“While they seem similar at first glance, bookkeeping and accounting are two very different mediums.” writes Laura Hennigan in her Forbes article titled, “What Is Bookkeeping? Everything You Need To Know”.
Bookkeeping refers to the process of recording a company’s financial transactions on a regular basis. It is an essential process for many business functions including analyzing the company’s financial performance to stay on top of your inventory.
Amid the increasing inflation, rising operating costs, small businesses are opting to outsource their bookkeeping processes.
Outsourcing means when you hire a third party service provider to manage your business processes. In the case of outsourced bookkeeping, you hire an external bookkeeping service provider who would be managing your bookkeeping functions and providing you with detailed reports of your books.
By outsourcing your bookkeeping, you can also free up your existing, valuable employees and assign them more technical and value adding tasks. Outsourcing your bookkeeping also ensures accuracy, transparency and accessibility. Moreover, hiring and training in-house employees can be time consuming and costly. Outsourced bookkeeping can be a flexible and cost-effective alternative for businesses that require bookkeeping assistance so that they can focus on customer satisfaction.
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Why Companies Are Choosing To Outsource Their Bookkeeping Services
By outsourcing their bookkeeping services, business owners can free up their existing resources and reinvest them into their company’s core areas to drive business growth. This way, their small team can help them analyze and identify areas for development and explore new opportunities for business growth.
The most attractive advantage that outsourced bookkeeping offers is cost efficiency. Hiring and training a full-time in-house bookkeeper can cost your business significantly more than hiring an outsourcing bookkeeping firm to manage your bookkeeping. For example, Expertise Accelerated’s highly skilled offshore bookkeepers, trained by a US-based team, can provide you with exceptional bookkeeping services at just a fraction of the US.
Moreover, with outsourced bookkeeping, you gain more accessibility to your financial records, more flexibility in the compensation contract. For example, you can hire an outsourcing bookkeeping firm for a specific amount of time and end the contract once your requirements have been made. This can be handy if your employees go on a long vacation or quit abruptly.
Read more benefits of outsourced bookkeeping here.
Outsourced bookkeeping also means that your data is more secure and highly accessible. Since outsourced bookkeeping firms use a cloud-based platform, you can access your financial records 24/7, which may be just a few clicks away.
In addition to this, business owners usually opt to outsource their bookkeeping when:
- It gets hard for them to verify if their financial data is accurate.
- Keeping track of their business finances takes too much of their precious time
- It becomes a hurdle to retain employees.
- They have difficulty keeping track of accounts payables and receivables.
- Tax compliance becomes a time-consuming process.
Following are the ten best bookkeeping outsourcing services that can help you focus on core areas of your business and gain competitive foothold in the industry.
1- Bench
Bench is an accounting outsourcing firm based in Canada. It is a cost-effective alternative for small businesses that need help with bookkeeping. Bench offers month-end financial reporting, tax advisory, and monthly bookkeeping.
Moreover, with its industry tailored accounting software, Bench can seamlessly manage your bookkeeping while you focus on core areas of your business. Before hiring Bench, make sure that your accounting software is compatible with theirs.
- Founded in 2013.
- Remote-first company with a global presence.
- 600+ employees.
- Experts in monthly bookkeeping, tax filing and catch up bookkeeping.
2- TOA Global
TOA global is one of the best accounting talent solutions providers in the industry. Known for their top talent pool of more than 3400 Philippines professionals and having hundreds of clients worldwide. TOA global’s standards ensure that you get access to industry professionals who are highly qualified in their skillset and deliver high-quality accounting services.
- 10+ years of service to the industry.
- 1,180+ international clients.
- 3,700+ accountants.
3- Paro
Paro connects business owners with US based accounting professionals who can help them manage their bookkeeping and accounting. Paro hires highly qualified accountants who are the most experienced in their respective industries. This ensures that you have the most qualified individuals at your disposal.
In addition to this, their AI software has been developed to match your company with the right talent to accelerate their recruiting processes.
- Custom Accounting Solutions.
- 250+ employees.
- Services include Accounting & Bookkeeping, Fractional CFO Services, Financial Planning & Analysis & Tax & Compliance Services.
4- Expertise Accelerated
Among other accounting services, EA also gives you the cost-effective alternative to outsource your bookkeeping to skilled professionals, trained by a US-based team. Our services are highly tailored to your business needs, providing you with best bookkeeping practices that can enhance your business processes.
- EA’s CEO has 25+ years of FMCG/CPG experience.
- Trade Promotions Management.
- Accounting, Finance, Audit & Supply Chain Services.
5- Bookkeeper360
Bookkeeper 360 is an attractive option for small businesses looking to outsource their bookkeeping because they cannot hire an in-house accountant due to their limited resources. It offers a range of accounting services including bookkeeping, payroll, and accurate financial reporting. Their software is compatible with most bookkeeping programs and offers a seamless alternative for you to hand over the repetitive work of recording entries to the experts while you focus on core areas of your business.
- Founded in 2012.
- 1000+ small business clients.
- Recognized as a top online bookkeeping solution by publications such as Nerd Wallet, Forbes, and Entrepreneur Magazine.
6- QuickBooks Live
7- Maxim Liberty
Maxim Liberty has been offering flexible and cost friendly outsourced bookkeeping services to CA firms since 2005. It ranks highly in the industry for its low-cost, high-quality bookkeeping services.
- Founded in 2005.
- Clients in all 50 states and territories of the USA and Canada.
- 1000+ clients.
8- Bookkeeper.com
With over 25 years of bookkeeping experience, Bookkeeper.com offers an all-in-one small business solution. With them, you can gain access to a pool of global talent who can assist you in a range of accounting functions. This is a remote-friendly option for firms looking to set up remote bookkeeping processes for their small business.
- Services include bookkeeping, payroll, bill pay, and tax planning and preparation.
- 37+ years of experience.
9- inDinero
Best for established startups, offering scalable solutions and a variety of payment plans. Its services include dedicated account managers and direct employee reimbursements, among others.
- Services include tax accounting, bookkeeping, and CFO services.
- 13+ years of experience.
- 125+ Accounting professionals on staff.
- 30 Days or less for new clients to be onboarded.
10- Merritt Bookkeeping
Merritt Bookkeeping is a cost-effective option for businesses with limited resources. They offer flat-rate pricing that might not deplete your existing financial resources. It offers only basic bookkeeping such as recording financial transactions and account reconciliation. If you are looking for an outsourcing firm that provides only bookkeeping services, then this may be a viable choice.
- 90 day money back guarantee.
- Track record of client reviews.
- Fundamental business insights.
Conclusion
Hiring the best bookkeeping outsourcing services depends on your business needs and budget. You can also consult a financial expert to help you make an informed decision before hiring a bookkeeping service provider. The important thing is to weigh the advantages that outsourcing bookkeeping can bring to your business i.e., whether it is a cost-effective option for your business and if you are getting access to high quality bookkeeping experts.
