Listen to this articleGone are the days when smaller companies resorted to hiring an in-house accountant. Today, small and mid-sized businesses are following the trend of switching to accounting and bookkeeping services.
Online accounting and bookkeeping services have their advantages. First, they reduce the cost of accounting operations. Moreover, they eliminate the time and resources spent on hiring and training employees.
As if this was not enough, the accounting firms also offer services of higher quality, which are more useful for businesses. However, this doesn’t mean that outsourcing accounting operations is rid of challenges.
One major challenge businesses face is finding the right online accounting service provider. Browsing through the extensive list of accounting firms present on the internet requires extensive knowledge and a professional approach.
This is why we decided to publish a guide on finding the best accounting and bookkeeping services. Use these tips and suggestions to choose the perfect service provider for your company.
What are Outsourced Accounting and Bookkeeping Services?
For the uninitiated, outsourced accounting and bookkeeping services mean delegating these operations to an accounting firm or service provider. Therefore, the business no longer maintains an in-house accounting department.
Instead, the service provider carries out these operations for the business and communicates online. Businesses can outsource to an accounting firm located in the USA or offshore to India, Philippines, or other countries.
Should You Outsource the Accounting and Bookkeeping?
Should a company outsource the accounting and bookkeeping operations, and why? The answer lies in its advantages.
1. Save on Expenses
Most businesses choose to outsource accounting operations to cut on the total expenses. Outsourced services cost less than hiring an in-house accountant. Moreover, better services, such as those provided by the top accounting firms, are meant to help the business reduce expenses.
The result is reduced total expenses and increased net profit. However, when the businesses outsource the accounting operations to virtual accountants, they save greatly on company expenses.
2. Delegate to Experts
Outsourcing doesn’t only mean reduced costs; it also means delegating to experts. The accounting firms have a team of certified accountants and experienced bookkeepers who are proficient in their domain. They have industry experts who help the firm provide high-grade services to the clients.
3. Save Time
How long does it take to get that accounting data entered into the software before you can conduct business analysis, research, or generate a report? The traditional way of accounting is slow and delays financial reporting, analysis, and filing of tax returns.
This also consumes more time and increases the cost per head spent on an employee. A business pays an employee for every second they spend working. Therefore, their time should be put to a better use.
Outsourcing addresses this problem. Now, the business pays only for the work done, and the changes are reflected instantly without having to wait for long.
4. Grow with Insights
A company must know where it is spending much, which products and services are bringing better results, and how to reduce total costs. Therefore, business analysis is important to track the cash flow and analyze business performance accurately.
Only then can the company come up with the right strategies and corrective measures to improve the performance. This is where the in-depth insights provided by the outsourced accounting services come in handy.
5. Revolutionize Operations
The outsourced accounting service providers are equipped with the latest financial technology. Therefore, businesses benefit from advanced software and tools to carry out accounting operations accurately.
This also saves time, provides powerful insights, and promotes business growth. In this way, outsourced accounting services revolutionize the way a company carries out accounting and bookkeeping.
6. Stay Compliant
Business finance have one crucial aspect – staying compliant with local, state, and federal regulations. However, different US states and localities have varying guidelines and tax rates. This makes it quite complicated and tedious to file accurate tax returns.
However, the outsourced accounting service providers have business tax experts who are proficient in domestic and international taxes. This ensures that businesses never have to deal with legal charges and penalties due to incompliance or violations of government guidelines.
7. Prepare for Audits
Do you have an accounting expert to help you prepare for the audits in the future? Or you’re planning to hire an audit and assurance service? However, that might require you to spend more.
Businesses are recommended to conduct internal audits to evaluate the correctness of the financial records. This helps them understand the current performance and ensure that the business is compliant with industry, government, and public standards.
Businesses need audit and assurance services to justify themselves before potential investors, creditors, shareholders, government, and clients.
Outsourced accounting services usually provide audit and assurance services in their package. This saves the companies from spending extra money or time on the same.
Before Browsing the Accounting and Bookkeeping Services
The prices and services offered depend on the firm in question and vary dramatically. Moreover, not all the websites and service providers are credible. It is also easy to fall prey to phishing, scams, cyber crimes, and fraud when browsing for the right service provider.
This is why a business must know how to find the right accounting and bookkeeping services provider. When you sign up with an accounting service provider, ensure they suit your business. If in case, you two cannot work for long, this will result in wasted time and money.
Tips on Choosing the Right Accounting and Bookkeeping Services
When browsing the various accounting service providers, use these tips to find the perfect partner.
1. Explore Services
Accounting firms offer diverse services, which vary in quality, features, technology, etc. Therefore, exploring different firms is the first step to finding the right partner for your accounting requirements.
Only then would you get a better overview of the services available in the market and how much they roughly cost. Moreover, this will also clarify the number of options you have.
2. Conduct Your Research
The next step is doing your homework on the accounting firms you can work with. Collect as much information on them as you can. Consult digital platforms, read the reviews, and get to know about their services and client retention rates.
The reviews on third-party websites, and not on the firm’s own website, will give you a real idea of the credibility of the service provider.
3. Trust the Credible Reviews
Satisfied clients should be your biggest hint for the right accounting and bookkeeping services. That can be figured out with the help of client reviews and testimonials. However, not all reviews are trustworthy.
Credible reviews have complete information on the customer or client, such as name, picture, and probably about their company or business. Therefore, separate the fake reviews from credible ones and trust the latter.
4. Prioritize Experience
Accounting firms with years of experience in the industry are more likely to have a professional approach, better service quality, and high client retention rates. Moreover, these established service providers offer superior services that are able to address complicated business situations and simplify client’s operations.
Therefore, check for how long the firm has been in the industry and what has been its growth trajectory. Lastly, take a look at its performance in terms of providing accounting services in the last few years.
5. Technology and Software
The accounting system, technology, and software the firm uses play a significant role in defining the service quality and client experience. Therefore, learn about what accounting software the firm uses and how they communicate updates to the clients.
If you prefer one accounting software over the rest, such as QuickBooks, Sage, Zoho, etc., you can look for the firm that utilizes that software.
6. Plans and Scalability
Outsourcing accounting and bookkeeping services brings one great benefit – freedom from rigid hiring or infrastructure. However, not all accounting firms are equally flexible about the plans they offer to their clients.
Therefore, when exploring the plans and prices, check how easily you can change the procedures per the business requirements. You can contact the service provider about it.
Accounting and Bookkeeping Services for Startups and Growing Businesses
The above guide shall help you find the perfect accounting firm to work with.
However, if you are looking for a firm with –
- High-Quality Services
- High Client Retention Rate
- Scalable Plans
- Affordable Prices
- Salient Track Record
- Latest Technology
- No Extra Charges,
Then you need to look no more.
Welcome to A2 Accountants. We are on a mission to bring the latest financial technology to small and growing businesses and help them flourish. We provide the highest-grade service in the area, take a client-centric approach to work, and only charge for what you need — no hidden charges.
Allow us to become a partner in your journey. Dial +1(800) 580-5375 now and connect with our advisor for a free consultation.