Outsourcing services is becoming a standard business practice. There are many aspects of your operation you can entrust to a third-party. One of the most common services outsourced is bookkeeping and accounting.
For smaller business operations, it’s more practical to hire a bookkeeper or accountant only when necessary. Also, a third-party firm has the expertise, experience, and advanced technology needed to get the job done efficiently.
But despite these benefits, you may still be wary of considering outsourcing bookkeeping services. Yes, being cautious makes sense because you are giving a stranger access to your financial information.
That’s why we would like to make recommendations on how to make sure that outsourcing becomes a successful endeavor.
#1 Know your business needs and determine if outsourcing is the right fit
Bookkeeping is only one aspect related to accounting. As a whole, accounting refers to several functions; hence it may not be necessary to outsource all tasks.
The size of your operation, as well as the extent of outside assistance you need, is an excellent starting point to identify how you want to outsource with a third-party accounting firm.
It’s also critical to outline your long-term and short-term needs so that you can prioritize which tasks would benefit more from being outsourced.
#2 Have clear expectations about outsourcing
You decide to outsource mainly because you want to improve current practices. As such, your goals and expectations should be specific and clearly communicated.
The outsourced accounting firm should know with certainty, what you want and hope to achieve by hiring their services. By having a solid scope and outline, you’re also helping the firm succeed in its effort to provide you with the best service possible.
#3 Always prioritize expertise over cost savings
After you’ve identified your company’s needs and outlined your expectations, the next step is to choose the right firm that ticks all the boxes. Not every firm is created equal; therefore, you’ll need to compare a variety of factors. How much experience does the firm have?
Do they specialize in a specific business sector? Do they use innovative technology and tools for convenience and efficiency? Quality accounting service is worth paying for. That’s why you should choose expertise; expertise will lead seamlessly to business cost savings every time.
#4 High level of security
Financial data is sensitive and proprietary. When entrusting your business information to a third-party, you need to scrutinize security and privacy protocols.
You need to check if the firm is compliant with all regulations. Be clear about the level of security you expect, and ask the firm how they intend to meet these expectations.
#5 Effective communication
Anytime you’re dealing with an outsourced service, you’ll need to communicate well. Even if you find the best and most reliable bookkeeping service, it will be all for naught if you can’t maintain good communication.
As much as possible, find efficient channels that will allow you to keep in touch with the firm by regularly scheduling meetings to touch-base on relevant issues. However, you also need to remain sensitive to cultural differences and ensure that you maintain professional decorum at all times.