Have you started a new business and are struggling with bookkeeping? How about hiring a professional who manages all for you?
Outsourcing bookkeeping is very common. In fact, by 2022, more than 65% of accounting will move to external outsourcing. It is a cost-effective and more professional approach to managing any financial statements.
Brian C Jensen explains the various options of outsourcing bookkeeping
Hire a local bookkeeper: A local clerk who has complete knowledge of different bookkeeping aspects would be the hands-on solution to outsource. It is an excellent option if you struggle to manage the account due to business travels or other business errands.
There are two ways of getting professional help from a local bookkeeper: freelance bookkeeper and agency. A freelance clerk is one person contact system. You hire a qualified clerk and share the business details online.
The other option is that the freelance bookkeeper visits your company a couple of times in a month and then starts working. The second option is for small- and large-scale businesses. The bookkeeping agencies or firms are a little pricey than the solo freelancer.
There are also significant differences between the two. A solo bookkeeper comes with signing authority. They have the power to certify certain documents. However, the agencies will require signing authority which may or may not be the same person every time.
The only disadvantage of hiring a freelancer is the security breach. Ensure that you do not give access to treasury information to the bookkeeper. Carry a background check before hiring anyone. Keep the business signing authority to yourself and avoid giving a power of attorney.
Virtual bookkeeping: The term suggests the actual functionalities of bookkeeping. When you combine the latest accounting technology (use of software and tools) with an outsider bookkeeper to handle the job, it is virtual bookkeeping. You get the complete overview and review of financial accounting online.
Brian C Jensen advises that this is perfect for those businesses when the banking transactions are online. And when you do not want to maintain dynamic pricing for the outsourcing of bookkeeping. You can have flat costing to keep the accounting expenses in the budget. It also gives you quick and easy access to all the financial activities over the phone or computer.
You can connect with professional and qualified bookkeepers online through a secure line. With the merchant processor, you can share all the relevant data and keep confidentiality. During the taxation time, online bookkeeping helps in consolidating the year-round financial statements. It sorts the small business tax return.
In-house bookkeeping: For large businesses, it is advisable to have in-house bookkeeping. Hire a good team who can manage the finances and keep the accounts tidy. You can opt for a salaried employee who dedicatedly manages all the accounts.
Explore the different options available and make the intelligent choice for your business. Whatever may be the outsourcing solution, all the bookkeepers adhere to GAAP and other strict regulations.