The Complete Guides of Outsourced Bookkeeping Service
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Arthur Phan
Introduction
Recording daily finance-related activities poses a challenging issue for every business. Consequently, most enterprises seek cost-effective bookkeeping services to release the burden of routine tasks.
Integrating a professional outsourced bookkeeping service brings various benefits regarding advanced software and specialized experts. However, choosing an inexperienced agency can cause potential risks of unreliable data records for financial reports and inability to meet compliance duties.
Due to the important effect of bookkeeping tasks on building businesses’ stable financial development, the requirement for specialized services always secures a considered point in the overall strategic plan. For more information on the application and guides to selecting an appropriate execution team, please enter this article now.
What are Bookkeeping Services?
Bookkeeping services work directly with financial data to manage businesses’ operations regarding cash flow, accountability, payroll, and other types. As the first step in the comprehensive accounting process, bookkeeping guarantees a stable foundation to grow businesses and meet compliance requirements.
Commonly, professional bookkeeping services will assist your businesses in the following tasks:
- Cleaning up accounting books
- Reconciling financial records to bank statements
- Being in charge of budgeting
- Monitoring key performance indicators (KPIs) such as customer value, lifetime value, cost of acquisition, or average revenue per client
- Preparing tax returns
- Managing accounts receivable and accounts payable
- Managing invoices and bills
Benefits of Bookkeeping Services
Along with accounting, bookkeeping tasks ensure a transparent overview of the business’s financial situation regarding revenue and expense. The administrative board can prepare plans for profit-gained strategies and tax-filling obligations based on accurate data records.
As surpassing manual bookkeeping in skills and processing time, professional outsourced services help manage all the incurred transactions with the following benefits.
Cost-effectiveness
Outsourced bookkeeping services cost businesses' required sections without being charged for unnecessary stuff. Meanwhile, hiring an in-house team causes more operation costs regarding training, recruiting, wage, insurance, and other expenses. Altogether, when comparing all the cost-relative factors, the outsourced services offer a more profitable solution with 40% to 60% savings based on the total revenue.
Save Time & Resources
Handling tons of transaction paperwork manually to record and reconcile financial data costs various time and resources. Furthermore, being stuck in multiple routine tasks can keep you far from core money-generated work that affects your business operation. Therefore, you should hire third-party bookkeeping services to focus more on improving services and customer experiences.
Reduce Errors with Highly-Trained Bookkeepers
Third-party bookkeeping service avoids making the slightest errors with advanced cloud-based software and the profound experts’ knowledge. Indeed, the outsourcing team will take less time to become familiar with the business's current bookkeeping system. Thus, they can consult well-suited practices to ensure the accuracy of financial records.
Assess Easily with Advanced Cloud-Based System
Cloud-based bookkeeping software facilitates a transparent and streamlined working experience, allowing all relatives to assess the database anywhere and anytime. Specifically, the online platform provides high flexibility in inputting and organizing financial records via a visual interface. Involved entities can track the real-time task progress to give timely feedback to each other for a better mutual working experience.
Receive Insightful Financial Reports
The detailed analysis generated from profit and losses, balance sheets, and cash flow reports helps businesses address gaps in the overall operation. Along with the practical consultancies of our experts, enterprises can modify their strategies to increase the profit earned. Besides, the outsourced bookkeeping services will ensure no obstacles in tax preparation while guaranteeing accuracy in the whole process.
Comparisons Between Bookkeeping and Accounting
Similarities
By focusing on financial data, bookkeepers and accountants cover their functions in describing the business’s economic situation with insightful reports. The quality of bookkeeping work lays the foundation for accountants to conduct their jobs.
Genuinely, these 2 roles share the following common features:
- Solid background knowledge of financial and accountant works
- Financial transaction records and classification
- Processing all the work on the same software
Differences
Despite the correlative relationship in the work duty, these 2 roles focus on different aspects. Specifically, bookkeeping requires skills in good management and carefulness. Meanwhile, accounting is highly evaluating logical thinking and problem-solving skillsets.
The other criteria to clarify the difference between bookkeeping and accounting include:
- Scope of work:
- Bookkeeping guarantees accurate records of daily transactions (sale invoices, accounts payable, accounts receivable)
- Accounting is responsible for identifying gaps in business operations from the financial analysis’ results
- Required degree: Bookkeepers are not compulsory to have a bachelor’s degree. Meanwhile, it is a mandatory requirement for accountants.
- Periods:
- Bookkeeping is a day-to-day task with the responsibility of recording updated transactions.
- Accounting is periodical when being handled monthly, quarterly, or yearly.
Top Popular Software for Bookkeeping and Accounting
Hiring third-party bookkeeping and accounting services means relocating your company’s current accounting system to the new software-based one. Therefore, you should prepare to be familiar with new software to avail of all the benefits.
The list of popular software applied by professional bookkeeping and accounting services includes:
- Xero: integrating the most advanced features to support businesses with an intuitive and user-friendly interface. Companies will have multiple plan choices to implement the bookkeeping process effortlessly. However, it has a limitation for multi-currency flexibility unless you paid for the highest-offered plan.
- Quickbooks: offering all the standard features to input and organize financial data. Besides, you will have diverse options for financial reports regarding balance sheets, income, and cashflow statements. Nevertheless, this software is unsuitable for small businesses and startups due to expensive pricing plans.
- Freshbooks: Guaranteeing a satisfied user experience via a well-designed interface. Specifically, small businesses with an unstable accounting background can easily use the software to track expenses, input invoices, manage projects, and view reports. However, this software is not available for payroll and document management.
Best Bookkeeping Service for Your Businesses
It is recommended to choose a full certificate and open-to-communicate bookkeeping service. Consequently, you can receive the best quality financial data management without worrying about insecurity and inaccuracy.
As possessing a team of dedicated and experienced experts, G.O.C (Global Offshore Company) provides comprehensive bookkeeping services covering all aspects of businesses’ financial data. Contact us for the most optimized plans to integrate all the advanced features into your company’s accounting system.
Disclaimer: This guide serves as a reference tool and should not substitute legal advice. For tailored guidance, consult G.O.C's customer services.
