Maintaining accurate accounts is an essential part of running any business successfully. From paying employee salaries to handling taxation and reporting the company’s financial performance, bookkeeping helps businesses maintain transparency with their stakeholders, set clear financial targets and budgets, ensure statutory compliance, and make better financial decisions for the future. To handle these tasks, businesses may hire internally, turn towards freelancers, or outsource the work to professional accounting and bookkeeping services.
Types of bookkeeping services
Bookkeeping services are generally of two types–in-house or outsourced.
In-house bookkeeping
Hiring internally helps companies keep track of their resources and limit data-sharing. Here, a bookkeeper or accountant works on-site full-time. That being said, these individuals may be at a higher risk of security breaches, fraud, hacks, or even manual errors.
Outsourced bookkeeping services
Many professional bookkeeping services offer accounting support to multiple companies at the same time. Their services typically have access to a wider range of tools and software, which helps streamline work and reduce the risk of errors. Some vendors may also offer these services virtually, making way for real-time updates and seamless decision-making.
Things to look for when hiring an accounting or bookkeeping service
With new services popping up every day, it can be challenging to find a bookkeeping service that is appropriate for one’s business. Thankfully, this process can be made easier by looking for certain qualities.
Industry experience
One of the most important factors to consider when selecting a bookkeeping service is their experience of working within a certain industry. While most accounting services take on clients from varying backgrounds, finding someone who is familiar with the rules, regulations, industrial jargon, and other internal workings related to the business can be beneficial.
Services offered
Just like every business has unique financial requirements, so does every vendor have a unique list of services offered. When choosing an accounting firm to work for one’s business, it is essential to consider the services offered. Typically, these services tend to go beyond basic bookkeeping and often include other services such as preparing financial statements, managing payroll, among others. Think about what one’s business truly needs, and proceed accordingly.
Reputation
No one wants to get stuck with a shoddy service provider, especially for something as integral as accounting. That is why businesses must do a deep dive to learn more about the bookkeeping firm’s reputation. This can be gauged through online reviews, testimonials, and even case studies. One can also reach out to other clients to learn more about their experiences working with the bookkeeping firm. It’s best to find a firm that has a history of reliability and professionalism.
Technology integration
Technology is continuously evolving, and it’s only fair that one’s business grows with it. To allow this to happen, businesses need to work with service providers who have room for technological integration and growth. This allows the introduction of automation into the system, helping streamline processes for one’s peace of mind.
Since much new software is now cloud-based, this also ensures that teams can access data in real-time from any part of the world, offering a lot more flexibility to one’s associates.
Communication
Communication styles differ greatly from one provider to another. It’s essential to partner with an accounting service whose communication style matches one’s business needs, allowing teams to work better together. Find a company that can promptly address (or at least respond to) one’s needs and requests, ensuring smooth workflow and collaboration.
Budget and growth
No business decision can be made without considering one’s budget. One must find an accounting service that best fits their needs without breaking the bank.
Business needs are also constantly changing, generally with a focus on growth and scaling. Any service provider one chooses should not only be cognizant of this fact but also have the ability to scale their services and plans as needs evolve. This can help ensure long-term commitment and reduce the hassle of looking for and orienting new service providers too often.
Location
This is an important point to consider for those looking to work in person with an accounting firm. To find local service providers, one can simply conduct a browser search with the terms “accounting firm near me,” and find relevant results. Alternatively, it may also be helpful to talk to loved ones and acquaintances in the area who may have signed up for such services in the past.
Data security
Accountants and bookkeepers deal with the company’s most essential data–their financial records. While general reports regarding expenditure are often made publicly available, a lot of the other data is sensitive and confidential. To avoid data leaks and breaches, businesses must also pay attention to the level of data security offered by their service provider. Look for a business that already offers features such as encryption and two-factor authentication. Additionally, their software and system processes must also receive regular updates and undergo audits to keep business data safe from hackers and leaks.
With these aspects in mind, one is now ready to find an accounting solution that works for them. Don’t be in a rush to pick the first result online, focus on research, speak to and get quotes from multiple service providers, and then take a call regarding what is best for the business.