Considering Outsourcing Bookkeeping for Your Small Business: What You Need to Know

As a small business owner, you understand the demands of managing daily operations while also keeping a close eye on your finances. With a monthly revenue of around $10,000, you may find yourself stretched thin with various responsibilities. One area that can consume a significant amount of your time is Bookkeeping and payroll management.

After handling all financial tasks myself using QuickBooks, I’ve realized that this role is becoming increasingly burdensome. Payroll alone now takes me approximately two full days of work each month, as we pay our employees hourly, necessitating recalculation and invoice generation for accuracy.

Currently, I enlist the help of a freelance CPA during tax season; however, I’m exploring the option of outsourcing my Bookkeeping and payroll functions to a dedicated bookkeeping service. This shift could potentially alleviate some of my workload, but it raises several questions.

If you’re in a similar position and considering whether to outsource your financial tasks, here are some insights to ponder:

What to Look For When Outsourcing Bookkeeping

1. Expertise and Specialization: Seek out companies that specialize in bookkeeping and payroll services, particularly those experienced in working with small businesses. They will have a better understanding of your specific needs and challenges.

2. Comprehensive Services: Look for firms that offer a wide range of services beyond just bookkeeping and payroll. They should be able to assist with financial reporting, tax preparation, and advice on financial strategy. This could save you from needing multiple vendors.

3. Transparent Pricing: Since the average cost in my area hovers around $2,000 per month, it’s important to understand exactly what you’re paying for. Make sure to clarify the scope of services included and inquire about any additional fees.

4. Technology and Tools: Inquire about the software and systems they use. Ideally, they should leverage tools that integrate seamlessly with your existing systems, ensuring a smoother transition and ongoing collaboration.

5. Reputation and Reviews: Research the company’s reputation through testimonials and reviews from other small business owners. Personal recommendations can also be invaluable in finding a reliable partner.

Is It Worth the Investment?

Making the decision to outsource bookkeeping and payroll is a significant one and ultimately depends on your business’s unique circumstances. While the initial cost may seem hefty, consider the long-term benefits:

• Time Savings: Freeing up those two days every month can enable you to focus on