The article discusses advantages of outsourcing bookkeeping services.
Accounting Outsourcing: Bookkeeping Services
Accounting functions are high in volume, highly transactional and repetitive. This usually takes up most of the time of in-house teams. Accounting is also highly technical which makes accounting related tasks the top outsourced function.
The Finance and Accounting Outsourcing market in the U.S. is estimated at US$18.3 Billion in the year 2021. The country currently accounts for a 45.7% share in the global market.
Business process outsourcing in Finance and Accounting industries enables delegation of data entry services.
Outsourced Accountants can provide data entry services such as efficient recording of financial transactions, payroll management, invoice and billing management, processing of incoming payments along with the issuing of necessary paperwork, payment posting, and managing and reconciling balance sheets and financial statements such as the reconciliation and preparation of budget reports and forecasts.
Bookeeping is one technical routine Accounting task that businesses commonly outsource.
“Bookkeepers are among the top jobs with the fastest growing demand, recording a 2.5x increase in job openings between 2021 and 2022.” – LinkedIn
According to LinkedIn, Bookkeepers are among the top jobs with the fastest growing demand, recording a 2.5x increase in job openings between 2021 and 2022.
Bookkeeping is the process of recording and organizing of day-to-day financial transactions of a business in a systematic and timely manner.
The U.S. federal government’s fiscal year runs from October 1 of one calendar year through September 30.
During this busy season of financial and tax reporting, businesses can outsource data entry tasks such as bookkeeping. Businesses can hire Bookkeepers to work for them part-time (seasonal), full-time, and adjust to the timezone required by the client. Outsourced Offshore Bookkeepers often work as part of a dedicated team for a client.
Business Process Outsourcing lets you work with Bookkeeping professionals that have the right technical expertise and experience in cash flow management.
Outsourced bookkeepers can provide cash flow management. They provide effective accounts payable data entry to make sure the payments owed by a company are paid properly and on time. Outsourced bookkeepers also review outstanding or pending payables for proper processing, documentation and timely payment. Outsourced Bookkeepers also makes sure payments owed to the business are properly included and recorded.
Generating financial reports requires a large amount of work generating financial reports requires a large amount of work.
Outsourced Bookkeepers provide basic financial reporting, financial statements, work comfortably with numbers, can adapt to a fast-paced work environment, have excellent accuracy, attention to detail, planning and organizational and communication skills.
Outsourced Bookkeepers are highly capable of generating financial reports and interpreting them in terms that can be understood by clients and customers easily. Reports are completed in Accounting software such as:
- Xero
- WorkflowMax
- MYOB
- Dynamics
- QuickBooks
- Zoho Books
Outsourcing bookkeeping lets businesses gain access to technology such as Accounting software, web applications and automation of key accounting and financial business processes such as centralized data syncing and reports generation.
Aside from maintaining accounting records, Bookkeepers are also responsible in managing and processing billing and invoice reports and also provide invoice and billing verification and management. Bookkeepers also conduct invoice checks and verifications, and make sure reports are free from errors.
Outsourced Bookkeepers also verify bank reconciliation ties with the General Ledger. Their tasks also include reconciling Accounts Receivable & Retainage Receivable, and other Receivables. They also reconcile Prepaid Accounts, Deposits, Inventory, Fixed Assets, and Investment. Aside from this they also reconcile Accounts Payable & Retainage Payable, and Credit Card Payable, and other assigned related roles.
Accounting Roles You Can Outsource
Connext provides the expertise and experience level to not simply complete low-level tasks but to play a large part in the expansion and improvement of your business. We provide the training and management required to deliver top-notch accounting and financial services while you free up both time and money that can be better utilized elsewhere.
Businesses looking to offshore Accounting functions can tap from a huge talent pool of:
Bookkeepers: Offshore Accountants can also provide data entry services such as efficient recording of financial transactions, payroll management, invoice and billing management, processing of incoming payments along with the issuing of necessary paperwork, payment posting, and managing and reconciling balance sheets and financial statements.
Accounting Associates: Accounting Associates ensure completion of Service and Compliance Tasks such as Accounts Payable Invoice and Accounts Receivable Billings, Bank Reconciliations, monthly and annual GET filing, payroll tax filing, weekly payroll and cash forecast and more.
Junior Accountants: Junior Accountants provide back-office support such as updating lists of requested information and supporting documents, update the Accountant Scorecard and deliverables status, prepare financial statements, reconcile Accounts Receivable & Retainage Receivable and other Balance Sheet Accounts Reconciliation, and more.
Senior Accountants: Senior Accountants oversee the finance department and provide assistance with external and internal audit examinations. They manage and supervise Junior Accountants in creating detailed financial reports and analyzing forecasts.
Controllers: Controllers verify bank reconciliation ties with the General Ledger. Their tasks also include reconciling Accounts Receivable & Retainage Receivable, and other Receivables. They also reconcile Prepaid Accounts, Deposits, Inventory, Fixed Assets, and Investment. Aside from this they also reconcile Accounts Payable & Retainage Payable, and Credit Card Payable, and other assigned related roles.
Dive deeper into efficient financial management with our blog post on why your business should outsource accounting and tax preparation services. Learn how this strategy complements your decision to outsource bookkeeping services.
Start building a scalable support team of Finance and Accounting experts. Learn more about Connext Global Solutions today.
References:
“Finance and Accounting Outsourcing World Market Report”. https://www.strategyr.com/market-report-finance-and-accounting-outsourcing-forecasts-global-industry-analysts-inc.asp. StrategyR. Accessed October 13, 2022.
“Budget of the U.S. Government”. https://www.usa.gov/budget. USA Gov. Accessed October 13, 2022.
“What is the difference between a Bookkeeper, Controller and CFO?” https://opuscg.com/what-is-the-difference-between-a-bookkeeper-controller-and-cfo/#:~:text=A%20controller%20will%20either%20perform,choose%20and%20maintain%20financial%20software. OPUS CG. Accessed October 13, 2022.
“Is There an Accounting Talent Shortage?: 10 Signs It’s Time for Your Firm To Implement New Operational Strategies in 2022”.https://www.superstaff.com/blog/10-facts-about-accounting-talent-shortage/. Superstaff. Published September 8, 2022. Accessed October 13, 2022.
Do I Need A Bookkeeper, BAS Agent Or Accountant? https://www.saige.com.au/business/accounting/do-i-need-a-bookkeeper-bas-agent-or-accountant/. Saige. Published January 19, 2021. Accessed October 13, 2022.
Greg Depersio, reviewed by Ebony Howard, fact checked by Suzanne Kvilhaug. “Bookkeeping Vs. Accounting: What’s The Difference?” https://www.investopedia.com/articles/professionals/091715/career-advice-accounting-vs-bookkeeping.asp. Investopedia. Updated October 08, 2022. Accessed October 13, 2022.
