How to Outsource Your Bookkeeping: A Complete Guide

Delegating bookkeeping to a third-party provider means that you can concentrate on serving your customers and growing your business. Some small businesses hesitate to outsource their bookkeeping because they don’t know where to start. Other small businesses put off outsourcing because they think it’s expensive. Top angel investors and VCs refer Kruze because they trust us to give the right advice. Our clients are portfolio companies of top technology and Silicon Valley investors, including Y-Combinator, Kleiner, Sequoia, Khsola, Launch, Techstars and more. With us, your books and taxes are in order when it’s time to raise another round of venture financing.

• Time and time again, we see not very good bookkeepers not labeling the vendor names in their clients’ accounting software.
• Kruze’s bookkeepers will work with you to find the financial delivery date that works for your needs.
• For all they care, they can do their books by themselves to reduce costs.
• Learn how to effectively manage financial records, maintain accurate ledgers, and understand key bookkeeping principles.
• And when you offer after-sale services, you’re not just offering bookkeeping pricing packages, but you’re also offering a complete solution for your customers’ needs.
• However, they usually offer some “assurances” that solo bookkeepers can’t.

And when you use us as your bookkeeper, we set up and keep up-to-date a due diligence folder so you can get that next round of fundraising. Companies that are planning on raising venture capital need good bookkeeping services – VCs, strategic acquirers and IPO underwriters want financials that are done right – the 1st time. This became very important in the early days of COVID because a lot of companies were trying to cut burn. If companies didn’t have their vendors labeled in their accounting software, then they couldn’t see how they were spending their money. So make sure your vendors are labeled and it will make your financials actually actionable. An outsourced bookkeeper can help monitor your invoices, payments, billing and other transactions to make sure you’re collecting funds that are due to you, as well as paying your vendors and contractors on time.

A Full-Service Team

An in-house bookkeeper is usually considered a full-time employee, which means they would get a salary and benefits package. According to Salary.com, the cost to hire a full-time entry-level bookkeeper is $45,446. That is just the base salary and doesn’t include benefits or bonuses.

Another important consideration is whether or not the bookkeeper will be able to meet your needs in terms of availability and turnaround time. If you need daily or weekly updates, make sure they’re able to provide that level of service. For example, is using cloud bookkeeping software something that’s important to you? Trying https://www.bookstime.com/ to reconcile books between different software platforms can be a nightmare. Make sure your potential bookkeeper is using the same software as you or is willing to switch over to your system. By taking the time to prepare and choose the right bookkeeper, you can ensure that your experience is positive and productive.

Reduce Your Chances of Getting Unfit Clients

It helps track income and expenses, identify trends, and make informed decisions about allocating resources. When you have the right bookkeeping services in your corner, you’ll enjoy greater freedom and peace of mind in your business endeavors. Starting at $299 our expert bookkeepers will help equip you with the essential skills of bookkeeping through our comprehensive training program. Learn how to effectively manage financial records, maintain accurate ledgers, and understand key bookkeeping principles. Our expert instructors will guide you every step of the way, ensuring you gain the knowledge and confidence to handle bookkeeping tasks with ease. Some accounting software products automate bookkeeping tasks, like transaction categorization, but it’s still important to understand what’s happening behind the scenes.

Any business owner will tell you that financial management is a vital part of running a successful operation. From tracking income and expenses to preparing for tax season, keeping accurate financial records is essential. Single-entry accounting records all of your transactions once, either as an expense or as income. This method is straightforward and suitable for smaller businesses that don’t have significant inventory or equipment involved in their finances.

Choose either cash or accrual accounting method.

But you can also offer an advanced package with additional tax preparation and payroll services. Most business owners can expect to spend anywhere from $200 a month to $2,000 a month. Hiring a local or online bookkeeper is a more cost-effective solution, and you’ll get year-round support with your finances. This means access to invaluable financial data that can help you stay on top of your cash flow and guide your decision-making.

Accounting software makes it easy to store these documents and reference them in case of an accounting error or audit. At the same time, businesses need to make sure they pay their own bills on time to avoid late fees how to meet your bookkeeping needs and maintain a solid reputation. These expenses that haven’t been paid yet are categorized as accounts payable. Late-paying customers is never a good thing and it can have a negative impact on your cash flow.

User-Generated Content

This covers both the person who opened the mail, and the bookkeeper or accountant. In the end, one solution — without spreadsheets and accordion files — means that you can spend less time managing your books. You’re not in business to do bookkeeping, but you’re not in business without bookkeeping. It can be confusing to others who may need to work with those documents — and for you to lose track of what is where. When you need that information come tax time or for a loan application, you may need to reference those scattered documents. That can take forever to find, and there’s a real risk of losing data or even using the wrong data.

AccountingDepartment.com offers client accounting services for businesses with between $2 million and $100+ million in annual revenue. Our services include accounting management, outsourced accounting services, and accounting technology consulting and implementation. We would love the opportunity to talk with you about what accounting services may be right for your business. Schedule a free consultation that will help determine the best accounting service solution to meet your specific needs as a company.