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How to Outsource Your Bookkeeping?
Before going into the modalities of how to outsource your bookkeeping functions, consider this – do you really need to outsource at all. The general consensus is “YES” only from a savings-in-costs angle. But there is much more to it, especially for small businesses and start-ups. The benefits of a decision to outsource bookkeeping services should be weighed against the many positives and not merely against savings.
One of the first things that should cross your mind is how best to utilize the time you’ll have on your hands after outsourcing. Consider the possibilities – more time for heightened client relationships and value-added services and more time for concentrating on core activities matching the needs of the industry you are in.
It will also save you the trouble of looking for trained accountants and setting up an accounts department with all related hardware and software. When you consider all these factors you’ll find that it is definitely preferable to use QuickBooks bookkeeping services as the work will be done in a more effective and cost controlled manner.
Once the decision to outsource has been taken by you, the next step should be to choose an outsourcing company that will be in sync with your company’s goals and objectives and be able to seamlessly match your needs. This is crucial and the following steps should be kept in mind.
- The available resources
The available skill sets and the pool of qualified personnel at their disposal should be verified in depth. There can be nothing more disastrous than below par performers finalizing your accounts and balance sheets. Look for such benchmark degrees in the professionals – AAT (Association of Accounting Technicians), ACCA (Association of Chartered Certified Accountants), ICB (Institute of Certified Bookkeepers) or CIMA (Chartered Institute of Management Accountants). Ensuring this is an assurance that your accounts will be accurate and be finalized within mutually agreed time frames.
- Use of the latest software
Select an outsourcing company that uses the latest accounting software that will be compatible with your type of work and one that will be flexible enough to match your future changing needs. However, the standard requirements can be pegged at the use of advanced spreadsheets, IRIS, QuickBooks, Xero, MYOB, and Sage.
- Decide on the services to be outsourced
Many companies decide to outsourcing bookkeeping services in a piecemeal fashion keeping in-house processing of data that can affect operational confidentiality and outsourcing routine transactions. This is generally not advisable as most aspects of accounts data are interlinked. Take VAT for example. It is linked to sales and purchase invoices as well as receivables and both are by default linked to bank statements and reconciliation. You cannot hold back one and outsource the other. Hence, decide on the capabilities and outsource accounting functions comprehensively.
- Check out the credentials
While it is true that you are the final judge and jury about choosing whom to outsource your bookkeeping services to, it won’t hurt to ask around. Look for testimonials from previous and existing clients, their market reputation and financial stability and their ability to deliver assured and consistent results. Most importantly insist on iron-clad privacy clauses, breaking of which gives you the right to go for litigation and compensation.
Of normal business activities, not all take up your time every day. Some might need your focus for a few days every month, some maybe a week or two. But bookkeeping is a full-time activity that will require your undivided attention every day if you do not decide to outsource. Add to it the pressure of being accurate and generating reports on time. By opting to outsourcing services you get all the time in the world to add value to your clients’ businesses.
Outsource your bookkeeping workload to Cogneesol and become assured of complete efficiency, accuracy, and security. We have one of the best team with the right skills, technology, and experience in place to provide our clients with the best results. To know more, contact us at +1-646-688-2821 or write to [email protected].
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