Why Every Business Needs Professional Bookkeeping Services

Professional bookkeeping services offer a range of benefits to individuals and businesses alike. If you’re looking to save time and improve the accuracy of your financial records, a professional bookkeeper may be just what you need. Here are some of the key reasons why you might consider hiring a professional bookkeeper:

• Time-saving: Professional bookkeepers have the expertise and experience to handle your financial records efficiently and accurately. They can take care of tasks like reconciling bank statements, processing invoices, and preparing financial statements, freeing up valuable time that you can use to focus on other aspects of your business.
• Improved Budget Understanding: A professional bookkeeper can help you understand your business budget by providing regular financial reports and insights into your spending patterns. This information can be incredibly valuable in making informed business decisions and tracking your progress over time.
• Reduced Stress: Keeping on top of your financial records can be incredibly stressful, particularly for business owners who are managing multiple tasks and responsibilities. A professional bookkeeper can take some of this stress away by handling the day-to-day tasks of bookkeeping and providing you with peace of mind that your records are in good hands.
• Support and Guidance: For many business owners, it can feel like they are working in isolation. A professional bookkeeper can provide support and guidance on a range of financial and bookkeeping issues, helping you to feel more connected and confident in your business decisions. 

How much does a bookkeeper cost?

When it comes to professional bookkeeping services, the cost can vary widely depending on the type of service you need and the experience and expertise of the bookkeeper. However, there are several pricing models that can help you understand what to expect and make a more informed decision when it comes to hiring a professional bookkeeper.

• Flat Rate: Some professional bookkeeping services offer a flat rate for specific services or a combination of services. This can be a great option if you need a specific task performed and want to know the exact cost upfront. The flat rate eliminates some of the uncertainty around hourly billing, making it easier to budget for your bookkeeping needs.
• Subscription Based: Other professional bookkeeping services offer monthly subscription packages for a flat rate. This is a convenient option for businesses who need a range of bookkeeping services and want to simplify their budgeting. Subscription packages are often tiered, so you can start with a lower-priced option and upgrade as your needs change.
• Hourly-based Billing: Many professional bookkeepers charge by the hour, which can be a good option for businesses that need flexible and customized services. However, it can be difficult to anticipate the value of these services upfront, so it’s important to find an efficient and experienced bookkeeper to ensure you get the most for your money.

Ultimately, the cost of hiring professional bookkeeping services will depend on your specific needs and the experience and expertise of the bookkeeper you hire. By understanding the different pricing models available, you can make an informed decision that works best for your business. 

What factors should you consider while looking for a bookkeeper?

Before you start searching for professional bookkeeping services, it’s important to know what your specific requirements are. This will help you find a bookkeeper who is the right fit for your business and can deliver the services you need. Here are four key considerations to keep in mind:

• Business Type: Different businesses have different bookkeeping challenges. For example, a service business may have different needs than a retailer or a manufacturing business. When searching for professional bookkeeping services, look for someone with relevant experience in your industry to ensure they understand your unique challenges.
• Services Required: You may choose to keep some bookkeeping tasks in-house, but have the flexibility to outsource everything if you become too busy. Consider what type of services you need and how often you need them to help you find the right professional bookkeeping services.
• Software Used: If you’re already using a specific type of bookkeeping software, you’ll want to find a bookkeeper who is also familiar with that software. This will ensure a smooth and efficient process.
• Relationship: Are you looking for a bookkeeper who is also a trusted advisor, a trainer, or just someone to perform the tasks for you? Consider what type of relationship you want with your bookkeeper, as this will help you find and hire professional bookkeeping service that is the right fit for your needs.

By taking these considerations into account, you can find professional bookkeeping services that match your specific requirements and help you achieve your business goals.

Where Can I Find a Bookkeeper?

Once you have determined your needs and requirements, it’s time to start searching for an outsourced bookkeeping service that will be the ideal fit for your business. Sharing your financial data with someone else requires trust and comfort, so it’s important to find the right provider. Here are some tips to help you narrow down your choices:

• Service Provider Type: Consider whether you want to work with a sole operator, a small consultancy, or a larger company. Make sure they have enough personnel to handle your needs.
• Services Offered: Look for a bookkeeper who offers general bookkeeping services, specializes in your type of business or industry, or provides more advanced services and solutions. This will help you find a provider that is well-equipped to meet your specific needs.
• Communication Preference: Do you prefer face-to-face interactions or are you comfortable with remote service? Although the services can be delivered remotely, you may want someone to come into your business regularly for a more personal touch.

By considering these factors, you can find an outsourced bookkeeping service that will be the right fit for your business and help you manage your finances with confidence.

Contact your networks.

When searching for a bookkeeper, it’s important to consider various sources of information and recommendations. Here are some suggestions to help you find a qualified professional:

• Personal Recommendations: Reach out to your friends, acquaintances, and social networks. They may be able to recommend someone they’ve had a positive experience with.
• Business Associations: Your local business association may also be able to give you some leads. They may have a list of trusted bookkeepers who work with businesses in your area.
• Bookkeeper’s Association: Check if there is a bookkeeper’s association or similar organization listed in your area. These organizations can provide you with a list of qualified bookkeepers who have been vetted and meet certain standards.
• Your Accountant: If you already have an accountant, consider talking to them about who they currently work with. Finding a bookkeeper who has a working relationship with your accountant can make the relationship between the three of you even stronger. Additionally, if they both use the same software, it can streamline the process and ensure that your financial data is well-organized and easy to access.

By leveraging these resources, you can find a bookkeeper who will be a good fit for your business and help you manage your finances with ease.

Making a final choice

Once you’ve found some potential bookkeepers through recommendations or searching, it’s important to ask them some questions to make sure they meet your needs and you’re comfortable with them handling your financial data. Some important questions to ask include:

• What level of accounting services do they provide, such as month-end management reports, trial balances, or year-end preparations?
• What are their qualifications, experience, and professional memberships, and do they regularly engage in continuing professional development to stay updated in the field?
• Do they have liability insurance in case of errors or mistakes?
• Do they have experience working with similar businesses or industries to yours?
• How many clients do they handle, and can they provide the level of attention and service you need?

After talking to the bookkeepers, it’s also a good idea to get references from their past clients and have your accountant review their work to ensure they’re up to the job. Outsourced bookkeeping services such as the Ossisto Bookkeeping Services can help you connect with a highly experienced and trustworthy bookkeeper to handle your financial needs.

How to Handle Bookkeeping

Bookkeeping includes everything from basic data entry to tax prep. Let’s look at the core jobs and see how they’re done.

How to do bookkeeping:

Bookkeeping is an essential aspect of managing a business’s finances. It involves keeping accurate and up-to-date records of financial transactions, including sales, purchases, receipts, and payments. Small business owners have the option of doing their own bookkeeping or outsourcing to professional bookkeeping services. To find the right balance between doing it yourself and outsourcing, it is crucial to assess your skills, available time, and resources.

Setting up a chart of accounts:

When starting a new business, setting up a chart of accounts is an important step in bookkeeping. A chart of accounts is a list of all the accounts used to categorize financial transactions. This system helps to organize financial information and make it easier to understand the financial health of the business.

How to do bookkeeping data entry:

Data entry is the foundation of bookkeeping. It involves entering financial transactions into the accounting system, such as sales, purchases, receipts, and payments. Accurate data entry is crucial to understanding the financial health of the business, and mistakes can have significant consequences.

How to do bank reconciliation:

Bank reconciliation is a critical aspect of bookkeeping. It involves comparing the balance in a business’s bank account with the balance in its accounting records to ensure that they match. This process helps to identify and correct errors, as well as identify any potential fraud or theft.

How to manage accounts receivable:

Many businesses issue invoices for goods or services provided to customers. Accounts receivable refers to the money owed to the business by its customers. Managing accounts receivable involves tracking incoming payments and following up on overdue payments.

How to manage accounts payable:

Paying bills is an important aspect of bookkeeping. Accounts payable refers to the money owed by the business to its suppliers. Managing accounts payable involves keeping track of outstanding bills, paying bills on time, and reconciling payments.

Creating monthly financial reports:

Bookkeepers create financial reports to provide an accurate picture of the financial health of a business. There are many different financial reports that can be created, but some common ones include income statements, balance sheets, and cash flow statements. These reports are usually created on a monthly basis to monitor the business’s performance and make informed decisions.

How to do payroll:

Payroll is the process of paying employees for their work. It involves calculating gross pay, withholding taxes and other deductions, and issuing net pay to employees. Payroll also involves tracking vacation time, sick leave, and other benefits. Bookkeepers are often responsible for handling payroll and ensuring that it is done correctly and on time.

How to prepare tax returns:

Tax returns can be challenging for small business owners, with deadlines to meet and rules to follow. Bookkeepers are often responsible for preparing and filing tax returns, including income tax returns, sales tax returns, and payroll tax returns. They ensure that the business is in compliance with tax laws and regulations.

Using bookkeeping software:

Bookkeeping software can help save time and money by automating many bookkeeping tasks, such as data entry and financial report creation. There are many different bookkeeping software options available, each with its own features and benefits. Business owners can choose the software that best fits their needs and budget.

Using professional bookkeeping services:

Professional bookkeeping services can provide a cost-effective and time-efficient solution for small business owners who don’t have the time or expertise to handle bookkeeping themselves. Bookkeeping services can handle all aspects of bookkeeping, from data entry to tax preparation, and provide business owners with accurate and up to date financial.

Bookkeepers Types & Outsourced Bookkeeping Services

When it comes to outsourcing bookkeeping services, there are two main options: hiring a local bookkeeper or a virtual bookkeeper.

• Local Bookkeeper: Hiring a local bookkeeper involves finding an individual or a firm that is based in the same geographic location as your business. This allows for in-person meetings and easy access to important financial records. The advantage of a local bookkeeper is that they have a better understanding of local regulations and can offer more personalized service. However, it can be more expensive and may not be feasible for businesses in remote areas.
• Virtual Bookkeeper: A virtual bookkeeper is an individual or firm that provides bookkeeping services remotely. This is a cost-effective option for businesses as it eliminates the need for office space and other expenses associated with hiring a local bookkeeper. Virtual bookkeepers work from their own offices and communicate with clients through email, phone, and video conferencing. This option is particularly suitable for small businesses and startups that are looking to reduce their overhead costs.

Ultimately, the choice between hiring a local bookkeeper or a virtual bookkeeper will depend on your specific business needs, budget, and preferences. It’s important to consider factors such as cost, location, level of personalization, and the type of bookkeeping services you need when making your decision.

Types of Outsourced Bookkeeping Services

Outsourced bookkeeping services are an option for businesses that want to delegate the time-consuming and complex task of bookkeeping to professionals. The following are some of the types of outsourced bookkeeping services available:

• Data entry services: This type of service involves the bookkeeper entering all the financial transactions into a software system, ensuring accuracy and completeness of the information.
• Bank reconciliation services: This service helps businesses to reconcile their bank statements with the financial records in their software system, ensuring that there are no discrepancies and that the books are up-to-date.
• Accounts payable and accounts receivable management: Bookkeepers can help manage the invoicing and payments of a business, ensuring that all bills are paid on time and that the accounts are up-to-date.
• Payroll services: Bookkeepers can help with payroll processing, including preparing and submitting tax forms, calculating employee salaries and taxes, and providing regular payroll reports.
• Financial reporting services: This type of service involves the bookkeeper preparing regular financial reports for the business, including balance sheets, income statements, and cash flow statements.
• Tax preparation services: Bookkeepers can help with the preparation and filing of tax returns, ensuring that all deadlines are met and that the business complies with tax regulations.
• Bookkeeping software setup and training: Some bookkeeping services offer support with setting up bookkeeping software, as well as training on how to use it effectively.

Outsourcing bookkeeping services can help a business to focus on its core activities while ensuring that its financial records are up-to-date, accurate, and in compliance with regulations.

How does local bookkeeping operate?

When it comes to outsourcing bookkeeping services, one option is to hire a local bookkeeper. A local bookkeeper is someone who works in the same geographic area as your business and can offer their services either in person or online. There are two types of local bookkeepers – freelance bookkeepers and bookkeeping firms.

Freelance bookkeepers are independent contractors who offer their services on a one-on-one basis. They may have varying levels of experience and skill, and their rates can be more affordable than those of bookkeeping firms. However, there is always a risk that the bookkeeper may be unavailable if they need to take time off or are unable to continue providing their services.

Bookkeeping firms, on the other hand, typically offer more guarantees and assurances. For example, their bookkeepers may be professionally certified, and they may have backup bookkeepers available in case one is unavailable. However, they also tend to charge more for their services.

When choosing a local bookkeeper, it’s important to ensure that they can provide you with secure, immediate access to your financial reporting in an accounting software that you are comfortable with. Additionally, it’s crucial to make sure that you can trust the bookkeeper to handle sensitive financial information, such as bank and credit card information, invoices, and important documents.

It’s important to note that you should never give your bookkeeper control over your treasury functions, such as handling investments, signing checks, making online payments, or wire transfers. This is because you should always be the sole signing authority when it comes to these functions.

Outsourcing your bookkeeping to a local bookkeeper or a bookkeeping firm can be a great way to save time and ensure accuracy in your financial reporting. Just be sure to choose a bookkeeper that you can trust, has the experience and skill necessary to meet your needs, and provides you with secure, immediate access to your financial reporting.

How does Virtual bookkeeping operate?

Virtual bookkeeping is a modern, paper-free method of handling your financial records. It refers to outsourcing your bookkeeping to a professional who will manage your books and financial information through an online platform.

This type of bookkeeping is a great option for those who are comfortable using online banking, prefer a flat monthly rate over hourly billing, and want the convenience of accessing their financial information from anywhere, any time through a mobile app. Communication is typically done online or over the phone, making it easy and convenient.

Virtual bookkeeping works by connecting you with real bookkeepers through a secure online account. The bookkeeping service will automatically download your expenses through your online banking and merchant processor, eliminating the need for you to send physical receipts.

At the end of the year, you will receive a year-end financial package that contains all of the financial statements your accountant will need to file your small business tax return. For instance, with Bench, you will be paired with a team of professional bookkeepers who will gather your financial data, turn it into tax-ready financial statements each month, and allow you to track your finances, download financial statements, and communicate with your bookkeeping team.

Local vs. Virtual bookkeeping

Local bookkeeper:

• Ideal for businesses with less than $1 million in revenue and fewer than 5 employees
• Works well with paper-based recordkeeping.
• Can be flexible with working arrangements, either in-person or online
• Hourly billing may result in varying monthly costs

Virtual bookkeeper:

• Ideal for businesses with less than $1 million in revenue and fewer than 5 employees
• Uses online banking.
• Offers a flat monthly fee instead of hourly billing.
• Provides instant access to financials through a mobile app.
• Offers paper-free recordkeeping.
• Provides instant online communication with a team of bookkeepers
• Avoids service gaps if your bookkeeper is unavailable

How Ossisto Outsourced Bookkeeping Services can help

Outsourcing your bookkeeping to a professional service like Ossisto can bring numerous benefits to your business. Here are some of the ways in which Ossisto Outsourcing Bookkeeping Services can help:

• Time-saving: By outsourcing your bookkeeping to Ossisto, you can free up time and focus on other aspects of your business. This is especially beneficial if you are a small business owner who is trying to handle multiple responsibilities.
• Increased accuracy: Bookkeepers at Ossisto are trained professionals with years of experience. They use best practices and follow a well-established process to ensure accuracy in bookkeeping. This can help prevent errors and ensure that your financial statements are accurate and reliable.
• Cost-effective: Hiring a full-time in-house bookkeeper can be expensive, especially for small businesses. Outsourcing to a professional bookkeeping service like Ossisto can help you save money, as you only pay for the services you need.
• Access to professional expertise: When you outsource to Ossisto, you gain access to a team of experts who are up-to-date with the latest bookkeeping techniques and regulations. They can provide you with advice and guidance, helping you make informed decisions about your finances.
• Increased security: Your financial records contain sensitive information that must be protected. When you outsource to Ossisto, your data is stored securely in the cloud, and only authorized personnel have access to it. This helps ensure that your financial information is protected and secure.
• Scalability: As your business grows, your bookkeeping needs will change. With Ossisto, you can scale up or down your bookkeeping services to match your changing needs, without the hassle of hiring and training new employees.
• Tax preparation: Come tax time, Ossisto can provide you with a complete and accurate package of financial statements that your accountant can use to prepare your business tax return.

Overall, outsourcing your bookkeeping to a professional service like Ossisto can help you save time and money, while providing you with the peace of mind that comes with having accurate and secure financial records.