Outsourced bookkeeping has started to emerge as one of the most beneficial tools for big and small businesses. Not only does it allow for the streamlining of the accounting processes but also, leads to an array of other advantages such as cost-saving and better utilization of time. While bookkeeping can be managed in-house, it is always a smarter idea to outsource the same. In order to understand why let’s first take a look at the responsibilities of a bookkeeper and the way, these responsibilities differ from those of an accountant.
Bookkeeper Vs. Accountant
Bookkeeping and accounting are both essential business functions. However, there are key differences between the two. Accounting is a complex process that involves the analysis and interpretation of data. Bookkeeping, on the other hand, is more about recording financial transactions, as one of the foundation steps of the accounting process. Also, bookkeepers are expected to be accurate, efficient, and knowledgeable about debits and credits. And outsourced bookkeeping for small businesses can prove to be extremely helpful in more ways than one.
So, what does an outsourced bookkeeper do?
An outsourced bookkeeper is a trained and qualified professional who can help financial advisors and businesses with a number of tasks. For example:
- Processing the paperwork for a company’s business transactions
Managing the proper tally and charts of accounts, accounts payable procedures, sales and accounts receivable, payroll and so on.
Adjusting entries in order to generate income statements and balance sheets from the accounting software.
- Although a bookkeeper’s work-both in-house and outsourced- is usually overseen by an accountant, it is crucial that you choose a reliable professional adept at providing SME bookkeeping and outsourced bookkeeping services.
Advantages of opting for outsourced bookkeeping services
Outsourcing your bookkeeping tasks can help save a lot of time and trouble. Here is a list of advantages that come with outsourced bookkeeping.
Outsourcing administrative tasks like bookkeeping help you to focus your time and resources on other important areas of your business. In addition to that, the time difference in countries ensures that the work gets done earlier than you expect.
Cost-saving and flexible employment attributes
In the case of hiring full-time bookkeepers, you need to take care of their earned privileges such as paid leave, fixed salary packages and so on. However, in the case of outsourced bookkeepers, you wouldn’t have to worry about these things. Also, you can outsource the work on a contractual basis that further allows you to cut down on costs. Besides, if the outsourced bookkeeper is unable to live up to your expectations, you can terminate their employment without having to give them a designated notice period. This saves you a lot of hassle and time.
Outsourced bookkeeping providers continuously have to improve their skills and qualifications in order to survive in the competitive market. This means outsourcing may offer you the possibility to hire a professional with a higher level of expertise and that too, at a more affordable price.
When to outsource your bookkeeping?
Though it is beneficial for businesses to engage with outsourced bookkeeping services, it becomes all the more imperative in the following scenarios:
- When you are certain that your business does not require a full-time bookkeeper. At the same time, you are aware that a professional with a certain skill set would be able to handle your bookkeeping tasks better.
- It is difficult to find a full-time employee to do the job at the pay package you are willing to offer.
- You need temporary services for a certain period of time and hiring a full-time bookkeeper would add to the pile of unnecessary expenses.
Once you make the decision to outsource bookkeeping for your company, you should be smart about the professionals that you choose. Valenta, with years of experience in the field and a strong network of professionals, we have tailored our bookkeeping services to suit individual client needs. Valenta’s expert Finance and Accounting specialist are well versed with all common software including XERO, SAGE, Quickbooks, XPA, SuperConcepts, Saasu, and much more.