While a certified public accountant (CPA) will provide insight and analysis of your financial data, bookkeepers will get into the nitty gritty of your day-to-day transactions. Bookkeepers are responsible for keeping record of all financial statements and transactions made by a business. They perform the preliminary functions needed in order for the accountant to do their job at the end of each period.

Bookkeepers use an online accounting program to keep track of each transaction and the purpose of the transaction. Bookkeepers also handle payroll and payroll taxes, send invoices, handle accounts payable and keep track of overdue accounts. All these seemingly small tasks combined create one big job. Without a great bookkeeper, your company could be losing thousands of dollars each period.

An outsourced bookkeeper is a person or company that will perform your bookkeeping tasks out of office. Oftentimes, a bookkeeping service is essential for business growth and health. It leaves room for everyone in-office to be solely focused on their own tasks and can eliminate the cost of an in-house bookkeeping team.

Essentially, you’ll give a third-party bookkeeper access to important financial information like bank statements, payroll, tax documents, and your accounting software. They’ll take it from there, generating financial reports, ensuring your ledgers are up to date, and tracking money that goes both in and out of the company, among other essential tasks.

Outsourced bookkeeping services are a symbiotic relationship between your business and a third party that will balance your books. Though the process might look different for small vs. big businesses, the steps will generally be the same.

1. Your bookkeeper will gain access to your financial accounts and software.

2. Your bookkeeper will work behind the scenes to balance your books, monitor cash flow, and create financial reports.

3. At the end of each month, your bookkeeper will send over a customized financial report package.

Outsourced bookkeeping can save your company time and money. Plus, full-time bookkeepers are experts in the field that can generate more thorough reports and documents that take some pressure off your back once tax season hits.

Outsourced bookkeeping streamlines the financial management process and is much more efficient than traditional in-house bookkeeping. Doing the bookkeeping yourself is a time-consuming task, time that you most likely don’t have as a business owner. When you outsource bookkeeping, you will save valuable time that can be put back into improving your business in other ways.

Outsourcing bookkeeping is cost-effective and will save your company money. Experienced bookkeepers are often better at finding overdue clients and cuts your company could make to increase overall profit. Plus, having an outsourced bookkeeper is more cost-efficient in the first place, since you’re not technically their employer. You won’t have to worry about their insurance, benefits, or training.

Think of it this way: The average bookkeeper in the United States makes about $38,000 per year. If you outsourced bookkeeping at a rate of $2,500 per month, you’d spend $30,000 per year, saving your company about $8,000.

Having an outsourced bookkeeping service provider is known to reduce many common errors made by business owners. Modern bookkeeping is often done through a cloud-based automated system that allows you and other experts to view your records at any time, so there are many eyes on your books. This leaves little room for error, especially considering outsourced bookkeepers are highly trained, so there is no adjustment period needed. This can improve your peace of mind that your bookkeeping needs are being well taken care of.

Professional bookkeeping provides more in-depth financial reports than typical in-office bookkeeping. Because online bookkeeping uses virtual platforms, business owners can see their records anytime, including the cash flow and balance sheet. Every single transaction is at your fingertips at any time.

It’s no secret that tax season can be a headache. Having all of your bookkeeping together throughout the year will make tax season much easier. Up-to-date reports will be provided monthly throughout the bookkeeping process, giving you a good idea of how much you’ll owe when tax season hits. Bookkeepers can also help with tax preparation and can help you navigate your tax returns.