Do you have any knowledge about outsourced bookkeeping services? Are you interested in knowing what outsourced bookkeeping is? This article will provide you with all the basic knowledge that you should know about outsource bookkeeper. And if you know about it, you can still read to refresh your knowledge.
If you are a business person, you need to have someone responsible enough who can handle your accounts and finances. It is a difficult task to find someone capable and qualified enough to handle financial matters of the company and that too at an affordable price.
At this point, outsourcing comes into play. Almost one-third of the business owners now believe outsourced bookkeeping services can help them maintain their accounts and finances. There are multiple companies out there who are ready to provide you with outsourcing Bookkeeping and accounting services at affordable prices. These facilities can be used by start-up companies or a fully well-established company or any small or big business. The size of the business is not considered.
Table of Contents
- What is outsourced bookkeeping?
- Types of Outsource Bookkeeper
What is outsourced bookkeeping?
Outsource bookkeeping is a simple term. It is a process that involves a party organization looking into the business affairs of a company instead of the accounts department of the company. Or you can say that you are hiring another company rather than using your in-house employees.
Outsource bookkeeping provides full proof accounting services comprising coding of day-to-day basic transactions, accounts payable and accounts receivable, taxes, payrolls, and financial reporting. A few of the companies also offer services like establishing the company abroad, along with taxation and legal consultation services.
Types of Outsource Bookkeeper
Although remote outsourcing is popular, most organizations prefer to work with offshore development centers since they provide much better outcomes. In case, one wants to access high-end services at a reduced cost, the offshore firm must be able to provide spectacular outcomes while staying within its budget. There are two basic types of outsourced bookkeeping services: Local bookkeeping and Virtual bookkeeping.
In local Bookkeeping, a local bookkeeper or a team of bookkeepers is hired. They are called locals because they work somewhere close to your business. Hiring local bookkeepers is advised for the following reasons.
- You prefer having a face-to-face conversation with your bookkeepers.
- You trust and prefer having physical records of all your business transactions. Many business owners do not like online banking or online payment modes.
A local bookkeeper could be a freelancer or any local accounts and bookkeeping company. They work as per your needs and maintain your books. They can also provide their services online. Bookkeeping companies or firms also work the same way. The difference is that they charge more than freelancers.
Virtual bookkeeping is the latest paper-free type of bookkeeping used to handle business account books. It makes use of bookkeeping software to store and manage the finance data. This service can be used when
- You are more comfortable with online banking.
- Prefer interacting via messages online rather than in person.
- If you want access to your finances on your mobile phone.
Outsourced bookkeeping has several advantages for both newly established businesses as well as well-established businesses. Get your business mapped out and maintain your books with the help of outsourced bookkeeping.