Why Outsource Bookkeeping?
Looking for ways to simplify business management? Outsourced bookkeeping services may be the difference between burnout and peace of mind that allows you to thrive. Read on to learn the ins and outs of outsourcing bookkeeping and accounting services. And find out if it is a good fit for your business.
The Challenges of Business Management in 2022
As technology advances and economic times get challenging, many business owners are keenly aware of the need to simplify and streamline their businesses. There are countless automation tools and cloud-based programs that promise to save time and money for entrepreneurs. The options can be overwhelming.
We're sure you're also aware of the unprecedented labor shortage going on, with many businesses having to run with a bare-bones team of employees.
Business owners have it tough right now. Many feel stressed and overworked. A recent national survey reported on by Forbes shows 42% of small business owners have experienced burnout in the past month. How about you?
The Problem With Cloud Accounting Software
Bookkeeping and accounting software is often the top choice for most business owners. A survey by Statistia showed that 64.4% of business owners use software instead of working with an accountant. While solutions like Quickbooks are popular for a reason, there are many valuable insights they simply cannot provide.
It's built for data management, not business growth.
For one, this software runs on an algorithm, not on personal knowledge of your unique business situation. You also miss out on invaluable resources like being the first to know about government relief like PPP and ERTC. Having an accountant that walks you through the application process can help you receive life-changing funds. The human touch of an accountant or bookkeeper is something no cloud program can replicate.
It takes time away from what you enjoy.
Additionally, bookkeeping software such as Xero still takes a considerable amount of time to do right. You may be surprised to know that based on this 2015 survey, 40% of business owners spend over 80 hours a year on bookkeeping tasks. The majority spend over 41 hours. These programs simplify and automate as much as they can, but you're still stuck in the back office when you could be doing more important tasks.
And if bookkeeping and accounting is not your bag, it can turn into a chore that sucks the joy out of business management. Not to mention a careless mistake could be costly.
The Cost of an In-House Bookkeeper
If your business has more demanding accounting needs, you may choose to hire a bookkeeper as an employee. It is a huge time-saver to delegate bookkeeping service tasks to a professional. And having a dedicated expert there for you whenever you need it provides peace of mind.
However many small to medium sized businesses may find it to be too large an investment. According to Salary.com, the median salary for an entry-level bookkeeper with no specialized experience or skills is around $42,000. For an accountant, who can provide reporting and insights to support the growth of your business, the median salary is $59,000.
The Benefits of Accounting Groups
What is an accounting group? An accounting group, or accounting firm, is an independent company comprised of a staff of bookkeepers, accountants, and CPAs. They normally have a portfolio of clients with a dedicated account manager for each client. The members of an accounting group pool their experiences and knowledge to keep each other accountable (haha, get it) and at the top of their game.
A Range of Services and Combined Knowledge
With an accounting group, you get the benefits and expertise of a bookkeeper, accountant, CPA, and even a CFO at a fraction of the price of hiring these employees in-house. Because of the diversity of their staff, accounting groups can provide a whole range of services to their clients based on their needs. Anything from basic bookkeeping service to payroll to tax filing. They can even help with government programs like ERTC.
Flexible and Personalized Services
Accounting groups can generally be a good fit for any size business, although some prefer to work with a niche. A well-developed accounting group staff can provide affordable and simple services for the smallest businesses. And CFO-level insights, forecasting, and consulting for medium to large corporations.
What Does an Accounting Group Charge?
It depends on the firm. Some charge hourly, others charge a flat rate per service, and many (like us) charge a monthly fee. The prices are usually lower than hiring in-house help. And are higher than DIY software pricing.
Traditional Vs Modern Accounting Firms
A traditional accounting firm provides its services to local businesses from a physical office. They usually will be up-t0-date on the most modern cloud-based accounting software. Or they might use proprietary software that you won't have access to. Many businesses enjoy knowing their accountant is just down the road.
Modern accounting groups perform their work virtually and remotely. Staff members may work from multiple locations and do their accounting services "in the cloud". Video conferencing via Zoom and Skype are how they stay in touch with clients. Due to having less overhead, these cloud accounting services can be more affordable than a traditional accounting firm's. And you can be assured that their modern approach translates to being up-to-date with the best technology and accounting techniques.
Meet Our Accountants
We’re a small team of friendly neighborhood bookkeepers across the U.S.
What is Outsourced Bookkeeping?
Outsourced bookkeeping (or outsourced accounting) is when you hire bookkeeping services through a third-party outside provider instead of doing it yourself or hiring an employee.
Many businesses outsource bookkeeping by hiring a freelance contractor. They usually charge hourly and can have a range of credentials, experience, and specialties. Finding one that meets your unique needs can be tricky, so make sure you're thorough in the interview process.
Another option to outsource bookkeeping service is to hire an accounting group. This gives you access to a fleet of financial professionals who can meet a variety of needs with experience across a wide range of industries.
Does Outsource Bookkeeping mean my services are done overseas?
No, not necessarily. Some accounting firms may outsource their bookkeepers from outside the U.S. to do the actual bookkeeping services. And they may not be transparent about this. You may not find or hear the term "outsource" when researching or hiring them.
This understandably could be a concern to you. You want someone doing your books that you are confident is well-versed in federal and state tax legislation and financial practices. You also don't want too many links in the chain between you and the person who is managing your sensitive financial information.
At Pioneer Accounting Group, all our staff accountants are our employees and are located in the U.S. Your accountant is always directly connected to you and accessible. Our team members are found coast to coast and we provide services nationwide. Your accountant may very well be in your local neighborhood.
How do we work?
What makes us tick? Modern solutions and world-class service.
Why Choose Outsourced Bookkeeping
Hiring an outside accounting group in order for outsourced bookkeeping is the best of all worlds. And here's why:
Never again have to worry about turnover.
You’ll always have a dedicated manager for your account.
Work is done quickly.
A highly trained staff that works together gets accounting admin tasks done faster.
Gain an entire firm's worth of knowledge
You'll be ready to handle any unique situation you find yourself in.
You get the full-service treatment.
A good accounting group not only does the bookkeeping, they consult on other accounting and operational tasks.
Services an Outsourced Bookkeeping Firm Provides:
While each accounting group is different, this is the general range of services you can expect.
Bookkeeping
Accounts Payable
Merchant transactions
Banking reconciliation
Paying Bills
Employee Exp Tracking
Invoicing Clients
Month-end Close
Year-end Tax Close Files
State tax preparation
Federal tax preparation
Sales tax reporting
Financial Statements
Scheduled Meetings
Online Support
Payroll & Contract Mgmt
Year-end Reports
Cash Flow Management
Company-Wide KPIs
12-Month Forecasting
Revenue Recognition
Bank Relationships
Budgeting
Director Meeting
Resource Planning
Job-Costing
Tax Planning/Projections
How to Choose Outsourced Bookkeeping Services
When searching for outsourced bookkeeping services, look for an accounting group that performs virtually with modern accounting software and easy communication.
You want to find an outsourced accounting firm that has reviews praising a company for being attentive, accessible, and communicative. As well as accurate, ethical, and dependable.
When comparing prices, look for a company that will give you a custom quote unique to your needs. You don't want to be stuffed in a shoebox getting the same services as everyone else, paying for work you may not even need.
Look for an accounting group that makes it clear where their staff is located and what roles the team performs. Review their company website. A good sign of a trustworthy accounting group is that they have an active phone number listed on its website, testimonials from clients, and photos of employees.
Our Best Tip to Outsource Your Bookkeeping:
Ask a prospective accounting group what they know about PPP and ERTC. An outsourced accounting group that goes above and beyond will be educated and on the cutting edge of government relief programs and funding. Ask them how much in funding they've helped their clients qualify for. (If you're curious about us, it's $38 million and climbing).
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Ready to Outsource?
Outsource your bookkeeping with an accounting group that ticks off all the boxes. Our testimonials speak for themselves.
Find out if we’re a good fit for your business. You can start a live chat right here to talk to a real accountant. Or you can request a free 30-minute consultation to learn more about what we offer and get a quote.
We're all about connecting businesses with accounting services that help them thrive, and bookkeepers that genuinely care about them. We'd love to get to know you!
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