We have earlier given a brief idea for choosing an ideal accountant for your small business, and we thought it would be best if we update you with a detailed article on the selection of an ideal bookkeeping service provider. This article is a guide which will help you to understand your requirement better and select not just the best but the right bookkeeping service provider that fit your business need.
Here are pointers to help you get a clear idea about your requirements –
- Number of Business Transactions per Month:
Your selection of outsourced bookkeeping service provider is highly dependent on the number of business transaction because it affects both the cost as well as the ability of your service provider to perform that particular volume of transaction. Different bookkeeping service providers have different capacities in this term, for example, few don’t take a client who has less transaction while a few service providers are not capable of taking clients with a high volume of transaction. This is to make sure they don’t overpromise and can provide you with an efficient service.
- Bookkeeping Tasks to be Performed Internally
Are you planning to outsource only a part of your bookkeeping task while you conduct the remaining in-house? If so, you need to consider this fact while searching for an ideal bookkeeping service provider. Most businesses outsource their overall bookkeeping processes as it reduces the headache of managing the full-time employees and controlling the quality of the bookkeeping process. But you can also outsource a part of bookkeeping process like – income & expenses tracking, accounts receivable, accounts payable, managing & tracking inventory, payroll processing, financial reporting and much more.
- Your Budget Set for Bookkeeping Function:
Hiring the right bookkeeping service provider does not mean compromising on your budget or the quality. Calculate an approximate amount that you can set aside for your bookkeeping process. For some business, this amount should be less than the cost of hiring in-house bookkeepers, and for some businesses, it should simply worth all headache of managing, and control required on the bookkeeping process.
- Bookkeeping Software you Use:
This factor is important as your bookkeeping service provider should be well equipped with this software. Service provider generally tends to provide suggestions on your existing as well as other reliable software that will suit your business need, and in case they seem fit they will suggest shifting to different software. Make sure your bookkeeping service provider is familiar with all popular bookkeeping software.
- Time you can dedicate on Bookkeeping:
There are various kinds of packages provided by different bookkeeping service providers, and each package is unique and meant for different businesses. Make sure you understand each package and how much time is required on a daily basis to perform your bookkeeping in a streamlined manner.
Now that we know what your requirement is, it is time to see if your bookkeeping service provider will fit your requirements.
- Service Offering:
Do your detailed research and check if the services they offer fits your business needs? Always consider the fact that your business might grow, and you might require more services in future and thus check on whether your service provider offers all these services.
- Your Industry:
It is beneficial if your bookkeeping service providers has prior experience in your industry. This eliminates the need to brief them about your needs which are industry-specific, rather you can focus only on your business need. You can hire someone that either has current clients or worked with clients of the same industry.
- Client Portfolio:
Research about your bookkeeping service provider’s clients, this will help you to understand the level of expertise your service provider has. Make sure the client list is high-grade in terms of both quantity and quality.
- Reports Structure:
You can always ask for a sample report to understand how they work and whether you can follow the same. You can always ask for a different reporting method or structure that is convenient for you.
The rate of satisfaction of the current clients helps a lot in understanding the quality of work delivered by any service providers. Finding online review and analysing a few reviews will give you a clear idea about its functioning.
- Confidentiality terms:
Financial information contains sensitive data, and if exposed to public can harm the company in various ways. It is important to make sure that the data you share with your service provider is in a secure manner, and you have a confidentiality agreement set in place.
Make sure you understand your requirement clearly and then match the same with an offering of different service provider and we are sure you will find the best bookkeeping service provider that is the perfect fit for your business.