So, what exactly is an “Outsourced Bookkeeping Service”?
Well, first of all it is important to differentiate if the bookkeeping service is working with data 100% “offsite” to their client or if they are working collaborative with the same data. Because it is a big difference and distinction. For the purposes of this article, we will focus on the type of collaborative bookkeeping where the client and bookkeeper/accountant have access to the same accounting database (such as QuickBooks Online) and essentially could work concurrently. We will answer that question at the end.
Before we get into what the outsourced bookkeeping services does, lets talk about what the client (small business owner and team) typically might do inside their accounting system BEFORE the outsourced bookkeeper gets to work:
- Create Estimates and Invoices and send them to their customers
- Create Bills for vendors that they owe money to
- Scan some receipts, bills, and other documents into accounting system to have records on file
- Receive Inventory and perform periodical inventory adjustments (only if they actually manage Inventory)
- Create items (products and services) that will be in estimates and invoices
- Create new accounts into the chart of accounts when a new category of income or expense arises (although this is most accountants’ pet peeve)
- Create new customers and vendors that the company is doing business with
- Receive customer payments (marking invoices PAID or partially paid)
- Create Checks or Pay Bills with checks (Print Checks from QuickBooks)
- Enter employee data into timesheet and/or create Paychecks (assuming that payroll is managed in-house and not outsourced)
- Make sure that all invoices have the correct Sales Tax applied based on their customer’s shipping address, exception status, and/or whatever circumstance affects sales tax. Pay the sales tax liability.
- Free Consultation.