All You Need to Know About Outsourced Accounting Services

Not every business owner has the time and energy to manage every aspect of a business. It’s understandable if you are not able to handle all of the responsibilities of running a business. In such cases, outsourced services have become a more common solution for small businesses. 

This article will introduce you to outsourced accounting services, one of the most popular types of outsourced services, and help you decide whether your business needs to use outsourced accounting services or not. 

What are outsourced accounting services?

Outsourced accounting services are a third party that provides a full accounting department experience for small businesses. 

An outsourced accounting service handles day-to-day transactions, accounts payable, accounts receivable, financial statements, taxes, payroll, financial reports, and many other accounting tasks like a regular accounting department. 

Most outsourced accounting services provide a wide selection of packages; you can decide whether you also need a bookkeeper or an auditor. To remain competitive in the market, outsourced accounting service providers must constantly enhance their abilities and certifications. You can rest assured that your books are handled well by finance professionals. 

However, keep in mind that even if you hire an experienced and qualified accountant, you’ll still need to be involved in authorizing invoices, making payments, evaluating timesheets, etc.

The benefits of outsourced accounting services

Cost-saving

Hiring an outsourced accounting service is often cheaper and more cost-effective than hiring in-house staff to handle the finance function. 

By outsourcing, you can save your money on costs that hiring an employee would generate, such as paid leaves, health insurance, retirement, vacation, bonuses, and sick days. You just pay for what you require. 

Furthermore, accounting and bookkeeping services are charged on an hourly basis. It means that you can increase or decrease the number of hours without interruption.

Time-saving 

As your company expands, you’ll realize yourself focusing more on the business’s core value rather than handling administrative tasks. 

As a result, using outsourced accounting services allows you to concentrate your attention, energy, and resources on developing a business strategy. This will then help you increase the business revenue and enhance the relationship with your customers. 

Reduced hiring processes

The hiring process requires many resources. For example, it takes time to develop a recruitment policy, interview, and expenses for onboarding and training new employees. This process usually costs your business a significant amount of time and money and distracts you from other important tasks. 

Outsourced accounting services can help you eliminate hiring and training costs as the service providers already did it for you. All you need to do is choose the most appropriate package for your business, sign the contract, and pay for the plan. 

Accounting scaling made simple

Outsourced accounting service providers can expand their services dramatically in order to compete with their competitors. 

In particular, if your bookkeeping and accounting activities require more than an accountant to handle, you can easily demand more staff from the service agent. 

Automation technologies

Most outsourced accounting services have adopted accounting automation technologies to save time. It also reduces human errors and helps business owners eliminate hazards. 

Moreover, automation technologies will lower the likelihood of internal fraud. You’ll have multiple pairs of eyes on your transaction processing and reports, which provides increased internal controls. Having a dedicated team with expertise in accounting best practices will be far more likely to spot an anomaly than one person who’s probably overburdened and overloaded with work.

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When should you consider using outsourced account services?

Outsourced accounting services are most effective when:

  • A small company doesn’t need a full-time accountant, but it demands someone with higher accounting knowledge and skills than a regular office staff or secretary.
  • A business that can’t afford to hire a full-time accountant with the necessary skills.
  • Temporary services are required, such as extra assistance with end-of-year reports or when a full-time worker is on maternity leave, sick leave, etc.

The bottom line

Choosing outsourced accounting services is not just about handling your accounting activities. It also helps you drive profits, improve cash flow, and grow your business in the long term. You can always discuss with the service provider to design a package that suits your business needs and budget, brings you the peace of mind, efficiency, and actionable financial intelligence you need to succeed. 

About Shoeboxed

Shoeboxed is a receipt management application that turns your receipts and business documents into a digital format in just one click by taking a picture straight from your smartphone or scanning a pdf. It automatically extracts, categorizes, and human-verifies important data from your receipts so that you can go over and check your records anytime with ease. Shoeboxed ensures you will always have your receipts securely stored and ready for tax purposes.

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6 (Truly Amazing) Tools to Help Grow Your Small Business

Business owners are constantly bombarded with online tools and services that claim to boost productivity and help manage the growth of their business, many of which fail to deliver their promises. This is a list of tools that do deliver, and truly help small businesses get to that next level.

Business owners are constantly bombarded with online tools and services that claim to boost productivity and help manage the growth of their business. In fact, a simple Google search for “online business tools” gives you close to 700 million results – quite the marketplace to choose from. 

But how often do those tools actually help a business grow? And how often do business owners find themselves signing up for those tools, only to never use them? Probably more often than not. Which is why Shoeboxed did some investigating and curated an eclectic list of helpful, wide-ranging tools for growing small businesses.

Grasshopper

Phone System Automation

1Grasshopper is perfect for businesses looking for a full-service virtual phone system. Their services include customizable toll free 1-800 or local phone numbers, main greeting messages (with the option to include information like hours and address, among other customizations), departmental and employee extension numbers, voicemail to email transcriptions, and more. If you have a sales or support team, or just simply want to automate your business’ main line to make it easier to communicate with your customers, Grasshopper has you covered. Pricing starts at $12/month.

Plus: Grasshopper has a free app that turns your smartphone into a business line, allowing business owners and entrepreneurs stay professional even when they’re not in the office.

Bookly

Online Bookkeeping

Bookly.co logoIf you’re looking for a cheaper way to outsource a  bookkeeper, Bookly is the way to go. Their software automates dreaded bookkeeping chores by reconciling transactions with your connected bank and credit card accounts. Users can also create customized reports and compare balance and transactions trends in real-time. Additional features include invoice delivery and multiple user account collaboration. Pricing starts at $99/month.

Plus: In addition to the software, Bookly provides users with a dedicated bookkeeper who can look over your data and make sure that finances stay up to date.

Upwork

Project Outsourcing

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Need someone to rebuild your website but have zero-to-little design or programming experience? Want to increase traffic to your blog or social media, but don’t have enough time to write the content? Or do you simply need professional marketing advice and have no idea who to reach out to? Whatever your business needs, Upwork helps you find freelance talent to get the job done. Quality work resonates with existing and potential customers, so the next time you’re contemplating whether or not to outsource the job – consider Upwork. There is no plan to sign up – all you pay for is the work done by the freelancer.

Plus: Upwork allows you to customize the talent you are looking for, including filters like location, specific skill-set, experience level, and more.

Insureon

Online Insurance Agency

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If you think it’s easy to hunt down cheap, reliable, and quality insurance for your business, then you’ve obviously never run a business before. But that hunt is exactly what Insureon does. Insureon is an online agency dedicated to helping small businesses find the best insurance protection. All you have to do is fill out a quick online application, and Insureon does the rest – they calculate your risk, leverage relationships with top-tier insurance companies, then email you the best quote on the market, including coverage and cost options. Quotes are free.

Plus: Insureon matches you with a specialized agent experienced in your specific industry, and work with you to identify the unique challenges and insurance types of your business.

OutboundEngine

Marketing Automation

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If you are a small business owner who absolutely dreads the marketing side of things, OutboundEngine will be your hero. They’ll help you run fully-automated marketing campaigns, highly-targeted to your specific audience. Services include professional email marketing campaigns, automated social media updates, lead-generating referral programs and custom-tailored content writing. It’s like having an entire marketing department but at the fraction of the cost. Pricing starts at $179/month.

Plus: Everything is personalized, so the pros working on your campaign dive deep into your market and industry before testing anything.

Shoeboxed

Receipt and Expense Management

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Keeping track of receipts for bookkeeping and tax purposes is an exhaustive, daunting task. But for business and financial reasons it’s a highly scrutinized part of running a business — all business owners have to do it. The problem is, business owners absolutely hate doing it! Cue Shoeboxed. Shoeboxed scans, organizes and categorizes receipts and other business documents so that all of your important paperwork is fully searchable and accessible in the cloud. There is a free DIY plan and premium plans start at $9.99/month.

Plus: All receipt images are IRS-accepted, with vendor name, total amount, date of purchase and payment type automatically extracted once its submitted to Shoeboxed.

This list is not exhaustive, but we hope it provides a holistic approach to the types of useful services and tools that every small business owner needs as their business grows.

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