Bookkeeping as a service is the new way to develop and maintain your business’ financial processes and management, at a fraction of the cost. Gone are the days when businesses had to hire an in-house accountant or bookkeeper and incur ongoing expenses like training and upkeep.
Today, outsourcing all aspects of your bookkeeping services to an independent professional is the new norm. It’s more cost-efficient, reliable, and scalable, meaning you get more time and resources to focus on growing your business.
But how do independent bookkeeping services actually work? This article will explain it all to you!
What Do Independent Bookkeepers Do?
An independent bookkeeper is not part of any accounting firm; instead, they’re self-standing professionals who offer their services to small businesses and startups. As such, they have no affiliation with any other businesses, so they can keep their clients’ information confidential.
The main job of an independent bookkeeper is to prepare financial statements and reports for your business. These include balance sheets, income statements, cash flow statements, and other documents that detail your business’ financial performance over time. An independent bookkeeper can also prepare your statements and documents so you’re ready when it’s time to lodge your taxes.
An independent bookkeeper must have specific qualifications before taking on this responsibility. For example, the bookkeeper must possess good communication skills, strong math skills, and excellent organisational abilities. They must also have experience working with small businesses and understanding the nuances of running one.
Benefits of Outsourcing to an Independent Bookkeeper
There are many benefits to hiring independent bookkeepers. Here are just a few:
- Save Money – Outsourcing your accounting functions means that you won’t have to spend thousands of dollars each year on payroll costs. Instead, you can focus your efforts on growing your business instead of worrying about paying employees.
- Get Better Quality Service – When you hire an independent bookkeeper, you’ll be working directly with someone who has been trained in accounting and finance. Thus, you’ll receive better quality service than if you were to hire a traditional employee.
- Gain Peace of Mind – An experienced bookkeeper knows what is required to produce accurate financial reports. They understand accounting procedures’ rules and regulations and will help keep your business compliant.
- Increase Efficiency – By outsourcing your accounting functions, you’ll be able to save time and money and use the savings to grow your business.
- Reduce Stress – You don’t have to worry about whether your books are being prepared correctly. A good bookkeeper can handle this vital aspect of your finances.
- Improve Your Business’s Image – One of the ways people often measure business success is by how well their financial statements look. An independent bookkeeper will ensure that your books are prepared accurately and professionally.
- Benefit from Expert Advice. Because an independent bookkeeper isn’t bound by any type of contract, they can provide valuable insight into areas of your business that you may not know anything about.
How Do Bookkeeping Services Work?
Bookkeepers work for a variety of clients. Some businesses hire them to handle their entire accounting needs, while others only use them for specific projects. Either way, there are four basic ways that bookkeeping services work:
1) Full Service – If you want to outsource your entire accounting function, consider using a full-service bookkeeper. Their job includes preparing financial reports for you, including profit and loss statements, balance sheets, cash flow statements, etc. They may also offer payroll processing, tax preparation, and business reporting services.
2) Partial Service – If you only need help with some of the more complicated aspects of your accounting, such as preparing quarterly tax returns or creating monthly budget projections, you should consider hiring a partial service provider.
3) Contract – If you just need occasional assistance with your accounting, you should consider contracting with an independent contractor. These individuals usually charge hourly rates based on the number of hours worked.
4) Project-Based – If you just need a bookkeeper to complete a few specific projects, such as preparing monthly sales reports, you should consider using a project-based bookkeeper. This type of bookkeeper works on a per-project basis. For example, they might prepare a report for you once every two months.
How Do Independent Bookkeeping Services Charge Clients?
As we hinted earlier, independent bookkeepers are usually more affordable than hiring someone in-house. Most bookkeepers charge clients either a flat fee or an hourly rate. Here are some examples of these fees:
- Flat Fee – Flat fee pricing means that the cost of the service is determined at the beginning of the relationship. It does not change during the engagement.
- Hourly Rate – Hourly rate pricing means that the client pays for each hour worked.
Here are some other factors that affect the price of bookkeeping services:
- The size of the business – The larger the organization, the higher the costs associated with running it.
- The complexity of the accounting task – More complex tasks require more extended periods to complete.
- The number of people involved in the process – A large team requires more time and resources to manage.
- The level of expertise required – Tasks requiring more advanced skills or expertise will typically cost more.
Using Professional Bookkeeping Services
If you’re in the market for professional bookkeeping services, here are a few things you can expect from a reliable bookkeeper like Visory:
- Regular Reporting – We can provide regular updates regarding your finances, so you always know what’s going on.
- Account Reconciliation – When we receive your books, we’ll handle reconciling them against your bank statement, credit card statements, and any other source documents you send us.
- Tax Preparation – We can assist with filing your taxes on time and accurately.
- Budgeting & Forecasting – We can create budgets and forecasts, so you have a clear picture of where your business is headed.
- Payroll Processing – We can handle all of your employee payments, including direct deposit and withholding.
- Accounts Payable and Receivable – We assist in keeping track of outstanding invoices and accounts payable.
We’re happy to answer any questions you may have about how professional bookkeeping services work. Click here to get started with Visory!