Accounting is one of the most essential aspects of any organisation or company. This includes recording financial transactions, customers’ invoicing, clearing cheques, banking reconciliation, and preparing financial statements. In particular, it is challenging for SMEs to keep a professional in-house staff responsible for bookkeeping since it is often expensive and requires time. Consequently, bookkeeping and accounting outsourcing services are a common practice, having received an added boost. In this guide, we shall seek to explain the prospects that are worth considering when looking for the ideal outsourced bookkeeping services.
1. Understand Your Business Needs
Our needs: Before we start a hunt for an outsourced bookkeeping service, we need to identify and solidify a specific need for your business. Do you need basic accounting, which includes accounts receivable and accounts payable, or do you need complex services like payroll processing and processing taxes, or others such as financial statements and analysis, amongst others? If you understand your requirements, you will be in a position to search for the bookkeeping services that you require.
2. Consider the Cost-Effectiveness of Outsourcing
How cost-effective is outsourcing? Often, it is one of the major considerations that compel organisations to opt for accounting outsourcing. However, what is more important is that it becomes vital not only to minimise the initial cost of operations but also to evaluate the value of the services to be provided. One must take into consideration the prices offered by each of the providers and find out what is included in the services they offer. Some of these firms take one universal sum based on other firms’ structures, while others may take per hour or per service given. One has to locate a bookkeeping service provider whose charges are affordable but still ensure good service provision of all the services required without necessarily being expensive.
3. Look for Specialised Expertise
When you decide to outsource bookkeeping services, you should hire firms with experience in your industry. For instance, the records of a manufacturing industry will not be the same as those of a non-profit organisation. It is always important to have specialised knowledge of a subject in order to make the necessary corrections and abiding recommendations. Hence, the important point that should be targeted is to find an outsourcing bookkeeping service provider that has excellent experience in this sphere and has been working with clients from the same business segment as your company for several years.
4. Evaluate Technology and Software Used
Other factors that only professional companies can pride themselves on include technology, particularly the software used in executing the outsourced bookkeeping services. Some of the conventional benefits of Cloud Data include QuickBooks, Xero, and FreshBooks, which improve real-time data, automate data, and ensure data security. When selecting a service provider, you can enquire from the provider about the type of software used in the process and whether it fits your system or not. Forcing accounting solutions to outsource your bookkeeping to a tech-savvy provider can reduce the time on data entry, reduce mistakes, and give you a clear idea of the health of your business.
5. Prioritise Data Security and Confidentiality
Financial information is crucial, and it is important to ensure that this information is safe from being accessed and/or manipulated by other people or programs. Before engaging a bookkeeping and accounting outsourcing firm, ask about some of the preventive measures applied in data protection, such as encryption, requiring a passcode before access, and the safe preservation of data. Finally, one must ask whether the provider adheres to the principles of the given data protection legislation, including GDPR for companies dealing with the European Union. One issue that should be given much attention is the protection of data confidentiality and security.
6. Assess Their Communication and Responsiveness
Outsourcing entails interaction between the outsourcing company and the outsourcing partner; hence, communication is important. Select a bookkeeping service that is easily accessible and able to contact people who can address your concerns. Think about how the service provider shares information with you, whether it would be a call, an email, or an assigned personal account manager, and how often you receive information about your financial condition. Proper communication facilitates information sharing and fosters confidence between your business on the one end and the outsourced bookkeeping provider on the other.
7. Check for Scalability and Flexibility
When you are doing business, it is quite probable that your bookkeeping requirements may change with time. An efficient outsourced bookkeeping service must be easily scalable to accommodate the expanding business and flexible due to the inevitable changes in the services’ necessity further on. Determine whether the service provider is able to handle higher volumes of transactions, the provision of other services, or a need to compile additional reports as the business grows. A highly fluent bookkeeping service is important to provide for any alterations that might be needed in the future, as this will bring about a long-lasting relationship between the business and the bookkeeping service provider.
8. Verify Reputation and Client Reviews
Word of mouth is one of the most reliable ways to determine reliability and the quality of outsourced bookkeeping services. It is also necessary to conduct comprehensive research to be sure the provider is credible based on online reviews, testimonials, and case studies. It is also possible to ask the provider of the service to provide references from clients he/she is currently working with or former clients and know their satisfaction levels. You should also consider the fact that the provider has a good record of offering precise, speedy, and, more importantly, reliable bookkeeping services.
9. Understand Service Level Agreements (SLAs)
SLAs are legal documents providing the guidelines, the scope of work to be done, and the time frame for the bookkeeping services. In particular, the following points should be remembered for SLA:
- the nature and extent of work to be provided,
- the key parameters for measuring service provision,
- the estimated time for accomplishing certain tasks,
- and the legal consequences of failure to meet the agreed-upon standards.
A clear SLA eliminates the chances of mixed signals between the service provider and the client, thereby enabling agreement on service expectations.
10. Consider the Location and Availability of the Service Provider
Outsource bookkeeping service provider location plays a crucial role whenever there is a need to consult on a given issue, the frequency of the provider’s availability, or the time taken to complete tasks. If your business has different working hours from the provider, find out whether or not there is a solution for such differences. It is important to mention that while many bookkeeping services work remotely, some businesses may opt for a local provider to facilitate communication and possibly, in-person meetings. Select a provider that is in line with your business and carries out its operations within your expectations.
11. Evaluate the Quality of Customer Support
Another consideration that affects accounting outsourcing and bookkeeping services is in relation to customer support. A positive outsourcing experience is when the provider delivers strong customer support and is valuable. Evaluate the frequency and convenience of the service, whether they have round-the-clock or specific service hours, and what options they use to provide customer service. A customer support team to help solve any problems can greatly add to the overall experience.
12. Test the Service with a Trial Period
Most outsourced bookkeeping service providers provide their customers with a free trial period or consultation. It is also important that you consider self-evaluating them based on the services, software, communication aspect, and compatibility with your business. This means that, when choosing which provider will manage your books, you will have a trial period where you get to see how that provider operates, especially in the context of your needs or difficulties your business faces.
Conclusion
Important factors that one must consider before selecting outsourced bookkeeping services, like business needs, cost, expertise, technology being used, security policy, communication method, scalability, and reputation. As you try to assess the ability of potential service providers, you can then be in a position to make the right decision that will benefit your business.
Hiring a third-party vendor to handle these accounts will be efficient and affordable, and they will also offer specialised services for these tasks, freeing up your own time to attend to other issues of concern in your business. This guide will enable anyone to confidently go through the selection process and come up with the right bookkeeping service for their business.
We at Corient offer a wide range of outsourcing services in and outside the UK. These include accounting outsourcing and bookkeeping services, payroll outsourcing services, tax and VAT outsourcing, and management accounting. Let us take care of your business with all the latest technologies that best fit your company’s needs and requirements so you can concentrate on building a successful company.
Contact us today to get yourself the best bookkeeping and accounting outsourcing services near you that can help you streamline your process and save time and cost!
