Business owners today are getting busier, and they have started offloading some of their day-to-day responsibilities. Outsourcing a variety of jobs has been on the rise for the past few years. The market size for global outsourcing reached $92.5 billion before the pandemic. By devoting more valuable time to other critical activities, they can grow their business much faster.
One such business activity that you as a small business can outsource is bookkeeping services. However, before you go ahead and finalize someone for the job, you should have clarity and hence should have answers to the below-mentioned questions:
1.What is better – a flat fee or hourly wages?
It would be best if you evaluated which option will be cost-effective for you. With a flat fee, you have an advantage – you know how much funds you need to have at the end of the month to pay for bookkeeping. On the other hand, hourly wages are helpful if your monthly transactions vary a lot. When transactions are low, you will save on those months with hourly wages. Weigh the pros and cons of both the options and decide accordingly.
2. Is the agency able to share ideas?
The agency to whom you want to outsource your bookkeeping work should have an open and pleasing personality. They should be ready to share their experience and help you grow your business. They have a mindset of an entrepreneur and work accordingly. The agency should be involved with end-to-end accounting procedures and should share ideas as and when required. Do check if they are proactive in such matters? Are they willing to discuss the ideas and open to critical feedback?
3. Is the process paperless?
You may still be doing your bookkeeping work on paper. But once you decide to outsource, you have to ensure your process becomes paperless. With the changing times, it is necessary to update all your procedures accordingly. All your bookkeeping-related work should be on the Cloud. It will lead to faster turnover time, which means you can close deals with your client faster.
4. How is the communication process?
Not only verbal communication, but you should evaluate their written communication. You can look at some of the past emails and check whether or not the message is being conveyed clearly through the mail. If you see issues, you should not be taking such a person into your team. A decimal here and there can cause your thousand dollars. So you have to look for someone who may not be perfect but close to perfect in bookkeeping work. Don’t choose someone just because they are less expensive. Get the best one for your business.
Once you have figured out the answers to these questions, you can start looking to outsource your bookkeeping work. With clear explanations, the outsourcing process will become easy for you. The answers to these questions will help you decide whether the agency is the right fit for your business or not. It will also help you evaluate what your expectations from the agency are.
If you are starting or managing a small business, you should consider outsourcing your Bookkeeping services. Smart Business Consultants is a new upcoming Accounting Services provider in the USA that provides bookkeeping, payroll, and CFO/Controller/CPA services for small businesses and start-ups all over the States. By helping clients simplify their accounting requirements, they allow them to focus on the crucial activities of the business, thus helping to increase profits. The company can be trusted to handle any business challenges irrespective of whatever industry you are in.