How Does Outsourced Bookkeeping & Accounting Work, And How You Can Get Started
Publish Date: Oct 3, 2022
Accounting Blog

You’ve probably had an in-house bookkeeper and/or accountant for the past number of years because that’s what you thought your business needed. 

But the high price tag that often comes along with an in-house financial team is probably what led you here— ready to explore the world of outsourced bookkeeping and accounting. 

Outsourcing your bookkeeping and accounting is easier (and more cost-effective) than you think. 

You find a company that you trust, they create a custom proposal that reflects your business needs. Then they’ll set up your accounts on the cloud– so you both can access your financial information quickly and easily– and just like that, you’re live. 

Congrats, you now have the convenience and cost-saving benefit of having a virtual accounting and bookkeeping team on your side.

Interested in learning more about the nitty-gritty of how outsourcing your accounting and bookkeeping works, how it differs from an in-house team, and when it makes sense to take the leap? Then keep reading as we dive into all those topics and more!

Trust us when we say it’s not too good to be true. Not much of a reader? That’s okay! Contact us today to book your free consult, where we can further explore if outsourcing your business’s accounting and bookkeeping needs makes sense for you.

What Is An Outsourced Accountant And Bookkeeper?

As you’re probably aware, a bookkeeper keeps a financial record of all your business’s purchases and sales. Whereas an accountant reviews your business’s financial data– that was recorded by the bookkeeper– and uses it to provide financial insights and recommendations. 

An outsourced bookkeeper and accountant do essentially the same accounting functions, but instead of having someone in-house to conduct these tasks (and paying them a full-time salary, plus employee benefits), you work with an external company to perform the financial tasks your business needs.

How Does Outsourced Accounting And Bookkeeping Work?

It all starts with the onboarding process. This is similar to onboarding a new employee, but rest assured it is a much easier and smoother. 

As a company that specializes in outsourcing accounting needs, we are pros when it comes to the financial services onboarding process. We’ve done this once or twice, so know how to make this as pain-free and seamless as possible.

  • We start by doing a deep dive into your current processes and books. This will allow us to determine what services you need most and understand your business’s current financial process and setup. 
  • We’ll also request access to your records, accounting software, banking institutions, and CRA accounts. Having these handy before we start always makes this even smoother and faster
  • Next, if you aren’t already on cloud-based accounting software, we’ll transition you over. This makes our job much easier, plus allows you to access your financial information from anywhere. Yes, even from outer space! 
  • Once you’re all set up, we go live with this new system. This allows us to take those peaky bookkeeping and accounting tasks off your (and your employees’) plates!

How Does An Outsourced Accountant/Bookkeeper Differ From An In-House Accountant/Bookkeeper?

For the most part, there aren’t too many differences between having an in-house accounting team and hiring an outsourced accounting and bookkeeping firm. The day-to-day tasks that in-house and outsourced teams do are pretty similar, except outsourcing does usually come with a few additional cost-saving and time-saving benefits.

Benefits of Outsourcing Your Bookkeeping & Accounting with Rocket Accounting

  • You get to be completely hands-off besides providing some financial documentation when required. This can easily be done by admin staff, or we can automate this through software. 
  • You’ll receive Monthly Financial Reports straight to your inbox. We can also schedule monthly meetings to review numbers, so you can make important business decisions using this data. 
  • Your accounting team will be virtual so although you can’t just stroll down the hallway to ask us a question, we have a 24 business-hours response time to emails so you never have to wait too long to have your questions answered. 
  • We can provide training to your internal team on how to automate the day-to-day financial processes that we can’t take on (like invoicing and making payments) so it’s automated and easy to follow. 
  • You get one less person to manage. 
  • You don’t need to pay CPP, EI, benefits, etc.

Not familiar with all the benefits outsourcing your bookkeeping and accounting can offer? Read up on 5 Benefits of Outsourcing Your Accounting and Bookkeeping.

Benefits of Having An Internal Accountant Or Bookkeeper

  • You typically have more access to your bookkeeper or accounting team during working hours assuming they’re working in the same office as you.
  • You have the option of asking your bookkeeper to help with other admin tasks (although, we normally don’t recommend this as it’s normally not the most cost-efficient).

Let’s compare the cost breakdown of Internal vs Outsourced

Outsourced Accounting TeamIn-house Accounting team
Cost Range𛲇$21,600+𛲇$57,000 +
Job TrainingNone𛲇$14,250 * 3 months of training
Financial Reporting$0 *This is included with Rocket Accounting𛲇$3,500 *Tax filing fee from external CPA 
Key Tasks and ResponsibilitiesMonthly BookkeepingSales Tax Filing (GST/PST)Corporate Tax FilingMonthly BookkeepingSales Tax Filing (GST/PST)
HiringLess than one month for the onboarding process3-6 months for hiring, training, and onboarding
Experience and ExpertiseDesignated CPA10+ Years Varies WidelyEntry level 0- 3 Years

How Much Does It Cost?

On average, we find that our clients save about $39,000 a year when they transition from an in-house bookkeeper to our outsourced accounting team. 

For the most accurate quote based on your business needs, we suggest you contact us and discuss what options are available.

How Do You Know When To Outsource Your Accounting And Bookkeeping?

Although there are numerous advantages to outsourcing your bookkeeping and accounting needs, it isn’t the best option for all businesses. 

  • A company is trying to reduce costs and increase profits 
  • There is a high turnover for the bookkeeper position
  • The small to medium-sized business owner is unsure of the duties the bookkeeper is doing and what they are spending their time on 
  • A company has an outdated accounting system and is not using technology to streamline their accounting department (many bookkeeping tasks can now be automated, saving you even more time and $).
  • The owner needs access to their bookkeeper on demand throughout the workday
  • The company requires a large accounting department of 3+ staff

Note, if you are planning to grow to a point where in the future when you’ll need a bigger accounting department, we help with the transition. When we work with you, all of your accounting information, apps, and documents are stored on the cloud and belong to you— never us.

Simple Steps To Start Transitioning to Outsourced!

Moving your accounting department to a virtual outsourced team may not be quite as simple as counting to three, but it’s not rocket science either. It usually consists of four– pretty pain-free steps.

Step 1: Initial Consultation

We do a quick virtual meeting to better understand your business and goals.

Step 2: Proposal

We’ll create a customized proposal that is unique to you and your business needs.

Step 3: Onboarding

We’ll set up all your accounts on the cloud so we can both access what we need quickly and easily, plus answer all the questions you may have. If any training or documents are required, we’ll walk you through exactly what we, or you, need.

Step 4: Relax And Enjoy An Easier Way To Do Bookkeeping And Accounting!

We’ll prepare your accounting and give you updated financial statements to help you make the best business decisions.

Launch Your Accounting Into The Right Hands

Outsourcing your business’s bookkeeping, and accounting services are a lot less painless than you probably think! At Rocket Accounting, we’ve done this numerous times, so can walk you through the steps and make sure everyone is set up for success. We’re here to hold your hand every step of the way.

We cover most of the tasks your team currently does, but we usually cost way less and can provide more knowledge than having someone on your team. This is our bread and butter, so let us use our years of experience to make your life easier.

Get your free quote today, and see just how much money (and time) we can help you save!

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