert accountants should be able to handle the following accounting functions:
- Sales invoicing
- Real-time transaction processing
- Payroll processing
- Vendor bill payment
- Budgeting, forecasting, KPI trending
- Management reporting
Services Included in Outsourced Bookkeeping
Managing Account Payables/Receivables
Your outsourced firm will keep track of what your business owes to vendors and your purchases, in addition to what your clients owe your company.
Bookkeepers are responsible for recording financial transactions into a ledger or an accounting software to keep them organized and up-to-date.
When you make real-time updates on the entries, you will send invoices to clients and suppliers that are always accurate. Your management team will be able to view all outgoing and incoming funds and monitor the revenue your business generates, as well as the expenses that are due.
Handle Payroll Reconciliation
This involves calculating the wages of your employees and appropriate deductions. This also assists your company in monitoring your taxes, which becomes highly important for government reporting purposes.
Benefits of Outsourcing Accounting and Bookkeeping Services
If you own a small or mid-sized business, you probably don’t have big budgets to work with. You need to be very careful with how you spend your money. That is why outsourcing accounting and bookkeeping services will be the clear and obvious solution when it comes to managing your finances. As a small business owner, hiring an accounting firm to handle your bookkeeping and accounting will come with a much lower cost than hiring for a full-time internal employee.
If you’re like many other companies – including small businesses – you have a wide variety of accounting needs that range from basic bookkeeping to financial forecasting. It would be a serious mistake to hire one person to be responsible for such a wide array of functions. Those tasks should be performed by people with the appropriate skills and level of experience to ensure quality accounting services for your business.
For example, a bookkeeper is likely not the best financial professional to prepare a cash flow forecast or a detailed financial projection. Similarly, a controller or CFO is not the best choice to oversee the processing of your daily transactions. However, an outsourced accounting firm can give your business part-time resources to manage all those roles in a cost-effective package.
Take Advantage of Freed Up Time
As your company grows, it requires more time and focus to properly manage your accounting functions. It has been estimated that businesses spend roughly 120 working days every year on bookkeeping and other administrative tasks. However, when you outsource accounting services, your company will benefit by you, as the owner, having more time dedicated to running your business, and, as a result, put more energy into tasks that will strengthen your bottom line.
Look to PorterKinney for Exceptional Quality Accounting & Bookkeeping Services
We invite you to outsource your accounting and bookkeeping services with PorterKinney. Many small business owners can save time and money by outsourcing their accounting and bookkeeping services to our firm.
Consider us at PorterKinney an extended part of your team, keeping a constant eye on your accounting, and giving you peace-of-mind to help you achieve your business goals.
If you are interested in using any of our accounting or business consulting services, we invite you to reach out to us on our website. You can also call us at our two offices in the Tri-Cities: