Many factors impact the cost of outsourcing bookkeeping tasks, but the range starts at a few hundred dollars and runs up to a few thousand dollars per month depending on the size of your business and the complexity of your needs. While this may not sound cost-effective, it can be when compared to the salary of an experienced in-house bookkeeper. Typically, outsourcing your bookkeeping can save your company between 40% and 60% overall, and business owners enjoy numerous benefits when working with outsourced financial experts that they don’t usually get with in-house bookkeepers.

Benefits of Outsourced Bookkeeping Services

When contemplating whether to use in-house bookkeeping personnel versus outsourcing your bookkeeping needs, consider some of the many benefits you get with outsourced accounting services. One of the top reasons that start-ups, nonprofits and for-profit business owners choose to outsource their accounting and bookkeeping tasks is because it provides a cost-effective solution without compromising the quality of service. Basically, you pay for a professional team of bookkeeping and accounting experts while maintaining a reasonable budget. Other benefits of outsourced bookkeeping services are:

  • Allowing you to focus on other aspects of running your business
  • Providing you with relevant financial expertise
  • Recording accounts receivable and accounts payable to effectively track cash flow
  • Ensuring your company complies with state and federal finance regulations
  • Maintaining financial reports in an easy-to-understand format
  • Driving your company’s long-term growth and financial health
  • Offering the flexibility of in-house, outsourced, short-term or long-term solutions

Outsourced Accounting Services for Start-Ups

Start-ups and small businesses especially benefit from outsourced accounting services because they often don’t need a full-time in-house bookkeeper. Required bookkeeping services for small businesses are usually limited because there are fewer accounting tasks needed to keep track of their finances.

Fundamental bookkeeping tasks generally only require a few hours each month to complete, so an outsourced part-time bookkeeper is an ideal way to save money on your payroll expenses while still ensuring your small business complies with all state and federal tax regulations.

Early on, your company may only need very basic bookkeeping assistance to ensure your bills get paid, invoices have been collected and all transactions are being accurately recorded. As your start-up or small business grows, a professional outsourced accounting firm grows with you. Your company will eventually need more advanced accounting methods with more emphasis on timely, accurate financial reports to make important business decisions and generate the revenue required for continued growth.

Outsourced Bookkeeping Service for Nonprofits

Nonprofit businesses also benefit from outsourced accounting services because they still have expenses and funds to track and various bookkeeping tasks required to ensure they meet their nonprofits’ financial obligations while providing the services desired. Outsourcing with accounting professionals who understand the nuances and complexities of nonprofit bookkeeping and accounting benefit from extensive financial experience without the higher cost of hiring a staff accountant.

Crucial bookkeeping tasks for nonprofits include preparing required financial reports, such as the statement of financial position, statement of activities, and statement of cash flows. Outsourced nonprofit accounting experts can also help locate a qualified CPA firm to act as an independent auditor for accounting reviews and audits required by the government and preparing the Form 990. Flexible outsourced bookkeeping services scale with a nonprofit to tailor necessary tasks, so they can handle everything from a few specific bookkeeping tasks to managing all the nonprofit’s financial recordkeeping needs.

Bookkeeping Services for For-Profit Businesses

Larger for-profit business owners may require more in-depth, full-service bookkeeping assistance. Like small businesses’ bookkeeping and accounting services, larger companies also have basic bookkeeping needs. However, they also benefit from financial strategy services to help improve the company’s efficiency and increase its profits. Critical bookkeeping tasks for-profit businesses need handled accurately include:

  • Maintaining financial records and statements to comply with bookkeeping best practices
  • Preparing balance sheets and income statements that accurately demonstrate financial condition and profit and loss, respectively
  • Managing and reconciling bank and credit card accounts
  • Identifying monthly financial reporting and analysis to promote company growth
  • Maintaining accounts to ensure preparation for tax season and financial audits

Experienced accounting professionals can also help your for-profit business stop wasting revenue on fees on overdrafts and late payments because bookkeeping tasks are being performed accurately and on time. They can also help reduce expenses on necessities by spotting things your company may be overpaying for.

Adding CFO Solutions for Small or Large Businesses

Businesses also benefit from interim CFO services if they don’t have an in-house chief financial officer. These services can be combined with outsourced accounting or provided as a stand-alone service. Small businesses often don’t have the resources to hire a full-time CFO, and their business can suffer for having an incomplete finance team.

CFOs monitor the financial health of your company, prepare public financial disclosures and guide your company at critical moments. They help with budgeting, cash flow analysis, short-term and long-term forecasting, mergers and acquisitions, raising capital and preparing formal financial statements for investors. Part-time interim CFO solutions provide you with access to all the financial expertise you need, but only when you need it, making it more cost-effective.

Factors Affecting Outsourced Bookkeeping Service Cost

Once you’ve weighed the many benefits, compare the actual cost of outsourced bookkeeping services. Some factors that can impact your monthly cost include your company’s overall revenue and industry, number of transactions each month, accounting method used, number of employees and desired services.

Accounting services aren’t a one-size-fits-all package. The most cost-effective pricing greatly depends on what the company needs compared to what its accounting partner can provide. Common tasks you may want to outsource with a full-time or part-time bookkeeper include:

  • Accounts payable
  • Accounts receivable
  • Invoicing for sales and/or services
  • Financial analysis
  • Budgeting and forecasting
  • Tax season preparation
  • Payroll processing

Average Costs for Outsourcing Bookkeeping Service

The average salary for a full-charge in-house bookkeeper or accountant can range from $35,000 to $55,000 per year. Besides payroll, you’ll likely have the added expense of benefits and a certain amount of overhead for things like office space and equipment. The overall cost for an in-house accounting staff member can be even higher depending on where your business is located due to the high cost of living in areas like Los Angeles and New York.

Outsourcing your bookkeeping needs has an average price ranging from $500 to $2,500 per month for small businesses. The actual cost depends greatly on the number of transactions each month and the complexity of services required. Costs for larger companies with more complex needs will likely run a bit higher, ranging between $2,500 and $5,000 per month. However, you eliminate equal or higher payroll expenses, and you don’t have to worry about benefit or retirement packages or other related expenditures.

Outsource with the Financial Experts at Navitance

Navitance is a team of financial professionals with decades of experience in all types of businesses and organizations across sectors. Our specialized financial services fulfill the bookkeeping and accounting needs that in-house resources can’t provide. When you choose our virtual bookkeeping and financial services, including part-time CFO services, you can focus on strategic issues and growing your company instead of routine financial matters.

We offer comprehensive financial management solutions for businesses of all sizes around the nation, so whether you own a local start-up or well-established company, run a nonprofit in the next state or operate a for-profit business across the country, Navitance’s bookkeeping and financial experts can support you and your company in reaching all your financial goals. Contact us at 978-809-3282 to learn more about all our virtual outsourced services, or request a consultation today.