Bookkeeping Outsourcing Tips and Tricks For Small Businesses

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Many people think that bookkeeping work is very simple and can be done by an untrained fellow. It does not only entail recording financial transactions but also doing it accurately. There is no doubt that a trained bookkeeper can keep financial records better than a layman. This is why bookkeeping outsourcing is very rampant in the entire world today. Small business owners have realized that they do not have to keep their books. They could instead outsource their books to a third party who is completely trained, experienced and independent.

A third party in this case can be any bookkeeper who works autonomously. They can be a freelancer or registered company that does bookkeeping. For your own good you should hire a registered bookkeeper. They understand the terms used in their career better than you do. Not only do they understand the terms, but also principles and procedures when entering data into journals. Bookkeeping outsourcing will expose you to experts who will do many professional activities for you.

The company that will accept your bookkeeping outsourcing request should be able to sort out all transactions into either income or expenditure. They are in a better position to know which assets are deductible and which ones are not. Also they should be knowledgeable in other areas of expenditure such as payroll and tax returns. If an outsourced bookkeeper can use software to perform your work, they will be more beneficial to you. Software assures accurate results as long as it is used according to the manufacturer’s instructions. Many organizations that accept bookkeeping outsourcing use software to satisfy their customers.

They keep books either in a single-entry or double-entry method. Single entry method is very straightforward and is easily understood by people who lack bookkeeping background. The double entry method allows the bookkeeper to separate liabilities and assets. Liabilities are also called payables and they represent the amount your business owes other entities. Assets are also called receivables or income. A bookkeeping outsourcing service provider should also know how to record or account for assets that have become non-collectable (bad debts) and written off.

They should as well know how to maintain a record of each category for payables and receivables. For instance, invoices billed to your clients should be filed in a numerical order so that the most recent transactions appear on the top. Invoices are certainly receivables. Unpaid bills or payables should be filed in a folder such that the supplier names are arranged in an alphabetical order. If there is a supplier who extends a discount to you, the company offering bookkeeping outsourcing service to you should be able to reflect this in its work. All unpaid supplier bills should be organized in order, by date of expiry.

Paid bills or expenses should also be filled by supplier name in the alphabetical order and put in one folder. Banks statements should be filed according to the date they were processed, placing the most recent on top. Credit card statements should be placed in this folder as well. Finally, chosen bookkeeping outsourcing professional should be able to record petty cash expenses. Each expense should be supported by a receipt. All receipts can be arranged inside an envelope. This envelope should be marked by month, such as January, to show when the receipts inside it were generated.

Accurate Bookkeeping Services improves the ability of a firm to focus on business growth while simultaneously curtailing risks and costs. There are many Online Bookkeeping Outsourcing Firms that work for small and medium businesses worldwide.