4 Tips to Effectively Outsource Bookkeeping and Accounting Services for Your Small Business
Small businesses rarely have the resources to hire full-time bookkeepers and accountants. Therefore, outsourcing these services becomes a more viable solution. Outsourcing allows you to access expert services without paying salaries and other employee benefits. It is also time effective and allows small business owners to focus on core management roles.
Before you outsource bookkeeping and accounting services, here are four tips on how to go about it.
1. Match your needs to the budget
Bookkeepers and accountants offer a variety of services such as managing financial statements, payroll, reporting and tax services. Some firms offer IT support as well. As you look for the best firm to work with, assess your budget. How much can you comfortably pay for outsourced roles? Are there any services you can do without?
Budget constraints are typical in small business. Don't bite off more than you can chew. For starters, you can outsource essential duties such as bookkeeping, reporting and tax services. If you have a few employees, you can always handle the payroll. Set your priorities while considering your budget.
2. Have clear expectations
What do you expect from your bookkeeper or accountant? What are your goals? Having clear expectations allows you to get better services. It also creates a cohesive relationship between you and your bookkeeper. For example, if you need to assess business financials, let your service provider know so they can create a seamless reporting system.
Similarly, if you need to track expenses better, they can focus on this and allow you to see areas where your business is struggling financially. Your accountant shouldn't just prepare your books. They can also help improve the profitability of your business by generating insightful reports.
3. Look into security and compliance
Data breaches can compromise the security and reputation of your business. Since accounting data is sensitive, it's crucial to work with a firm that values security and compliance. As you hire them, ask about the measures they have in place to ensure data security. They should also comply with regulations and industry standards regarding data protection.
4. Establish an effective communication system
Outsourced bookkeeping differs from working with a full-time employee. You cannot summon your accountant at random times to enquire about financials. Thus, establish a clear and effective communication system.
How often should the accountant report to you? Is there any data they can't access for security purposes? Will you communicate via email, phone call or virtual meetings? Iron out these issues from the start to allow for proper planning.
Have these things in mind when outsourcing bookkeeping and accounting services for your small business.