Outsourced bookkeeping services: what they include and how they work

An outsourced bookkeeping services provides your business external help with managing transactions, organizing costs, handling invoices and maintaining financial information up-to-date. You provide a remote bookkeeper with agreed-on work to complete, and establish a timeline for bookkeeping review and updates.

Responsibilities should be clearly understood to achieve the best arrangement. There must be someone to fill in the missing documents, clarify charges, and backwards sign off. When you outsource, you get someone to help you, but you must provide information to your bookkeeper to have your books done correctly.

It can make it easier to do business work when that business owner is spending his or her evenings sorting receipts or trying to remember which customers have paid. The first step is deciding what needs to be done and what the condition of your records are. 

What outsourced bookkeeping services include

Bookkeeping is the day to day of the business transactions that maintain the good business organization. Some providers and agreements will differ in exactly what is covered, so request a written explanation of the services covered. 

Recording income and expenses

The bookkeeper keeps track of incoming and outgoing funds and categorises the transactions. This could be anything that is paid to customers, paid as a software subscription, paid as a supply, and any other business expenses.

Context matters. In banking, a transaction is one in which funds are transferred, but which might not be recorded as a purchase. Receipts and clear notes allow the bookkeeper to accurately make entries without asking you the same questions over and over.

Also, standardized categories help to facilitate comparisons for reports. If the same costs are itemized in different categories month after month, it’s going to be difficult to see how spending is changing. 

Invoicing and payment follow-up

Support for the invoicing process may involve creating invoices, marking payable invoices and identifying overdue amounts. There should be an agreement as to follow-up, particularly when the bookkeeper will be reaching out to customers.

An invoice may need approval prior to sending. You could also have customers who have differing payment requirements. Pass on those details at set up time, so the bookkeeper can follow your process.

Unpaid work can be tracked with organized invoicing. Doesn’t ensure customers will pay on time. 

Expense tracking and reporting

In addition, the expense tracking feature enables you to identify how the business is spending its money. Useful reports require up-to-date entries, sensible categories and any explanations that are required to comprehend abnormal quantities.

For instance, a higher software charge may be renewed for an entire year, not merely on a monthly basis. When following your spending, that distinction is important.

Question if there will be a report, how often will it show up, and will unfunded transactions be picked up? A report is more useful if you know what is still left to be taken care of. 

Other support to confirm separately

Some will even handle your payroll or tax preparation. Each of these tasks needs a specific definition of scope since simply recording transactions does not mean that payroll or the tax return is processed.

Ledger Management, Invoicing Support, Expense Tracking and Reporting, Payroll Processing, Virtual Bookkeeping, and Tax Preparation are all listed in A+ Virtual Pro’s bookkeeping service page. Before starting work, talk with your company about the services that will apply to your company. 

When outside bookkeeping help makes sense

There is no need to wait for 1-2 months for your records to be at least that old.

If bookkeeping demands are interfering frequently with work you can do, outside support can be helpful. Maybe you simply have not been getting things done or you’re waiting for clients to call back.Maybe you’ve been putting things off or waiting for clients to call you back. Maybe invoices are sent late and it’s not possible to easily determine which invoices are paid.

Memory dependence is another one of these signs. As transactions grow, the process becomes challenging if you must keep track of what every transfer is for if there are no notes or documents.

There are some businesses that require continuous assistance. Some need the assistance to update the records they used to have. Be truthful about the backlog story, let’s say how many months it will take and if there are statements/receipts.

That info has an impact on initial workload. 

How the working arrangement should begin

An initial discussion of your process, problem areas you are looking for assistance with and what you want the provider to do.

Describe location of records and who holds them now. The following are included: all spreadsheets, bookkeeping software, payment platforms, and separate business accounts. Indicate if another accountant is currently working with you.

The provider should then explain what is needed and what their responsibilities are in regard to access. Who supplies receipts? Who is responsible for answering the ‘co transaction’ questions? Who criticizes work when it is done? These points can be more easily resolved prior to the first reporting date.

Agree on a regular way to share documents. It will be a challenge to verify that they are all received, when some are sent via email and others using a variety of messaging services.

The short list of excellent questions can help keep communication on track. Your bookkeeper can take unclear transactions off your machine to have them reviewed and you can reply with all the supporting info in one location. 

Set expectations for record checks and deadlines

It is only useful to enter transactions. Inquire if the service offers to reconcile entries with bank and credit card statements, a feature commonly referred to as “reconciliation.

This check can be used to find any disparities that should be investigated, for example, missing entries or duplicate records. Verify accounts to be audited and frequency of auditing.

Deadlines should consider what information you have to submit. A provider is not able to complete a period until needed statements or transaction explanations have been received.

Determine a sensible document deadline and planned date for changes. If you require information more often for your business, have a conversation about it prior to selecting the scope of service. 

What affects the cost

The cost of outsourced bookkeeping will vary depending on the volume and difficulty of business associated with bookkeeping duties. For a business that processes a small number of simple payments, there is a different set of requirements than for a business that processes payments across multiple platforms and processes a lot of refunds.

One is quantity of transactions. Workload is also a function of the number of accounts, the quality of the records held and the reporting frequency.

Catch-up work should be dealt with differently. If there are still a few months of interruptions in the records, the initial project must be completed before the routine care can start. Inquire if that work is free or for extra.

Compare Proposals based on Deliverables. A lower fee may include simple transactions being entered into the system, but not invoicing, reconciling or reporting.

A+ Virtual Pro will provide a consultation to discuss your needs. Be prepared to have an outline of your accounts and workload to discuss the support that you do need. 

Keep access and approvals clear

When sharing records, inquire about how they handle access to the records as well as how they store them. Explain to others who will be involved in your books and what will happen to access to them upon the completion of the arrangement.

In some cases, having a single user account is easier to manage than multiple user accounts, particularly in cases where your software allows for individual user accounts. Permission should be consistent with the assignment of work.

The responsibilities for approving must also be clear. Creating an invoice, noting a payment and approving a money outgoing are separate actions. Determine the person to do each one.

Acknowledge you will continue to have access to your records and be able to receive copies of work completed. This ensures you don’t have to rely on information you don’t understand in attempting to deal with changes of responsibility or transfer to another provider. 

Working with A+ Virtual Pro

A+ Virtual Pro offers bookkeeping services remotely as part of its outsourced business services. It has a website that outlines a process that includes consultation, discovery meeting, matching and onboarding, along with account management and shift summary. 

Use the first conversation to describe what’s causing problems at this time. “Help with bookkeeping” is a good start, but “Please prepare invoices weekly and update expenses prior to monthly review” provides a more definite brief to the team.

It’s also important to discuss with the person what you will still be doing for yourself. Certain owners will want to clear all consumer bills. Others would like to review exceptions and are interested in receiving updates on a regular basis.

In the agreement, both sides should be aware of the next step and the agreed steps should reflect those preferences. 

Frequently asked questions

What are outsourced bookkeeping services?

Outsourced bookkeeping services involve hiring an external provider to handle agreed financial recordkeeping tasks. These may include transaction entry, expense tracking, invoicing, and regular reports.

Can a remote bookkeeper work with my existing software?

That depends on the provider’s experience and your software. Confirm compatibility before hiring, including whether you can keep your existing account and records.

Do I need to organize everything before getting help?

No, but explain what is missing or incomplete. The provider needs to assess the condition of your records before agreeing on the initial workload and ongoing support.

Is reconciliation included in bookkeeping?

It may be included, but you should confirm it. Ask which bank and credit card accounts the provider will reconcile and how often the checks will happen.

Does bookkeeping automatically include tax preparation?

No. Confirm tax preparation separately, including who will perform it and what information they require. A+ Virtual Pro lists it as an available service on its website.

How often should I send documents?

Use a schedule agreed with your provider. Sending records regularly makes it easier to resolve questions while transaction details are still familiar.

Will I still need to review the books?

Yes. You should review updates, answer questions, and check that the reports reflect your understanding of the business. Outside support does not remove the need for owner involvement.

Can outsourced bookkeeping help with unpaid invoices?

It can help track unpaid invoices and support agreed follow-up tasks. Your payment terms and approval rules should guide any customer communication.

What should I ask before hiring a provider?

Ask about included tasks, reporting deadlines, access permissions, communication, and additional charges. Request a clear explanation of how incomplete records and unresolved questions will be handled.

How do I get started with A+ Virtual Pro?

Book a consultation through the A+ Virtual Pro website. Prepare a brief description of your current bookkeeping process, any backlog, and the tasks you want to delegate.

Discuss the work you need handled

Start with the recurring tasks that take too much time or keep falling behind. Note which records are current, what needs attention, and when you need updates.

Contact A+ Virtual Pro to discuss outsourced bookkeeping services and agree on a scope that fits those needs.