But this is often a huge expense for smaller businesses and difficult to scale as businesses grow. This is why many companies look into DIY accounting systems such as QuickBooks or Xero. Finally, if you are spending your time fussing over your bookkeeping, your business and your team are missing out on your full attention.

Does tax season send you into a series of anxiety-driven panic attacks? Outsourcing your bookkeeping can better help you prepare for tax season and audits. Too often, we see small business owners and entrepreneurs scrambling to find what they need for their CPA. It becomes a tireless back and forth with their accountant, and they likely miss out on valuable tax deductions due to a lack of records. Outsourced bookkeeping can ensure that everything is carefully tracked and documented so that tax season floats by and you don’t even break a sweat.

What is Outsource Bookkeeping?

Here’s everything you need to know about outsourced bookkeeping to help you get started and streamline your day-to-day operations. Bench offers some valuable premium services, such as income tax filing, and add-ons, and it falls on the lower end of the pricing spectrum for online bookkeeping services. Bench uses its own accounting product, however, and doesn’t integrate with popular accounting software, which could make for a trickier software transition down the line if you outgrow Bench. Bookkeeper360 stands out among some of its competitors by offering bookkeeping services for both cash basis and accrual basis accounting, plus it integrates with popular accounting software. The company offers a range of plans based on which accounting method you use and how often you wish to receive reports and updates.

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. For instance, it is not cost-effective if you need to book more than one or two hours a month.

How much does outsourced accounting cost?

There are many reasons to outsource your bookkeeping, which can be a good option for many companies. Outsourcing your books will free up time to focus on other business aspects. Hiring an experienced company familiar with various bookkeeping services can save you money. First, you’ll contract with the company and pay them a fixed monthly fee for their services.

In an effort to avoid that pitfall, many companies fall into another one. They spend hours doing tutorials, chatting with support representatives, or double-checking their numbers. And every hour spent outsource bookkeeping learning or managing accounting software is an hour not spent on generating revenue directly. If your business is growing steadily or you’re already spread thin, that may be time that you don’t have.

Bookkeeper360: Best for hourly bookkeeping

Empowered by the knowledge in this guide, you can now confidently navigate the world of outsourced accounting and choose the best solution for your company’s growth. Here at Personiv, we understand the ins and outs of outsourcing and what it takes to succeed in today’s growing accounting landscape. With more than 35 years of experience across multiple time zones, we can help you find, hire, and retain top talent, all the while saving you money and time (a win-win solution). Of all the outsourced accounting services, an outsourced CFO service is by far the most customizable. Whereas outsourced bookkeeping and outsourced controller work largely follow a predefined framework, an outsourced CFO relationship can be anything you want it to be. Outsourced CFO services are much more advisory in nature than outsourced bookkeeping or controller services.

• An outsourced CFO that’s experienced in the nonprofit sector might not grasp the financial challenges that a fast-growing technology company deals with.
• Freelance bookkeepers collaborate one-on-one when it comes to bookkeeping and accounting needs.
• If your company has never utilized outsourcing as a resource before, you may have some questions that give you pause.
• As a result, it’s helpful to understand what you might want to outsource, and what you might want to keep in-house.
• Plus, it costs half of what you could end up paying for an hourly bookkeeper.