How To Outsource Bookkeeping for Your Small Business

Small business owners often struggle between managing day-to-day operations and keeping track of their finances. The benefits of hiring a bookkeeper illustrate why this split focus is a problem. When you outsource bookkeeping, you get a dedicated professional who can help you make sense of your financials so you can confidently run your business. This article will walk you through how to outsource bookkeeping for your small business and what to expect along the way to help you get started.   

Haven's accounting services for small businesses can help you achieve your goals by providing expert bookkeeping support tailored to your unique needs.

Benefits of Outsourcing Bookkeeping for Small Businesses

You may have considered having an in-house bookkeeper or outsourcing your accounting work as a business owner. More than one-third of businesses outsource their accounting work. Managing all accounting operations in-house isn't ideal for cost efficiency. 

1. You Get Bookkeeping Solutions That Can Scale With Your Business

Your bookkeeping solution will need to scale as your startup grows and evolves. Because most outsourced bookkeeping teams have access to experts on multiple topics, they can easily accommodate your changing bookkeeping needs. 

Scaling Finance Support

At first, your startup may need someone to manage your accounting software and perform routine bookkeeping tasks. As your finances become more complex and you need extra support, many finance firms that offer outsourced bookkeeping also have the expertise to provide advanced accounting and CFO services and experience across different business verticals.

Growth and Bookkeeping Limitations

While a part-time or in-house bookkeeper may keenly understand your type of business, you may face hurdles as your business expands. A part-time bookkeeper may not have the skill set to accurately set up the bookkeeping systems required to support a new business area. You may have to hire another bookkeeper to cover the new aspects or find a different bookkeeper who can do both. 

2. You Get More Expertise for Your Money

Finding a high-quality bookkeeping expert in your business vertical can be challenging, and hiring a less experienced bookkeeper at an hourly rate is tempting to save money. Many businesses switched to outsourcing bookkeeping after missing out on opportunities because their part-time bookkeeper was unfamiliar with their industry’s requirements. 

When you work with an outsourced bookkeeping firm, you get the advice and oversight of their senior bookkeepers and experts in your vertical without the cost of hiring individually. 

3. You Get Full-time Bookkeeping Access

The time a part-time bookkeeper will dedicate to your account is set in their contract; outside of these hours, they likely have other clients. This can be a problem if your bookkeeper is unavailable when time-sensitive bookkeeping tasks (such as responding to customer requests or delivering up-to-date financial reports during a fundraising process) arise. You may end up waiting days for a response.

You can contact the team anytime during regular business hours when you work with an outsourced bookkeeping solution. Some solutions even offer extended hours to get answers to your questions, no matter the time.

Flexible Workload Capacity

In addition to having less restrictive contact hours, outsourced bookkeeping solutions can be more flexible about the amount of work required each month. As your transaction volume increases or business finances become more complex, the bookkeeping may become more than a part-time bookkeeper can tackle. Nevertheless, the work may not require a full-time or in-house bookkeeper. 

4. You Get Access to Better Bookkeeping Technology

One of the biggest challenges for any business is keeping up with the latest technology. As a business owner, you're already stretched thin, and the last thing you want to do is spend your time and money trying to figure out how to use or pick bookkeeping software. That's where an outsourced bookkeeping service can help.

Alternatively, if you work with an in-house or part-time bookkeeper, you must explore bookkeeping and accounting software independently. Whoever you hire will then use that software vs. coming to the table with their platform. 

Technology Guidance and Implementation

If you don’t already have software, a bookkeeping service has the expertise to help you find the right technology to save you time and money. As a full-service team, they have experience working with various platforms and will know which is best suited for you. 

5. You Get Better Equipped for Tax Season

Whether you work with a part-time bookkeeper or an outsourced accounting service, your bookkeeper will lay the groundwork for a smooth tax preparation and filing experience. Having a team of bookkeepers can help here. They’ve likely had extensive experience preparing business taxes and will have the bandwidth to organize your books. 

Tax-Ready Financial Records

Bookkeeping services will ensure that your expenses and transactions for the tax accountant to process are correctly:

• Categorized
• Documented
• Organized
• Readily available 

When your bookkeeping service delivers the tax packet, the accountant won’t need to waste time looking for missing financial information or sorting inaccuracies. You can be confident that you won’t leave money on the table.

6. Saves Operating Costs

Outsourcing helps you save costs on hiring full-time or part-time bookkeepers. In-house bookkeepers charge from 35,000$ to 55,000$ a year. You only pay for the accounting services you need when outsourcing the work. This helps your company save 40% to 60% on overall revenue.

Hiring an employee involves more costs than just payroll services. The other expenses include:

• Insurance
• Training
• Benefits
• Recruiting

Reduced Personnel Overhead

Someone in your business will have to devote time to training a bookkeeper. You will need a person to cover sick leave and public holidays for the bookkeeper. When total personnel costs are calculated, outsourcing bookkeeping is a cost-saving option. Instead of allocating funds towards bookkeeping, you can spend them on essential employees. 

For instance, if you own a car maintenance shop, hire more mechanics. This will decrease wait time and improve productivity.

Related Reading

• What Is Included in Bookkeeping Services
• Common Bookkeeping Mistakes
• Average Cost of Bookkeeping Services for Small Business
• Types of Bookkeeping Services
• Basic Bookkeeping for Small Business
  
• Benefits of Virtual Bookkeeping

5 Types of Outsourced Bookkeeping Services

1. Virtual Bookkeepers

Virtual bookkeepers work remotely, utilizing cloud-based tools such as QuickBooks Online, Xero, or NetSuite to manage your financial records. This arrangement is ideal for tech-savvy businesses looking to cut costs and streamline their accounting processes. Virtual bookkeepers typically offer predictable pricing and can seamlessly integrate into your existing workflows to provide real-time financial data. 

2. Part-Time Bookkeepers

Part-time bookkeepers offer flexible support by the hour or several days each month. They handle essential bookkeeping tasks like:

• Transaction recording
• Bank reconciliations
• Managing accounts payable and receivable

This option is perfect for small businesses that don’t require full-time bookkeeping but need consistent and accurate financial records.

3. Full-Service Accounting Firms

Full-service accounting firms provide comprehensive financial management, covering daily bookkeeping and extending to:

• Payroll
• Tax preparation
• Economic forecasting
• Compliance reporting

‍Haven is an example of a full-service firm that caters to startups and high-growth companies. 

4. Project-Based Bookkeeping Services

Project-based bookkeeping services are designed for businesses that need help with specific financial events, such as:

• Audits
• Year-end reporting
• Tax season

They are also helpful in transitioning between accounting systems or cleaning up historical financial data. This model allows companies to access expert bookkeeping assistance without committing to ongoing support. 

5. Industry-Specific Bookkeeping

Some bookkeeping providers specialize in specific industries, such as:

• Healthcare
• Real estate
• E-commerce

These firms understand the unique financial trends, reporting formats, and regulations that affect businesses in their niche. Their expertise allows them to offer tailored insights and maintain compliance more efficiently. Let your business take flight while Haven manages your financial runway.

Built by founders for founders, we handle everything from daily bookkeeping to complex tax filings, R&D credits that put cash back in your pocket, and fractional CFO services. 

Expert Support and Savings

Join 400+ startups who've saved millions in tax credits, countless hours of administrative work, and never missed a filing deadline—all while accessing 24/7 Slack support from CPAs who understand the unique challenges of growing businesses. 

Book a call today to learn how our dedicated team can help you focus on building rather than bookkeeping.

How To Choose the Right Outsourced Bookkeeping Provider

You will want to find a bookkeeper with experience working with businesses in your industry. They should understand the financial nuances of your industry and be familiar with any regulations that may affect your business.

Industry-Specific Experience Matters

For example, if you are a retail business, your bookkeeper should know how to manage sales tax and be comfortable working with point-of-sale systems. Ask the applicant about their experience with businesses like yours. Have they worked with companies that are about the same size and have the same number of employees?

This will help ensure they can hit the ground running and help your business avoid costly mistakes.  

Local or Virtual: What’s the Best Option for Your Business?  

Outsourced bookkeeping for small businesses can be done remotely. You may not need to find someone in your geographic area. Nevertheless, there are some advantages to hiring a local bookkeeper. For one, they will better understand local business laws and tax regulations that can affect your company.

Local Market Insight and Compliance

They can also provide financial guidance based on their knowledge of the local market and help you find ways to increase revenue. If you choose to go with a virtual bookkeeper, ensure they have experience working with businesses in your industry and understand any compliance regulations that apply to your company.  

Credentials and References Matter When Choosing a Bookkeeper  

You want to hire someone qualified to handle your business finances. Ask about their training and real-world experience. Do they have any type of certification? Two examples of bookkeeper certification include:

• The Certified Public Bookkeeper license, accredited by the National Association of Certified Public Bookkeepers 
• Certified Bookkeeper, accredited by the American Institute of Professional Bookkeepers. 

Importance of Due Diligence and Trust

Ask the applicant to provide professional references. This will help you gain insight into their work ethic and reliability. Remember, you must trust the person managing your business finances. They will have access to all financial records. Even the most experienced bookkeeper can mess up your records or embezzle money.  

Software Compatibility Is Key for Outsourced Bookkeeping for Small Businesses  

Before hiring an individual, ask what accounting software they use. If you already have a software package you prefer, will they use it? If not, will you have administrative rights to their software? You must maintain access to your financial information. All accounting files must remain clear and transparent for your protection.

Find a Bookkeeper With Tax Experience  

Over the life of your business, taxes can have a compounding effect on your income. Thus, you must decrease and align your tax burden with tax laws. This will help you reach financial goals quicker. Make sure that your bookkeeper is well-versed in all tax law changes. They should guide you in creating the best tax-efficient structure for your company.

Related Reading

• Bookkeeping vs. CPA
• Hiring a Bookkeeper for a Small Business
• Bookkeeping Best Practices
• Benefits of Virtual Bookkeeping
• Small Business Accounting Tips
• Outsource Bookkeeping for Small Business
• Bookkeeping Tasks

Steps To Successfully Outsource Your Bookkeeping

Identify Exactly What Bookkeeping Duties You Need Help With 

Outsourcing bookkeeping for small business purposes can be a game-changer. Before you start looking for a capable bookkeeping service or professional, it's essential to pinpoint the specific tasks you want to hand off. 

Are you seeking assistance with invoicing, accounts payable and receivable, bank reconciliations, or just keeping your financial records current?Knowing precisely what you need will help you find the right expert to manage those duties.  

Set Clear Expectations Before You Begin 

Once you know what bookkeeping tasks to outsource for your small business, establish a clear plan for how you want the process to work. For example, how often do you want updates from your outsourced bookkeeping team? What types of reports do you want to receive, and how often? 

Setting these guidelines before you hire anyone will help you get organized and ensure a smooth transition once you start working with your new team or individual.  

Find a Good Fit Based on Experience and Reliability 

When searching for a bookkeeping service, look for candidates with experience working with businesses like yours. For instance, if you’re a small business in the construction industry, find a bookkeeping service specializing in construction accounting. You’ll also want to consider their reliability and accuracy. 

Look for reviews and testimonials from past clients to gauge their attention to detail and customer service.

Factors That Make Up the Costs of Bookkeeping Outsourcing

Company Size and Stage Influence Bookkeeping Costs

The size and stage of your business impact how much you’ll pay to outsource bookkeeping. A small, early-stage business with simple financials will require less support than a growing company with:

• Multiple revenue streams
• Departments
• Locations

As your business scales, your bookkeeping needs become more involved, raising costs.

Monthly Transaction Volume Affects Pricing

The number of transactions processed each month, such as sales, expenses, transfers, and deposits, affects the time a bookkeeper needs to spend reconciling your accounts. A higher volume means more entries to categorize, match, and validate, which increases the cost.

Number of Employees Can Raise Fees

If your bookkeeper also supports payroll, the number of employees on your team will influence your pricing. Larger teams usually mean more:

• Payroll runs
• Benefits tracking
• Employee reimbursements to process

Payroll Processing Method Matters

How your payroll is handled, manually or through integrated software, can affect your bookkeeping fees. Manual processes usually require more hands-on time, while a streamlined, automated payroll system can help reduce effort and cost.

Expense and Payment Accounts Add Complexity

The number of credit cards, bank accounts, and bills you manage adds to bookkeeping complexity. Each account must be reconciled, and every bill must be logged, categorized, and monitored, primarily if multiple due dates or vendors exist.

Balance Sheet Accounts Require Reconciliation

Each balance sheet account (such as loans, prepayments, assets, or retained earnings) requires monthly reconciliation. More accounts mean more work and, therefore, higher fees.

Invoicing Requirements Impact Costs

If your outsourced bookkeeper manages customer invoicing, the volume and frequency of invoices can impact pricing. Businesses with recurring billing cycles or complex payment terms often require more detailed tracking and follow-up.

Internal Systems Can Help or Hinder Efficiency

How you’ve set up your internal policies, systems, and procedures—such as approval processes, accounting software integrations, and documentation standards—can either streamline or complicate outsourced bookkeeping. The more manual or fragmented the setup, the more time-consuming it is for your bookkeeper to manage.

Reporting Needs Affect Pricing

The level of financial reporting you require plays a role in bookkeeping fees. If you only need basic monthly reports, the workload is minimal. But if you need customized dashboards, investor updates, or multi-entity consolidation reports, that adds to the time and skill required, affecting the cost.

Book a Call to Learn More About our Accounting Services (Trusted by 400+ Startups)

When you outsource bookkeeping for a small business to Haven, you get a team that knows the startup world. We’re not just small business bookkeepers. We’re startup bookkeepers and fractional CFOs with firsthand experience in the trials and triumphs of early-stage companies. We understand your unique challenges and can help you overcome them with tailored financial strategies that evolve as your business grows.

Tax Credits That Put Money Back in Your Pocket

Startups often miss out on valuable tax credits that significantly improve their cash flow. Haven’s team of experts will help you identify and qualify for R&D tax credits and other incentives to help you fund your innovation and growth. We’ve helped over 400 startups save millions in tax credits, and we can do the same for you.

24/7 Support From Real People

When you outsource bookkeeping for a small business to Haven, you’ll get access to our dedicated team via Slack. We’re available around the clock to answer your questions and provide the financial support you need to make informed decisions. This is especially helpful for startups operating outside traditional business hours or having remote teams in different time zones.

Save Time and Reduce Stress

Outsourcing your bookkeeping to Haven allows you to focus on building your business instead of crunching numbers. We’ll handle everything from daily bookkeeping to complex tax filings so you never have to worry about missing a deadline or losing track of your financials. 

Related Reading

• Bookkeeping Services List
• Organizing Small Business Bookkeeping
• Best Accountant for Small Business
• Pros and Cons of Outsourcing Accounting Services
• Bookkeeping Services for Startups
• Bookkeeping Packages for Small Business
• Best Outsourced Bookkeeping Services
• Best Bookkeeping Services

‍

‍