What does an outsourced bookkeeper do?
At JRK Financial, we provide full-service bookkeeping services. So I thought I’d take some time to explain what that means and how it looks. For me and other bookkeepers the name says it all, however not everyone is a bookkeeper or a money person and we forget sometimes that not everyone sees things the way we do. Geesh.
So when we say outsourced, we mean that a company decides to hire an outside firm to handle the important routine tasks of managing the companies/organizations financial reports, statements and accounts. From paying the bills, balancing the checkbook, generating sales reports, processing payroll and on. An outside firm is dedicated to doing the same tasks over and over and over for many companies. So as you would expect the processes and tasks are done much faster than an in-house bookkeeper might perform. And I might say with better detail. I used to be an in-house bookkeeper and I think it’s a great job so I won’t say having an in-house bookkeeper is a bad idea, if you have the right person and it’s a pretty good gig. In today’s economy though it’s not easy finding the cash to pay for that right person and their salary requirements and so stake holders everywhere are now using brainstorming sessions to find creative ways to work with their cash flow. An in-house bookkeeper is going to most likely have responsibilities outside of handling your financials, like making the coffee each morning or running to Office Max and buying new pencils for the staff. An outsourced bookkeeper obviously doesn’t do any of those type of tasks and thusly is considerably more focused on your bank account or vendor list or even your credit card balance! Since it’s about your money, we think that’s a pretty good trade to consider.
An outsourced bookkeeper does the same tasks for multiple companies and has a perspective that often solves problems that a standalone bookkeeper might spend hours, days or weeks trying to solve. For example, when the IRS sends a letter about your 941 filing has a discrepancy and they are requesting an amendment, your in-house bookkeeper is most likely going to soil their pants. An outsourced bookkeeper has seen this before and has the IRS on speed dial. Move on.
Here is a simple chart that illustrates the basic routine tasks when implementing an outsourced bookkeeper into your company organizational chart:
An outsourced bookkeeper loves to work alone at their desk with music playing loudly. They are very systematic in their weekly routine and cherish their routine very much, it makes them so happy. They are ritualistic when it comes to balancing your checkbook. They have a procedure and a regular method for all they perform including playing their favorite music, like Iron Maiden when balancing the checkbook or Zac Brown when managing the Accounts Payables. They have playlists on Spotify labeled for specific tasks.They can do,this because they work alone and don’t really have to worry about bothering others.
An outsourced bookkeeper loves email and instant messaging. Why? Because they are multi taskers. They can hold a 3 way chat, while paying the bills and being on hold with the State Treasury office for 2 hours. An in-house bookkeeper has to walk across the office for questions about 20 times per day costing you about a $bajillion dollars per year in time spent socializing, fraternizing and making coffee.
An outsourced bookkeeper utilizes automation and latest technologies to process routine tasks.
An outsourced bookkeeper doesn’t lick stamps and envelopes when paying the bills, they use Bill.com to handle that. Your in-house bookkeeper has to run to the post office to buy stamps and then Office Max to buy more envelopes. And then Starbucks for that afternoon latte and maybe a quick stop at the gas station to fill up their gas tank. Wink Wink.
It may be obvious or it might not be as obvious as we think it is, but outsourcing you bookkeeper is a great idea.
However it’s not a great idea to outsource your bookkeeper if:
- It’s not a great idea to outsource your bookkeeper if your company is in constant cash flow crisis needing daily stakeholder intervention.
- It’s not a great idea to outsource your bookkeeper if your company has less than $200k in annual revenues.
- It’s not a great idea to outsource your bookkeeper if simply expect your bookkeeper to be your personal assistant
- It’s not a great idea to outsource your bookkeeper if you are heavily in debt.
It is a great idea to outsource your bookkeeper if:
- It is a great idea to outsource your bookkeeper if you want to focus more time on your business and less time on balancing your checkbook.
- It is a great idea to outsource your bookkeeper if you find that you prefer to have clean financial reports sent to your inbox on a consistent basis.
- It is a great idea to outsource your bookkeeper if you have lost confidence in our current bookkeeper.
So if you think it’s time to make a switch use our online form to calculate the costs to see how much does it cost to hire an outsourced bookkeeper.