Outsourcing Bookkeeping & CFO Services: What To Know

Outsourcing Accounting — source: pexels.com

Bookkeeping is one aspect of business so frightening to some would-be entrepreneurs, it actually stops some people from opening businesses in the first place. Bookkeeping can be hard to keep straight, and if math is not your skillset, the prospect of accidentally getting your bookkeeping messed up is all too real.

If this is you, outsourcing bookkeeping may be a good option for you. Outsourcing to a bookkeeping service is ideal for those who are too busy to do their own bookkeeping or want the peace of mind of knowing that it is done properly.

If you’ve been thinking about outsourcing your bookkeeping & CFO services, here is what you need to know.

The benefits

It’s not just getting someone else to do the input that makes outsourcing a good option. You’re also getting an impartial third party to look at your books, and point out any issues. You may get a clearer understanding of your businesses financial picture, and you’ll have access to financial advice.

The trade-off, is, of course, you’ll be paying another employee for that privilege. If you can’t afford the monthly expense, it may not be a good option for you.

Things to find out about your bookkeeper

The value of the bookkeeper is in the benefits they provide. If your bookkeeper is unqualified, then you may as well be doing the bookkeeping yourself. It’s important to check your bookkeeper’s qualifications before you hire them. Some examples of good qualifications include:

· ICB (Institute of Certified Bookkeepers)

· ACCA (Association of Chartered Certified Accountants)

· CIMA (Chartered Institute of Management Accountants)

· AAT (Association of Accounting Technicians)

If your bookkeeper has any of these, they are more than qualified to handle your bookkeeping and can provide you with the expertise you need.

Before you hire them, however, you should also do your due diligence and check their reviews, etc. Your bookkeeper is going to have access to a lot of your sensitive information. They’ll know pretty much everything about your business, and have access to your invoices and other sensitive data. You don’t want this information to get in the wrong hands.

Five star reviews aren’t everything, but they’re a good indication that the person you are thinking about hiring is in good standing with the people who have used them in the past.

Be prepared for your bookkeeper

Once you’ve decided on a bookkeeper, your next step is to be ready to give them the information they need in order to do their work. This means collecting up receipts, invoices, employee salaries, and petty cash. All of this information can be quite difficult to gather all at once, but it’s important for them to be able to help you.