Firstly, establish whether the outsourced CFO you’re interested in working with has a proven track record in your industry. An outsourced CFO that’s experienced in the nonprofit sector might not grasp the financial challenges that a fast-growing technology company deals with. When a business outsources its accounting, it essentially transfers responsibility for some or all of its accounting tasks to a third-party accounting firm.
Outsourced Bookkeeping
As the owner, you want to grow your business and focus on the vision of the company itself. That being said, the oversight and advanced reporting might make it worth the cost (and outsourcing definitely costs less than hiring a salaried controller). It will depend on your specific needs, but outsourcing could run in the ballpark of $2000–$3500 per month. Whether you’re filing solo or working with a CPA, we’ll do the books and work directly with a tax filing pro to get your taxes filed accurately and anxiety-free.
Once you’ve established what you want to outsource, the next next step is to identify who you’re going to outsource it to. If you’d accounting for startups the ultimate startup accounting guide like to outsource some or all of your accounting obligations, here’s how to get started. As well as helping you comply with all relevant laws, this ensures that you are fully prepared if your company gets audited. Get in touch with one of our experts and see how outsourcing can fit into your accounting strategy. You’ve scoured the internet for blogs about outsourcing and you’ve consumed enough pertinent information to make a well-thought-out decision.
Data security
However, if you can find accounting or bookkeeping services that can save you time, stress, and overall resources, it could be a perfect fit. The first question you have to ask yourself is whether outsourcing your accounting needs realistically works for your business. Hiring a large accounting firm to cover the full service of all accounts can take a considerable amount from your small company’s net profits. Outsourced, virtual bookkeeping can cost as little as $150 per month and as much as $900 (or more) per month. Some companies charge by the number of accounts you need them to manage, while other companies charge based on your company’s monthly expenses.
Equally, focus on finding an outsourced CFO that has significant experience navigating the challenges that are currently top of mind for your business. If your main financial goal is to sell your company, make sure you hire an outsourced CFO that has previously advised on a number of successful transactions. Working with an outsourced CFO offers business leaders the opportunity to access this financial expertise at a fraction of the cost of hiring a full-time CFO to work for their business.
Related reading
- Bookkeeper.com manages your accounts using QuickBooks Online (or QuickBooks Desktop, if you prefer).
- Making sense of your numbers can be time-consuming and frustrating, to say the least.
- These are all expenses that go into hiring an employee, and if you want to run accounting entirely in-house, it’s likely you’ll need more than one team member.
We can also help ensure that you are filing the right tax paperwork, including contractor paperwork. Almost all companies must pay taxes on their income, regardless of where they are headquartered. But preparing taxes and complying with regulations can be tricky, especially if your business has a complex corporate structure. Payroll management is all about making sure your employees are paid accurately and on time for their work.
Finding out later that you wrongly filed some form and now you unexpectedly owe thousands of dollars can be a real gut punch to an SMB, especially in today’s tough economy. Above all, find an outsourced CFO that you can build a long-term relationship with. An outsourced CFO should be a trusted strategic partner with whom you work intimately – not just another vendor. Listen to your intuition and find an outsourced CFO you know you can trust. Many businesses work with the vertical balance sheet an outsourced CFO on a short-term project basis, although longer-term, ongoing advisory relationships are also common.
Outsourced accounting: benefits, types, and getting started
An early and open discussion about this can keep you from being hit with unexpected costs down the line. These tools can be helpful for automatically importing transactions from your bank accounts and payment processors like Stripe. And they generally cost less than hiring expert bookkeepers and accountants. Reduce costs, manage taxes, administer benefits, and stay globally compliant when you consolidate payroll with Remote.
Typically, the lower your expenses (and the fewer your accounting needs), the less you’ll be charged. The virtual bookkeeping providers above might be our favorite—but if they don’t quite fit your needs, we understand completely. Here are three other online accounting service providers worth looking at.
At first, there may be a lot of work in building the financial infrastructure and accounting services. But after this initial set-up period, the relationship typically reverts to a stable monthly business cycle. LBMC is a Tennessee, Kentucky and Indiana CPA firm accounting effects dedicated to helping entrepreneurial businesses excel.
