10 Questions To Ask Bookkeeping Outsourcing Services

More and more businesses are now using bookkeeping outsourcing services to save significant amount of time and costs on routine accounting tasks.

However, finding a competent bookkeeping service partner is not a matter of luck but thorough research and investigation.

So, it’s crucial to do your research to gauge your potential outsourced bookkeeper. In addition to the type of services and pricing, don’t forget to inquire about their credentials, resources, processes, and work culture beforehand.

In this article, we are listing some important queries that can help you when hiring an external bookkeeper.

10 Questions For Outsourced Bookkeeping Services Before Hiring Them

Here are the top questions you should ask your potential bookkeeping outsourcing services. We’ve also explained why they are so crucial for selecting the best fit for your company.

1. Do you have experience working with businesses in my sector? 

Your bookkeepers must have ample experience and expertise needed for your industry. They should be able to understand every aspect of your business and any requirements specific to your sector.

Retail companies and service enterprises may not want to hire a bookkeeping service having expertise in manufacturing space only, for instance. 

2. What are the specific services you offer? Do you also provide customized outsourced bookkeeping solutions?

No two businesses or organizations are the same (might sound cliché, but it’s true)! Nor are their bookkeeping and accounting needs.

Take these examples:

• A startup company seeks bookkeeping outsourcing services to set up a chart of accounts, establish internal controls, and ensure compliance with relevant regulations as the business grows.

• An online business or a credit card company usually has very high daily transaction volumes and cash fluctuations, requiring daily bookkeeping.

• A restaurant business with moderate daily sales can often manage with weekly bookkeeping. However, a high-traffic restaurant chain with comparatively high transaction volume would prefer daily bookkeeping.

• An NGO hires a bookkeeper specializing in non-profit accounting to track its tranascations, ensuring accurate records for donations, program expenses, and overall financial health.

So, you see bookkeeping outsourcing services with limited capabilities may work well for small set-ups. However, large organizations need a well-equipped and seasoned service partner to handle the workload and challenges posed by complex operations.

Since not every accounting or bookkeeping services firm offers the same range of expertise and scope of services, do check whether they have what you need or tailors their solutions for you.

3.What are your qualifications and certifications as a bookkeeper?

Financial, tax, cost, management, audit, etc., are all different branches of accounting. See to it that the outsourced service provider you select has certifications for the categories of services they offer.

Here as well, the bookkeeper can be a generalist or a specialist.

There are specialist bookkeepers who have in-depth knowledge of specific industries or niches. Their specialization allows them to understand the unique accounting needs of those sectors.

For instance, bookkeeping for a healthcare business is different from inventory bookkeeping for an e-commerce company. So, if you have specific needs, you should look for a service provider with experience in your sector.

However, it’s important to note that specialist bookkeepers may have the same educational background as general bookkeepers but often have additional certifications or training relevant to their specialty.

Or they become specialists simply through experience!

Furtheremore, the firm’s registration status also is an important selection criterion. Because only a bookkeeper who is expert on US accounting standards can ably handle accounts of a US-based company. 

4. Tell me about your pricing model.

Outsourced accounting services companies typically have a variety of pricing options, including standard and customized plans, as well as discounts for certain services.

The charges usually depend on the duration of service. The payment schedule for yearly contracts can be annual or quarterly. Some bookkeeping services also offer pay-per-use model and hourly pricing.

It’s important to understand the pricing and payment policies of any outsourced bookkeeping and/or accounting services company before you sign a contract.

Outsourcing surely helps you save a lot of expenses needed to hire and retain in-house bookkeepers!

5. What are your technological capabilites? Which bookkeeping software do you deploy?

The bookkeeper team should be proficient in top accounting/bookkeeping software. This could include one or more platforms such as Sage, NetSuite, Xero, QuickBooks, FreshBooks, Wave, etc., to name a few.

You can ask your service provider which bookkeeping software they are adept in and whether their employees are adequately trained to use them. They should also be up-to-date on emerging bookkeeping technology trends and practices.

6. On-site or remote bookkeeping – What will be your work location?

If both parties agree, the outsourced bookkeeping services company’s team can work on-site i.e. on client’s premises. However, it’s not feasible in most scenarios.

Services firms usually like to work off-site i.e. from their location. 24X7 global internet connectivity and digitalization allows them to raise remote accounting teams collaborating in real time.

Virtual bookkeeping is becoming commonplace nowadays. It provides businesses with cost savings, access to experienced professional bookkeepers and other accounting experts, and the convenience of handling financial tasks remotely.

If you’re a business, CPA, or accounting firm looking for reliable bookkeeping services, get in touch with Centelli. We offer virtual and remote bookkeeping and accounting worldwide!

7. How would you protect my data and ensure its confidentiality?

The client should be able to trust their bookkeeper with their sensitive financial information and data. You must ask your potential bookkeeping services partner how will they handle your data?

It’s important to know which data storage systems they use, how they segregate duties of their accounting and bookkeeping team members and how much data access each member will have.

Tasks like payments and receivables, bank reconciliations, and tax filings can be assigned to different people to limit their access, for example. Only top level employees should have total access as they need to have a complete picture to oversee the entire process.

Moreover, also learn about the safety protocols and monitoring process they follow to prevent data corruption, loss and theft.

8. What about communication and feedback during service delivery?

Communication is essential for any successful business relationship. Make sure the bookkeeping services company you choose has a clear and consistent communication plan.

You need to know which channels (in-person, email, telephonic, or video chats) they will use for communication and who will be the contact person. Also, get details on their reporting and feedback systems.

Sometimes, the service provider may also need to deal with the third party on behalf of their clients. Ask them in advance if you have any such expectation.

9. How would you ensure that my bookkeeping workflows do not suffer when your account manager is unavailable?

Bookkeeping is the backbone of business finance management. It’s a continuous, everyday process that influences every aspect: tracking trade transactions, payroll management, tax preparation, financial planning, and decision-making.

Therefore, if the account manager or other bookkeeping team members are unavailable for some reason, your bookkeeping service provider must ensure that your work is not affected. They should have a contingency plan in place with backup employees who can take over your work seamlessly.

Such emergency planning is even more desirable when you’re looking to raise funds or   contemplating merger, acquisition, or exit.

10. Regular bookkeeping apart, do you also provide advisory services?

Bookkeeping advisors are specialists and highly experienced.

They go beyond merely recording transactions and closing books. They analyze financial data, identify trends, and offer insights to help businesses make informed decisions.

They can work as consultant bookkeepers or directly manage clients’ accounts. They may provide services such as budgeting, cash flow forecasting, and financial reporting. Some may even offer basic tax planning advice.

Therefore, when you’re seeking bookkeeping outsourcing services that offer advisory services, discuss your exact requirements and get a clear idea of their technical proficiency, experience and knowledge of relevant statutory rules and compliance regulations.

They should also be capable of handling complex transactions and need to have excellent project management skills as well.

Also, don’t forget to enquire about their fees and past clients. Make certain that you collect every significant detail.

You May Also Like: Small Business Bookkeeping Guide (Simple and Practical Tips) – Centelli

Closing Note on Outsourcing Bookkeeping

Hiring a third party services to manage your business accounting and bookkeeping is becoming a norm now. From basic record keeping and financial statements preparation to financial data analysis, you can outsource according to your needs.

A competent outsourced accounting services can be a valuable asset to your company. However, it’s crucial to do enough research and ask the right questions before signing the service contract with them. Remember, even a random query can sometimes lead to crucial insights for making a right decision.