How Outsourced Bookkeeping Services Dallas TX Works
Trying to find the best bookkeeper? It is one of the hardest things a business owner has to do. You need to find someone you can count on for financial matters. The answer seems simple. You can benefit from outsourced bookkeeping services Dallas. Dallas is where every entrepreneur has an equal chance to run the business. They can find the best bookkeepers and accountants here.
So how do you find the best bookkeepers in Dallas? The competition is high. To find someone who will do a job well done can be hard.
There are different outsourcing models operating in the market. You can opt for a variety of models. Freelancers, project-based, or hiring outsourced bookkeepers are the main examples.
Many small businesses choose outsourced bookkeeping services for non-core functions. This includes accounting and bookkeeping. Your business’s current status and goals matter. According to your business need, you can hire bookkeeping services in town.
But before you do hire one, you need to understand how the outsourced bookkeeping services Dallas work.
What Is Outsourced Bookkeeping?
You may run a small business in Dallas on a limited budget. Then you can hire a firm or a person who has to take the financial duties. The hired staff works on a contract basis. The payment is either hourly, weekly, or monthly.
The outsourced bookkeeping services in Dallas will help you focus on all the business matters that may affect you financially. Usually, they are cheaper in cost as compared to the full-time hired employee.
When Should I Outsource My Bookkeeping?
There could be a number of reasons for you to hire a bookkeeper rather than keep doing your books yourself. Some of those reasons are:
- Consistent recordkeeping is invaluable for a growing business
- Doing your bookkeeping yourself takes up more of your time than you can afford to spend
- It is hard to keep your books updated
- It is making you miss your tax write-offs
- It is hard to keep track of accounts payable and receivable
- You are struggling to make your estimated tax payments
- It is a struggle to stay on top of your cash flow
Even if the above-mentioned reasons are not your concern, your business might have other areas that could be improved upon by hiring a bookkeeper. Only you can identify the need of your business and decide if you need to hire a bookkeeper, and it’s best if you do it sooner than later.
Types of Outsourced Bookkeeping Services
Outsourced bookkeeping services are of two types, depending on whether you want somebody handling your books online or you know somebody in your vicinity that can manage your books. The two types are:
A local bookkeeper can be a bookkeeping team or an individual that is based near your business. Hiring a local bookkeeper is the best option for you if:
- You prefer meeting the person managing your books face to face
- You prefer having a physical record of your business’ books rather than relying on online banking systems like Stripe
How Local Bookkeeping Works
There are further two types of local bookkeepers. You can either outsource your books to a local freelancer or a local firm.
These are individuals that can work one-on-one with you to get your books done. They might be available in-person as well as willing to work online, or even do both. Solo freelancers might have a variety of experience and skills.
Bookkeeping firms generally charge more than freelance bookkeepers, since they might also be able to provide a certain assurance that freelance bookkeepers might not be able to. When you have a firm working for you, you have a number of certified bookkeepers working for you. In case one might not be available, there will always be somebody available to look after your books, so there won’t be any service gap.
You should make the decision of choosing your bookkeeper after weighing in a number of factors. The number one priority should be security. Since freelance bookkeepers or firms are not your employees directly, you need to find the option that offers secure immediate access to your financial reports in an accounting software of your preference.
You should be able to trust the person handling your books, and all your financial information. You should be extremely cautious in matters of signing checks, handling investments, wire transfers, or making online payments, and make sure that you are the sole signing authority so that you have full control over your treasury functions.
Virtual bookkeeping is the modern way of handling your books in a paper-free method. It implies that an individual does your books for you online. Virtual bookkeepers are the best of both worlds, combining bookkeeping software with traditional bookkeeping. It is best suited for your business if:
- You are comfortable using online banking and the internet for your finances
- You prefer flat monthly rates rather than hourly billing
- You want access to your financials via your mobile
- You prefer talking to the person online rather than face to face
Hiring professional bookkeepers can save you your time and energy. Working with virtual bookkeepers comes with the added benefit of having your data stored securely in the cloud, and the ability to access it from anywhere, anytime.
How Virtual Bookkeeping Works
Virtual bookkeeping allows you to connect with real bookkeepers through secure online accounts. You no longer have to send your receipts manually and can access your expenses automatically via online banking.
Online bookkeeping services provide you with a year-end financial package that includes the financial statements you will need to file your business taxes, during tax season.
In case your business has outgrown these solutions, it is time you hire an in-house bookkeeper to extend your accounting department. If you can afford to hire an in-house bookkeeper, keeping in mind employee benefits and payroll taxes, it might be the best option if your business has advanced bookkeeping needs. If you need a bookkeeper only for forecasting or bank reconciliations, this might not be that good an idea.
If your business requires an in-house bookkeeper, but cannot afford to hire one, you should consider hiring a part-time bookkeeper and you can increase their hours as needed. You might also hire a part-time bookkeeper and assign them extra administrative tasks in order to create a full-time position for them.
Local vs. Virtual vs. In-House Bookkeeping
We have outlined the options available for outsourced bookkeeping for you to choose from.
|Bookkeeping solution||The best choice if.||Benefits|
|Local bookkeeper||The revenue for your business is less than $1 million and there are fewer than 5 employees
You want physical records of your finances
You prefer meeting your bookkeeper face to face
Your business is prepared to cover bills that might vary each month (due to hourly billing)
|Local bookkeepers are efficient with paper-based recording
Freelancers might show a little more flexibility with communicating online or visiting your business
|Virtual bookkeeper||Revenue for your business is less than $1 million and there are fewer than 5 employees
You prefer using online banking
You prefer paying a flat monthly fee rather than hourly bills
You require instant access to your financials remotely too
|You can run a paper-free office
You have the option for instant online communication
You get the software as well as individual bookkeepers to monitor your finances
You have a whole team to do your books and no concern of service gaps
|In-house bookkeeper||The revenue of your business is more than $1 million and has more than 30 employees||It is the most efficient way to do the books for an advanced business
The bookkeeper answers directly to you
You should choose the bookkeeping solution that best suits your business needs and can provide you with tax-ready books, accurate financial statements, and a secure place to store the business’ financial records and data.
Costs of Outsourced Bookkeeping
Bookkeeping needs and financial situations vary from business to business so it is impossible to provide a blanket number that outsourced bookkeepers might charge a business. It is safe to say that outsourced bookkeeping estimated costs around $500-$2000 per month. Here is a general idea of what outsourced bookkeeping costs a business:
|Bookkeeping service||Cost||Yearly Cost|
|$25-$40 per hour
Plus tax and benefits
|$52000-$83200 per year
Plus tax and benefits
|Outsourced bookkeeping service||$500-$2000 per month||$6000-$24000 per year|
The bookkeeping costs vary according to the needs of your business as well as on other things including:
- Whether the service is using humans, software or both
- The scale of your business (transactions and expenses)
- Whether you’re looking for accrual-basis bookkeeping or cash
- Number of financial accounts that need connecting
- Frequency of financial reports received
- Time and caliber of support provided
- The complexity of the financial situation
- Number of additional features (like inventory management)
As the complexity of your business needs increases, so do the bookkeeping costs, and so does the need to hire a good bookkeeper.
4 Reasons to Use Outsourced Bookkeeping Services Dallas
At the earliest stage for any business startup, the sense to minimize the direct expense is strong. You may even think that managing your own bookkeeping is a good option.
But with time, as your startup business grows, the need for updated books will remain high. So you have two options;
- Hire a part-time bookkeeper
- Outsource bookkeeping services
Both solutions are cost-effective. However outsourced bookkeeping services in Dallas offers multiple professionals at hand like bookkeepers, accountants, and CPAs, etc. their broad experience can help to solve any troubleshooting situation.
Some of the major reasons to choose outsourced bookkeeping services also include;
Make Your Business Scalable
When your business startup grows, so do your bookkeeping services should become more scalable. A service that adopts business size can handle multiple financial challenges.
At first, you may be alright using the practice management software for accountants, but with time you need to manage the bookkeeping tasks. The more complex the finances become, the extra support you will need.
The part-time bookkeeper understands your business needs but with limited time available it will increase the workload. So any financial delay otherwise may restrict any future strategy you may want to create.
Value for Money
A part-time bookkeeper cannot put up with the business verticals easily as compared to outsourced bookkeeping services. Surely, it’s a more tempting option to hire a less costly choice but it also limits the opportunities to fulfill the business requirements.
When working with the outsourced bookkeeping services you communicate with the experienced senior bookkeepers and financial experts without any extra cost. The team is at your disposal when you need them to handle the books.
For instance, your business might be facing an audit. In such a case you can take help from the CPAs or other tax experts thanks to the outsourced bookkeeping services. You do not need to hire a professional individual to handle the specific crisis.
Isn’t it what every entrepreneur needs? A handy team of financial experts available at their beck and call? In the hour of need, you need to text them or send an email. That’s all you need to do for an effective response.
Bookkeeping is time-sensitive. Bookkeeping services understand that sometimes urgency is required to handle the reports.
Instead of waiting for the response from the part-time bookkeeper until the next day, you can expect an immediate response from the outsourced bookkeeper. It saves time and effort on both sides. Business priorities are not forsaken only because the bookkeeper is unavailable.
You can contact the team and anyone from the outsourced bookkeeping services can reach out to you to handle the business during regular hours.
Tax Preparation is Handy
Tax season arrives too soon for those who do not have their financial records maintained from the very beginning.
A team of bookkeepers is available at regular business hours when managing the financial books, they ensure that it helps in the preparation of the tax too. Tax preparation is critical for every startup. For the first-timers, there’s a lot of confusion so the tax experts can prepare the books ahead of time.
A remote outsourced bookkeeping service ensures that expenses are categorized properly and that documentation is readily available so that at the time of tax filing there’s no confusion or mess. The use of online software also helps with tax preparation.
Plus there are several other reasons to outsource your bookkeeping services, so always remember the details you need to look out for in an outsourced bookkeeping service.
What To Expect From Outsourced Bookkeeping Services Dallas?
My Count Solutions is one among the many local business owners providing an excellent team of consultants and experts where the need be. Keeping the clientele in mind, the workflow process of outsourced bookkeeping services is mentioned down below.
Limited Access To The Financial Information
When you hire outsourced bookkeeping services you give access to all the financial data. It can be scary at first. But this is the best way the online bookkeeper can work on your books. Most outsourced bookkeeping services use accounting software to facilitate their work. It’s a smart and easy way to be more productive.
Access To Accounting Files
The use of accounting software keeps the work in check. The bookkeepers if given software with cloud storage like Quickbooks or Xero allow them to manage their files efficiently, the accounting files are a shield with limited authorization. This way the financial information remains protected.
The bookkeeper can add the names and email addresses of the team members and the client. Once the email confirmation is given, access to the financial data is given to desired parties.
Instead of using the desktop program, bookkeepers use online tools so that they can have access to files from anywhere.
Once the outsourced bookkeeper has access to the files, you also need to give them access to your bank and credit statements too.
These statements are also added to the software for billing and accounting purposes. A bookkeeper can pull the monthly statements and check the paid and pending bills. Besides, most national and regional banks give the option for a nominee. You can add someone to your account as a read-only user.
Your outsourced bookkeeper can review the bank account and the statements. It enables them to do the job in an easy way without having the need to bother you when they want something from the bank.
Other Important Documents
Depending on the nature of your small business, you need to give access to the following documents to the hired bookkeeper too;
- Payroll in case you are using a third-party payroll provider. The accounting software usually contains this feature.
- Tax documents of last year must be provided to the bookkeeper to make sure everything is in balance.
- Receipts that are kept in other apps or software, need to be shared as well.
- Apps like Stripe etc that deals with the business’s finances as the mode of payment. The information and access should be given to the bookkeeper.
If you were doing paper-based transactions before, the bookkeeper will encourage you to move towards a digital platform. One of the advantages of hiring online or remote bookkeeping services is that everything is taken care of online. From paper invoices to receipts to expense tracking, everything can be done online.
Even if your business is stable, you will have much to learn from the latest tools too. Bookkeepers can find the tools or software at a low cost but with excellent quality.
If you want the unnecessary burden of paper trails removed then be prepared for the transition from paper to digital. It’s easier for the bookkeeper to keep trials of paperwork, taxes, and so on online instead of recording information manually.
Mutual Set Of Expectations
When outsourcing bookkeeping in Dallas, always keep in mind the purpose behind hiring them.
You need to decide the working hours every day, the mode of payment whether it is bi-weekly or monthly, etc.
Bookkeepers must communicate with you. As a client, you should be available for the bookkeeping service. It’s good to clear any confusion regarding the business ramps. This will help remove any ambiguity regarding the tasks.
Every business is different so the nature of tasks will be different too for the bookkeeper you hire. Just make sure that every financial aspect is already shared with the client.
Services Included In Outsourced Bookkeeping
Some of the most popular outsourced booking services in Dallas include;
Cash flow is one of the primary concerns of a bookkeeper. They are tasked to record the finances and transactions into the accounting software. Their basic job is to keep all the transactions of revenue and expenses organized.
Online bookkeepers also keep track of what you owe to the vendors and collect the debits too. They make sure their client does not lose any purchases either.
A bookkeeper using the accounting software will have premium access to manage the books and record timely. Cloud storage is the best practice to keep data safe. The automatic backup is a lifesaver in case the system crashes.
Bookkeepers also calculate the wages and salaries of your employees, their bonuses, and any deduction. Payrolls are updated on a monthly basis, which is also helpful to manage and track at the time of tax filing.
Outsourcing Bookkeeping At My Count Solutions
For more than a decade now, My Count Solutions is now offering the best team of financial consultants, tax accountants, and CPAs.
Bookkeeping is one of the top services offered at this platform with a hybrid solution i.e. the client and bookkeeper agree to be flexible towards each other.
Any segment of the bookkeeping that is time-consuming for the client is taken care of. My Count Solutions is available for all small businesses to help them remain stable financially.
To achieve your financial stability you can contact us now for a quick demo.