"Why We Advocate for Our Back Office Solutions"
How Does Outsourced Bookkeeping Work?
Benefits of outsourcing bookkeeping services are plentiful.
But what is the actual process behind it?
1. Provide view-only privileges to your financial data.
Initially, you must authorize a bookkeeper to access your financial information. While it may seem daunting initially, it's a necessary step for your accounting company to manage your books. Many accounting platforms and apps offer a straightforward method to grant access to additional users without providing full permissions.
Accounting Platform Access
If you're already using cloud services, simply include the bookkeeper in your QuickBooks Online file or Xero via the Manage Users or a similar tab. Opt for the desired access level (typically "accountant" access). Add their name and email address, they'll receive an email confirmation, and voila, you're finished!
For desktop programs, the process is a bit more intricate. You'll need to either download a backup/portable file of your financial data and send it to the bookkeeper or establish remote access to your computer for them.
Bank and credit card statements
After granting them access to your books, the bookkeeper will require access to your banking and credit card institutions. Many national and regional banks allow you to add someone to your account as a read-only user. This grants the bookkeeper the ability to retrieve monthly statements and view check images without accessing your funds. This crucial step streamlines the bookkeeper's work, eliminating the need to disturb you every time they require information from your bank.
Access to additional essential documents and applications
Depending on your operational setup, you may need to provide additional documents for the bookkeeper to understand your business:
Payroll: Share reports from your third-party payroll provider.
Tax documents: Provide previous-year tax documents for reconciliation.
Receipts: Share physical or digital receipts, organized in tools like Expensify.
Online bill pay: Transition this responsibility to the bookkeeper or have them set it up for you.
Other apps (e.g., Shopify, PayPal, Stripe): Grant access to financial tools for comprehensive financial management.
2. Transition from paper to digital
3. Set mutual expectations
5. Communicate, communicate, communicate!
The cornerstone of a successful bookkeeper/client relationship is communication, regardless of the bookkeeper's proximity. Explore communication methods that suit you, such as email, weekly phone calls, video conferences, or text messages. This is crucial during the initial ramp-up period for the new person to work efficiently. Regularly address any issues promptly and revisit expectations periodically to ensure both parties are aligned.
Outsourcing your bookkeeping may appear daunting, but it's surprisingly straightforward. Discover the 7 advantages of outsourcing your bookkeeping operations here. For top-quality bookkeepers with industry-specific expertise, reach out to us today and explore how our solutions can enhance your small business!
Transition any non-digital processes to digital with your bookkeeper's guidance: digitize paper invoices, receipts, and expense tracking. Various low-cost or free tools are available for efficient digital management. This shift contributes significantly to the advantages of outsourcing, offering a comprehensive digital record of your business activities.
Next, customize the approach. Each small business is distinct, requiring tailored attention. Decide on the bookkeeper's working frequency, whether daily or weekly/monthly updates. Specify desired monthly report details.
Determine communication preferences: How frequently do you prefer updates? Outline the process for questions and specify peak communication periods during busy business seasons.
Initiate a kickoff call with the bookkeeper for seamless alignment on these details.
4. Define the process
Establish a clear communication process for the bookkeeper's queries regarding expense categorization and timelines for your responses.
"Optimizing this procedure for maximum efficiency includes a few key strategies:"
Google Docs: The bookkeeper logs questions as they arise, and you respond on a regular, predetermined schedule. The ongoing list ensures all past queries and responses persist until their frequency naturally diminishes.
Reports: If you remain uncertain about expense categorization, bookkeepers can use reports to illustrate the assigned accounts. Specific reports highlight each transaction's coding, enabling you to identify and reassign any discrepancies easily.
Expense Software: Several software options assist in tracking and storing receipts. Bookkeepers can often be granted user access to these platforms, allowing them to view receipts and assigned account codes. While working remotely, the bookkeeper relies on you to address business-specific questions, ensuring your oversight.
Online Accounting & Bookkeeping Services
Payroll Services
Reconciliations
Invoicing
Ease your concerns about the intricacies surrounding coworker compensation in your accounting.
Receive monthly reconciliation updates in your financial statements and reclaim the time that would have been spent during month-end close.
Get paid without the inconvenience of handling invoices; let us handle that for you.
Accounts Receivable
Monthly Reporting
Accounts Payable
Our system precisely monitors payment activity, and we actively pursue any overdue payments.
Receive a monthly financial report promptly—essential for comprehending your business's status and making crucial decisions.
We handle timely payment of vendor invoices, fostering positive relationships and simplifying cash flow management.
Job Costing
QuickBooks Accounting
Financial Trends Analysis
Know the expense and potential benefit of a project before you invest the resources.
Our QuickBooks Certified accountants can establish and optimize your account for optimal performance and user-friendly operation.
Gain the necessary insights to comprehend financial outcomes for your company, projects, or both.
