6 Best Outsourcing Accounting Services for Small Business

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Today you’re going to learn how to about outsourcing accounting. All of these tips and strategies will be useful if you're a startup, entrepreneur or small business.

Outsourcing accounting services can be a great way to streamline your business operations while also saving time and money. However, with so many options available, it can be difficult to determine which provider is best suited to meet your specific needs. To help you make an informed decision, we’ve compiled a list of the top outsourcing accounting services available today.

What is Finance and Accounting Outsourcing?

Outsourced accounting is a service that provides a full, accounting department for small businesses and startups.

Think about it. Every business (except not-for-profit companies) has to consider making a profit in order to continue its services.

So, finance and accounting for businesses usually take the form of working on balance sheets, income statements, and a statement of cash flows. These are all financial reports that need to be compiled in a specified time frame and at least once a year.

These statements are generated from a business' accounting transitions, which come from ledgers and journals that record financial transactions.

How Much Does it Cost to Outsource Accounting?

When considering outsourcing your accounting services — your small business budget allocated for accounting services is a big deciding factor.

Overall — expect to pay much less over hiring a full-time accountant. If you're a small business then expect to pay $500 to $2,500 a month for bookkeeping services. This figure depends on the complexity of your business and the financial reporting required.

If you are a startup or a smaller entrepreneur — you can pay much less by using freelancers to work on your bookkeeping needs. You can often time cheaper accountants who work online jobs by the hour on freelancing sites like Upwork.

However, if you're a small business then you can consider opting for a dedicated team of experts who know the complexities of your business, your industry, and how to help you save on taxes—all while keeping your books organized and on-time with companies like Xendoo.

Thousands of businesses— big and small— trust Xendoo for their accounting, bookkeeping and tax returns. If you're interested, you can find a plan on Xendoo that fits your business needs to free up your time, grow your business, go on a date, or get some sleep.

Money back guarantee
Online Bookkeeping and Accounting Services | Xendoo
5.0

Xendoo delivers online bookkeeping, accounting, and tax solutions to small businesses with fewer than 20 employees. The platform integrates directly with Quickbooks Online and Xero. Let a team manage your finances so you don't have to.

See Pricing on Xendoo

Tips for Outsourcing Accounting

Today you’re going to learn how to outsource your accounting processes. The best part? All of these tips and strategies will be useful if you're a startup, entrepreneur or small business.

When you decide to outsource your company's accounting, then it does have its set of benefits. The biggest benefit of this practice is that you can lower your business expenses by hiring a full-time in-house accountant or online booking services.

If you are planning to scale up your business, then outsourcing accounting can be a great option to leave the financial reporting to the pros and let you handle business.

To make things easier we will just give you a few tips in this regard which will make you learn how to outsource your accounting services.

1. Identify the Needs of Your Business

The first important step is that you need to identify the needs of your business. What you need to understand is that there are various functions involved in the process of accounting. You do not have to outsource all of them.

When you figure out the tasks that you want to outsource, then this will help you save up on a lot of money.

2. Select Qualified Professionals

Once you have identified your objectives, then it will become much easier for you to select the outsourcing firm that will take care of your outsourcing needs.

Go for established firms like Xendoo and professionals. You should not compromise on the element of quality.

Money back guarantee
Online Bookkeeping and Accounting Services | Xendoo
5.0

Xendoo delivers online bookkeeping, accounting, and tax solutions to small businesses with fewer than 20 employees. The platform integrates directly with Quickbooks Online and Xero. Let a team manage your finances so you don't have to.

See Pricing on Xendoo

3. Raising Concern about the Security Measures

Security is also a major concern when you have made up your mind to outsource the accounting of your company. The best move is to sit down with the outsourcing company representatives and discuss your concerns.

You should also ask the accounting professionals about the measures they will adapt to secure your data in the long-term.

4. Establish a Strong Communication Channel

If you want to get the best results, when outsourcing accounting and bookkeeping, then you need to make sure that you follow an established communication channel. Both you and the outsourcing firm should be on the same page. This way you can get the desired results with ease.

All this effort is worth it because if you get hold of a good bookkeeping service from the beginning, then it can help you to develop good business habits. There are a lot of online bookkeeping options for you. This is why you will not have to worry about the fact that employees will steal from you.

Plus, you will be aware of what is happening at every step. When you feel the need to seek investment capital, then your bookkeeper has an important role to play in this regard. Your bookkeeper will provide you the analysis you need for your business to function smoothly.

6 Best Outsourcing Accounting Services for Small Business

1. Xendoo: Our Pick

Xendoo delivers online bookkeeping, accounting, and tax solutions to small businesses with fewer than 20 employees. Their technology platform provides timely financial insights, so business owners can make informed decisions faster and focus on growing their businesses.

Get personalized financial support on your terms, whatever industry you are in. Communicate with your bookkeeper how you want, when you want. They are in the office next door, virtually. Xendoo is integrated with bookkeeping software like Quickbooks Online and Xero (costs are included in Xendoo’s monthly fees).

Money back guarantee
Online Bookkeeping and Accounting Services | Xendoo
5.0

Xendoo delivers online bookkeeping, accounting, and tax solutions to small businesses with fewer than 20 employees. The platform integrates directly with Quickbooks Online and Xero. Let a team manage your finances so you don't have to.

See Pricing on Xendoo

2. Merritt Bookkeeping: Best Overall

Merritt Bookkeeping is an excellent option for small businesses looking for an affordable, yet high-quality accounting service. Their team of experts provides a range of bookkeeping services, including accounts payable and receivable, bank reconciliation, financial reporting, and more. They also offer a personalized approach to customer service, ensuring that you always have access to the support you need to keep your business running smoothly.

3. Bookkeeper.com: Most Versatile

Bookkeeper.com is a great option for businesses of all sizes that need a versatile accounting solution. Their team of experts provides a range of services, including bookkeeping, payroll, tax preparation, and more. They also offer a variety of pricing options to suit different budgets and needs, making it easy to customize your service plan.

4. inDinero: Best for Established Startups

inDinero is a popular choice for established startups that need a more robust accounting solution. Their services include bookkeeping, payroll, tax preparation, financial planning, and more. They also offer a user-friendly software platform that allows you to easily track your finances and make informed business decisions.

5. Bench: Best Bookkeeping + Payroll

Bench is an excellent option for businesses that need both bookkeeping and payroll services. Their team of experts provides comprehensive bookkeeping services, including bank reconciliation, financial reporting, and more. They also offer a user-friendly software platform that allows you to easily track your finances and manage your payroll.

6. Bookkeeper360: Best for Bookkeeping Only

Bookkeeper360 is a top choice for businesses that need bookkeeping services only. Their team of experts provides a range of services, including bank reconciliation, financial reporting, and more. They also offer a user-friendly software platform that allows you to easily track your finances and make informed business decisions.

The Bottom Line

In conclusion, outsourcing accounting services can be a great way to streamline your business operations while also saving time and money. When choosing an outsourcing provider, it’s important to consider your specific needs and budget, as well as the reputation and experience of the provider. The five options listed above are among the best outsourcing accounting services available today and are worth considering for your business.

About the author

Brian Meiggs
Hi, I'm Brian Meiggs! A personal finance expert, entrepreneur, and the founder of My Millennial Guide. My drive is to help others unlock the wealth of freedom and pave the path to financial success. With my bachelor's degree in finance, I help millennials follow the smart money in order to increase their earning potential and start building wealth for the future. I write regularly about side hustles, investing, and general personal finance topics aimed to help anyone earn more, pay off debt, and reach financial freedom. I have been quoted in major publications including Business Insider, Yahoo Finance, NASDAQ, Discover, GoDaddy, BiggerPockets, Fox News, Debt.com, Quick Sprout, Money Geek, MSN Money and many more!