outsource bookkeeping for small business

Any business can face an audit or another difficult financial situation. When you are trying to handle accounting on your own, you will be forced to handle these situations on your own as well. However, outsourced accounting connects you with an ally and advocate who will be by your side during these challenging times. If you have a smaller business, you may still benefit from outsourcing your company’s accounting needs, depending on your financial resources and abilities to handle accounting on your own. In some cases, you may have knowledge of accounting and/or you may have employees who understand accounting principles, but you simply don’t have the time to handle these needs on your own.

  • Before selecting a firm, ensure their personnel have the experience you need to make sure you’re in capable hands.
  • Before the numbers can be perfect , bookkeepers need an adjustment period.
  • QuickBooks is a well-known accounting software used by millions of companies.
  • This is an added burden to any company owner who is also responsible for many other key areas of the business.
  • Her experience helps business owners quickly accomplish their financial goals.
  • Hiring a bookkeeper is expensive, whether they’re on-call or part-time.

But by looking at outsourcing more closely, you’ll understand why you need to outsource your bookkeeping and why it’s a good investment. If you’re considering outsourcing other elements of your business, such as human resources, consider seeking a firm that offers both services. It will be easier for both services to sync up and you’ll have a cohesive team to turn to when the need arises. If you’re just starting out, it might be tempting to choose a firm that only offers bookkeeping. However, consider how your needs will evolve as your business expands. It can be helpful to choose a firm that offers a wide variety of services so you can stick with the same team as your business grows. When deciding which types of accounting services to procure for your small business, first consider your needs.


QuickBooks is a well-known accounting software used by millions of companies. It’s a really adaptable program because there are so many different products to choose from.

outsource bookkeeping for small business

In all cases, it’s important to crunch the numbers to see what rate or form of billing makes sense for your business. If you already are using an accounting or bookkeeping software program, it would be ideal to work with a firm that utilizes the same software. If you don’t already use a software program, the accounting firm will recommend a package. Started by successful startup entrepreneurs, Pilot understands the challenges other startup entrepreneurs face in keeping the books and preparing their businesses for growth. That’s why we chose Pilot as the best accounting firm for startup businesses.

Why Do Small Businesses Use Outsourced Accounting Services?

One of these needs is the presence of a third-party independent financial assessment. If you want to use outside investment cash to help your business develop, you can get ahead of the game by outsourcing your accountancy to a company that you and your creditors can believe. Payroll services also are available from 1-800Accountant for getting your employees paid, withholding taxes, and taking care of your payroll taxes.

Having all of your bookkeeping together throughout the year will make tax season much easier. Up-to-date reports will be provided monthly throughout the bookkeeping process, giving you a good idea of how much you’ll owe when tax season hits.


In today’s hi-tech environment, businesses are generally very good at deciding which services to specialize in and which to outsource. However, finance and accounting support needs are often underestimated by small businesses and start ups. With the exception of payroll which usually does get outsourced to one of the large firms that specialize, all other functions are either not fully performed or kept in-house at the mercy of unqualified staff. When you hire your own staff members to handle accounting, you will typically be required to offer benefits as well as salary. Thus, in most cases, it will cost less to outsource accounting services to a third party than it would to hire your own dedicated accounting staff. Lack of qualified personnel.One of the most common reasons businesses may choose to outsource their accounting services relates to a lack of qualified personnel.

If basic bookkeeping is all that your company needs at this stage, you’ll need to decide whether to do the bookkeeping in-house or if you should outsource. If you decide to hire and manage a bookkeeper you’ll also have to decide whether the position is part-time or requires full time. If you decide to outsource, there are a few ways to go including local bookkeeping services, local CPA firms that offer bookkeeping services and specialized, national outsourced bookkeeping firms.

Get the Team You Need

We provide experienced, affordable, and dependable bookkeeping, marketing, human resources, and payroll services for businesses. Bookkeeping is not a straightforward practice, which is why many business owners outsource it to virtual bookkeeping firms.

outsource bookkeeping for small business

Just imagine doing your own bookkeeping with an app that prioritizes security by taking measures like encrypting your stored files, monitoring its software 24/7, and performing external audits. You’ll literally eliminate the risks posed by cybercriminals and sleep like a baby, knowing that your financial data is very safe. These prices can get too high for small business owners who are focused on growing their startups. The best business growth decisions are backed by your instincts and gut—but having the numbers on your side helps too. With financial intelligence about your business, you can make better, more informed decisions.

Accounting Resources

In any business, accounting is not only about making ledgers or keeping accurate bookkeeping. For example, if a small business is only adding invoices and not adding expenses until the whole accounting bookkeeping for small business process completes, the company will never be able to judge whether a business is in profit or loss. Bookkeeping providers understand nuances such as small business taxes and lean / peak tax seasons.

  • You won’t have to worry about their insurance, benefits, or training.
  • Even with the most trusted accounting firms, it is also a good idea to look over your financial statements and other records at regular intervals to make sure everything is on track.
  • When you are trying to handle accounting on your own, you will be forced to handle these situations on your own as well.
  • Our professionals can give you the insights you need to keep your back office running smoothly.
  • You can still get access to expert bookkeepers that your company needs despite cost savings.

Intuit Inc. does not have any responsibility for updating or revising any information presented herein. Accordingly, the information provided should not be relied upon as a substitute for independent research.

In addition to these basic bookkeeping activities, your costs will be impacted by how your accounting systems, policies and procedures, and reporting needs are set up and administered. You can bring down the costs even further by working with a service provider that uses cloud-based accounting software in synching bookkeeping data.

outsource bookkeeping for small business

Let’s take a deeper dive into outsourced accounting services and how they can help your business. Virtual, outsourced, and online are often used interchangeably when referring to bookkeeping and accounting. However, a virtual bookkeeper or virtual accountantcan sometimes refer to accountants or CPAs who work out of their homes and contract out their services individually.