What is Outsourced Bookkeeping?
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Every business needs bookkeeping, but not every business owner is good at bookkeeping services. Without proper bookkeeping, you won’t understand your business’s financial position or be able to make important financial decisions.
Bookkeeping can seem mundane, but without it, especially as a real estate investor, you won’t use proper tax strategies, make important buy/sell decisions, or be able to grow your real estate portfolio.
If you don’t understand or have time for bookkeeping, it’s time to consider outsourcing.
Understanding Outsourced Bookkeepin
An outsourced bookkeeper is someone who keeps your books but isn’t on your payroll. It can be less expensive for you and give you more breathing room knowing that your books are handled correctly.
An outsourced bookkeeper chooses the right accounting method, keeps track of your books, and prepares necessary reports for financial and tax decisions.
What Outsourced Bookkeepers Do
Outsourced bookkeepers do many tasks, including the following:
- Record transactions
- Reconcile bank accounts
- Create monthly and annual reports
- Handle accounts receivable and payable
- Handle payroll
What to Consider
Before choosing an outsourced bookkeeper, consider these factors:
- Look for a bookkeeper with an organized approach to bookkeeping. A digital practice is best since you’ll communicate electronically rather than in person.
- Consider how you’re charged. Is it monthly, by the hour, or some other way? A monthly program is usually the most cost-effective.
- How much work must you put in? Outsourcing means you should be able to have a hands-off approach, literally handing everything over and forgetting about it.
How to Start with an Outsourced Bookkeeper
To start your outsourced bookkeeping services, consider what type of bookkeeping you’ll need from the following:
- DIY bookkeeping – We prepare the system based on your needs and give it back to your team to manage
- Full-service outsourced bookkeeping – An outside bookkeeping team manages every aspect of your accounting
- Bookkeeping consulting- You keep the books, but an outsourced bookkeeper checks in periodically.
The key is finding the best bookkeeping services for your business. If you’re too busy or don’t understand the processes, a full-service outsourced bookkeeping service is the best choice.