10 Questions To Ask Bookkeeping Outsourcing Services

Businesses are now increasingly using bookkeeping outsourcing services to save on time and costs of managing it in-house.

However, finding a competent bookeeping service partner is not a matter of luck but thorough research and investigation. So, it’s crucial to do your research and ask the right questions to gauge your potential outsourced bookkeeper if you are looking to hire one.

However, your inquiries should not be limited to the service offerings and pricing alone. You should also make an effort to learn about their credentials, resources, processes, and work culture beforehand.

10 Questions For Your Potential Bookkeeping Services Partner

Here is a curated list of the top questions to ask when considering a bookkeeping service for your business. We’ve also explained how these questions can help you choose the best fit.

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

Your bookkeepers should have the expertise needed for your industry. They must understand every aspect of your business and any sector-specific requirements.

For instance, retail companies and service enterprises may not want to hire a bookkeeping service that specializes only in manufacturing.

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

No two business organizations are the same, and neither are their bookkeeping and accounting needs (it might sound cliché, but it’s true!).

Consider these examples:

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

• An online business with high daily transaction volumes requires daily bookkeeping.

• A restaurant with moderate sales may manage with weekly bookkeeping, while a high-traffic chain may prefer daily services.

• An NGO might need a bookkeeper specializing in non-profit accounting to ensure accurate records for donations and expenses.

So, while limited capabilities may suffice for small setups, larger organizations require a seasoned partner to handle complex operations.

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

Financial, tax, cost, management, audit—these are all different branches of accounting. Ensure the outsourced provider has the right certifications for the services they offer.

Bookkeepers can be generalists or specialists. For example, healthcare bookkeeping differs from inventory bookkeeping for e-commerce.

If you have specific needs, seek a provider with sector-specific experience.

Specialists may have the same educational background as generalists but often have additional certifications or experience relevant to their specialty.

Also, ensure the firm’s registration status is suitable for your country’s accounting standards.

Not all accounting or bookkeeping firms offer the same expertise and range of services. Make sure to check if they provide what you need or if they can tailor their solutions to your requirements.

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.

Only a bookkeeping outsourcing services company with expertise in GAAP and US accounting standards can effectively handle the work of a US-based business.

4. Tell me about your pricing model.

Outsourced accounting services companies offer a variety of pricing options, including standard and customized plans, and discounts for certain services.

• Charges usually depend on the duration of service
• Payment schedules vary from montly to annual to quarterly.
• Some bookkeeping services also offer pay-per-use model or hourly pricing

Outsourcing can save significantly compared to hiring in-house bookkeepers.

But make sure you understand pricing and payment policies of your service provider before signing on the dotted line.

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

Your outsourced bookkeeper should be proficient in top accounting or bookkeeping software, such as Sage, NetSuite, Xero, QuickBooks, FreshBooks, Wave, etc., to name a few.

Services providers are usually adept with multiple software, notably.

• Ask which software they use and if their employees are adequately trained
• The should also keep abreast with emerging technologies and bookeeping trends

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

If agreed upon, the outsourced team can work on-site. However, this isn’t feasible in most cases. Outsourced bookkeeping services company usually works off-site.

Remote accounting teams and virtual bookkeeping is becoming commonplace. Factors at play:

• 24X7 global internet connectivity
• Digitalization and real-time collaboration
• Extra cost savings via offshore outsourcing

To top it all off, access to a wide pool of experienced professionals and freedom from bookkeeping tasks allows internal team to pay more attention to critical financial management

If you’re looking for reliable and cost-effective bookkeeping outsourcing services, get in touch with Centelli. We provide remote, virtual, and online bookkeeping for businesses of all sizes, helping you save up to 35% to 65% on costs.

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

Trusting a bookkeeper with your financial data is essential. Ask your potential bookkeeping services partner how they’ll handle your data.

You should find out:

• Which data storage systems they use
• How they segregate duties among accounting and bookkeeping team members
• What level of access each members has
• What data safety protocols they have
• How robust is their monitoring process

For example, tasks like payments and bank reconciliations can be assigned to different people to limit access.

And only top-level employees should have total access—this helps prevent data corruption, loss, and theft.

8. What will be the process for communication and feedback during the period of service?

Communication is essential for a successful business relationship. So make sure:

• The bookkeeping services you choose has a clear communication plan
• Know which channels they’ll use (in-person, email, phone, video) and who your contact person will be
• Get details on their reporting and feedback systems

Sometimes, the provider may need to deal with third parties on your behalf. Ask about this in advance if you have any such requirement.

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

Bookkeeping is the backbone of financial management. It’s a continuous process that impacts every aspect of your business from tracking transactions to payroll management and tax preparation.

And ultimately your company’s overall financial planning and business decisions.

So, your bookkeeping service provider must ensure:

• Your work isn’t affected if the account manager or a bookkeeping team member is unavailable for some reason
• They should have a contingency plan with backup employees who can seamlessly take over

Such emergency planning is especially important when your company is raising funds or planning mergers, acquisitions, or exits.

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

Bookkeeping advisors are specialists who go beyond recording transactions and book closing. They analyze financial data, identify trends, and offer insights to help your business make informed decisions.

Their USP:

• They work as consultant bookkeepers or may directly manage clients’ accounts
• The range of services may include budgeting, cash flow forecasting, and financial reporting
• Some can also help you with basic business tax planning advice

Therefore, if you’re on a look out for a bookkeeping outsourcing services that offer advisory services, you must discuss your exact requirements.

Furthermore, assess their technical proficiency, experience and knowledge of compliance and relevant regulations.

See if they are capable of handling complex transactions and have excellent project management skills as well. Also, don’t forget to enquire about their fees and past clients.

Make sure you gather all significant details!

Get to Know the Bookkeeping Service Firm Even Better: Add-On Questions

Once you’ve completed your initial investigation, dive deeper with even more targeted questions to assess your future bookkeeping outsourcing services partner.

Follow-up inquiries will help you fully grasp the service offerings and work culture. This will ensure a seamless transition post hiring. Here are some important ones: 

1. How long will it take to finalize the service contract?

It’s crucial to ask about the timeline for preparing and finalizing the contract. Additionally, clarify how both parties will communicate and collaborate during the pre-sign-up and sign-up process.

Be attentive to any potential concerns.

Remember, once you sign the SLA, your partnership with the service provider becomes official.

2. What about the resource assignment: dedicated or shared bookkeeper?

Learn about their workflows and resource allocation. Why?

• For businesses with high transaction volumes, a dedicated bookkeeper can be more efficient, though it may come at a higher cost.
• Companies with lower volumes might opt for shared staff to manage expenses while still addressing their bookkeeping needs.

See what works for you: shared resource(s) or a dedicated bookkeeper or team?

3.  What will the work hours be for the bookeeper(s) assigned to me?

The service provider should be able to align with your business hours.

In case you are tying up with an offshore services, ensure they can operate within your time zone for seamless operations. This is especially important if you want round-the-clock support.

4.  Implied terms in the service agreement?

Before hiring a bookkeeping service, inquire about implied terms like confidentiality, accuracy, and compliance.

Check if they  guarantee timely work, high standards, clear communication, and dispute resolution. These details ensure a smooth, professional outsourcing relationship and protect your business.

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

Closing Note on Evaluating Bookkeeping Outsourcing Services

Hiring a third party services to manage your business accounting and bookkeeping is becoming a norm now. A competent bookkeeping firm can be a valuable asset to your company.

So, do enough research and evaluate diligently before signing the service contract. It makes sense to prepare a comprehensive list of questions to ask when hiring a bookkeeping service.

Even a random query can sometimes lead to crucial insights for making the right decision!