How Does Outsourced Bookkeeping Work?

A 2019 study found that 67% of AU companies with a remote work policy had more productive workers. 64% also had a boost in employee morale. More than half reported enjoying operational cost savings and lower absenteeism rates.

These benefits are similar to those that outsourced bookkeeping services can deliver. Outsourcing companies, after all, also run on the premise of remote work.

So, how exactly does outsourcing work and how does it differ from an in-house employee? What can you even expect from an outsourced bookkeeper?

We’ll address all these questions below, so be sure to read on!

Outsourced Bookkeeping Keeps You Away From Too Many “Hats”

As a small business owner, you’re the core of the operations and the primary decision-maker. At the same time, you’re also likely the HR, the IT, and the main advertiser. You’re already wearing a lot of “hats”, so you don’t want more worries in the form of bookkeeping tasks.

If you use traditional methods when hiring a bookkeeper, though, you’d still have to wear the HR hat. Moreover, going through each applicant would take a lot of time. A study, for instance, found that the average hiring duration in AU was 23.3 days.

You can resolve all these issues by utilising a bookkeeping outsourcing company. They already have a team of highly-qualified, pre-screened bookkeepers. So, you can cut to the chase and have a bookkeeper working for you in as little time as possible.

Through outsourced bookkeeping services, you get to hit multiple birds with one stone. You get to stop wearing the HR and accounting hat, so you have more time to spend on core business tasks. You also get to save resources, since you’ve reduced the time and labour needed to find a bookkeeper.

Outsourcing Eliminates the Need to Invest in On-Site Equipment

If you hire in-office or on-site bookkeepers, they expect you to furnish them with the tools they need. These include all the necessary computing hardware and software. You’d also have to purchase office furniture for your new hires.

These are expenses that you don’t have to worry about when you outsource. Again, outsourcing revolves around the use of remote technology. All processes take place virtually, and the outsourcing firm utilises its own equipment.

Delegate Your Australian Business’ Bookkeeping Tasks To Australian Bookkeepers

The part about outsourcing being virtual may have made you feel uncomfortable. That’s completely understandable, especially since it’s your financial books that we’re talking about. However, if you outsource your bookkeeping needs to Backstop, you don’t have to worry.

Backstop is 100% made in Australia, for Australians, founded by Scott Williams. The founder himself is a Fellow of the Australian Institute of Company Directors. That should give you an idea of how Backstop is all about reliability and reputability.

Also, being an Australian company, Backstop implements quality control based on AU standards. Its team takes over the QC duties so that you have less to worry about. You can make sure that your bookkeeper knows the ins and outs of Australian bookkeeping.

Remote Bookkeeping Is More Cost-Effective Than In-House

Australian bookkeepers earn between $39,000 and $69,000 a year. This is the kind of salary you can expect to pay an in-house bookkeeper. Also, keep in mind that these figures don’t include benefits yet.

By contrast, almost three in five small businesses in Australia have a turnover of less than $200,000 a year. Even if a company makes $100,000 a year, paying a bookkeeper alone half of that doesn’t make financial sense.

An outsourced bookkeeper costs less than what you’d otherwise pay an on-site bookkeeper.

You Get to Choose and Pay Only for What You Need

With an outsourced bookkeeping service provider, you get to specify the tasks you want them to do. You will then pay them only for the services they carry out. A few examples are payroll, profit and loss reports, as well as ATO compliance processes.

If you need them to perform all your bookkeeping tasks, then that’s exactly what you can expect them to do for you. You can delegate weekly or monthly tasks and pay a one-time fixed monthly fee.

Hassle-Free Way to Replace a Bookkeeper

Highly-experienced remote bookkeepers strive hard to satisfy their clients’ needs. Sometimes, though, a client may need someone else with more significant tenure. They may also require a bookkeeper who specialises on a specific field or industry.

If you find yourself in such a situation, Backstop won’t hold you back or make finding a replacement hard. You simply have to let the team know, and they’ll find you a bookkeeper better equipped to fulfil your needs. This is something that can be extremely difficult to do with an in-house bookkeeper.

Scalable and Flexible

As your business grows, so would your needs for resources and labour. You’d need more people on hand to assist you with cash inflows and outflows and tax compliance. You may even expand to the point that you’d require professional reception services.

That’s why you need a scalable system to manage your books. One that grows as your business does, or in some cases, downsizes when your firm does, too.

The good news is, outsourced bookkeeping services are incredibly scalable. Even if you start small, it’s easy to “upgrade” and expand your bookkeeping resources.

Outsourcing Reduces the Stress of Managing Your Books

As you can see, outsourced bookkeeping services offer better and more affordable solutions. As a third-party company with its own reputation to take care of, you can expect them to uphold their values. You, in turn, benefit by having access to a highly-experienced and reliable bookkeeper.

Ready to transform the way you manage your books? Then please feel free to get in touch with Backstop now! We’ll be happy to address all your outsourcing-related enquiries.