How and When to Outsource Your Bookkeeping 

Bookkeeping is at the heart of every successful business, and for small businesses and startups, effective bookkeeping can be a game-changer.

Managing books in-house often diverts time and resources away from growth-focused activities.

That’s where services like doola Bookkeeping come in.

In this article, we’ll dive into why you should outsource your bookkeeping. We’ll also explore the signs it’s time to make the switch, break down types of services, and discuss costs — all to help you determine the best bookkeeping fit for your business.

Should I Outsource Bookkeeping?

Outsourcing bookkeeping has significant advantages, especially for small businesses aiming to optimize resources. With expert bookkeepers on your side, financial management becomes more efficient and reliable.

In addition to accuracy, outsourced bookkeeping provides cost efficiency by eliminating payroll expenses, benefits, and overhead that come with in-house staff.

For startups and small businesses, our team at doola Bookkeeping is a great choice offering many options.

With doola’s support, you’ll gain access to expert guidance, up-to-date financial insights, and a team that ensures compliance and accuracy in your books — empowering you to make strategic decisions with confidence.

Signs It’s Time to Outsource Your Bookkeeping

You might wonder if now is the right time to switch to outsourced bookkeeping. Here are some clear indicators:

Too much time spent on bookkeeping tasks:

If bookkeeping is taking you away from business development and customer interaction, outsourcing can free up your time.

Consistent financial errors:

Frequent errors in your records indicate that professional assistance may be needed to keep your finances accurate and tax-compliant.

Increased complexity in finances:

As your business grows, handling payroll, inventory, taxes, and accounts payable can become challenging. Professional services provide the expertise and scalability to manage this complexity.

Falling behind on tax compliance:

Missing tax deadlines can lead to costly penalties, while an outsourced service ensures you stay on track.

Feeling overwhelmed by financial tasks:

Financial management is critical to success, and if it’s causing you stress, bringing in experienced bookkeepers can ease the burden.

Types of Outsourced Bookkeeping Services

Outsourced bookkeeping comes in several formats, each with unique benefits.

Here’s a breakdown:

Freelance Bookkeepers

Hiring freelancers offers flexibility and affordability, especially for straightforward bookkeeping needs.

Freelancers typically charge between $20 to $50 per hour, though management and oversight are still required to ensure consistency and accuracy.

Bookkeeping Firms

For a hands-on, reliable approach, bookkeeping firms provide the advantage of a dedicated team with a structured system for quality control.

Rates range from $300 to $1,500 per month, with service tiers based on needs.

Online Bookkeeping Services

Online bookkeeping services are increasingly popular, offering the advantage of technology with human expertise.

This model allows you to access financial data anytime, from anywhere, which is essential for managing cash flow and expenses in real time.

Most online services range from $200 to $600 per month, and with doola Bookkeeping, you gain an affordable, user-friendly option for consistent bookkeeping and insights.

How Much Should I Expect to Pay for an Outsourced Bookkeeping Service?

Pricing for outsourced bookkeeping depends on factors like the business’s size and complexity. Here’s an average range for each type:

• Freelancers: $20 – $50 per hour

• Bookkeeping Firms: $300 – $1,500 per month

• Online Services: $200 – $600 per month

doola Bookkeeping offers flexible, cost-effective packages designed specifically for small businesses and startups.

Our team and technology adapt to your needs, providing an affordable solution that evolves with your business.

Pros and Cons of Outsourcing Bookkeeping

Pros

✅ Expertise: With outsourced professionals, you gain accuracy and compliance.

✅ Time Savings: Free up time to focus on core business functions.

✅ Scalability: Easily scale services up or down as needed without the constraints of a full-time hire.

✅ Cost Efficiency: Reduce costs associated with hiring in-house staff, including benefits and payroll.

✅ Compliance Assurance: With professional oversight, you reduce the risk of tax penalties and ensure regulatory compliance.

Cons

❌ Reduced Control: Business owners who prefer hands-on financial control may need to adjust to an outsourced service model.

❌ Communication Gaps: Ensuring clear communication with an external provider is essential to avoid misunderstandings or delays.

❌ Dependency on Third-Party Service: While reliable providers do minimize risks, unexpected disruptions in access could impact operations.

doola Bookkeeping – A Reliable Partner for Your Books

At doola, we’re dedicated to supporting small businesses and startups with doola Bookkeeping — a solution that’s reliable, scalable, and affordable.

Our team combines expert financial knowledge with user-friendly technology, giving you real-time insights into your finances and the confidence that your books are managed with care.

Ready to streamline your bookkeeping? Explore our service packages designed for the unique needs of growing businesses.

Book a demo with our experts to understand how doola bookkeeping can revolutionize your accounts.

FAQs

How does outsourced bookkeeping work with my existing systems?

Outsourced bookkeeping providers typically integrate seamlessly with popular accounting software and other financial tools you may already be using.

Can I switch from in-house to outsourced bookkeeping mid-year?

Yes, you can switch to outsourced bookkeeping at any time.

Most bookkeeping services, including doola Bookkeeping, offer Catch-up Bookkeeping services to help migrate your financial data and ensure that everything is accurate and up-to-date.

Will I still have control over my financial data with an outsourced service?

Absolutely. You’ll have access to your financial data at all times through a secure, user-friendly online platform.

Our service provides real-time access to financial reports and ensures that you’re always in the loop on your business’s financial health.

What’s the difference between bookkeeping and accounting?

Bookkeeping is focused on recording daily financial transactions, such as sales, expenses, and payroll, to keep records accurate and organized.

Accounting, on the other hand, involves analyzing this financial data, preparing tax documents, and helping with strategic planning.

Many businesses start with bookkeeping and add accounting services as they grow.

Is outsourced bookkeeping suitable for very small businesses or freelancers?

Yes! Outsourced bookkeeping can be highly beneficial for tiny businesses and freelancers. Services like doola Bookkeeping offer flexible pricing plans, making it an affordable solution even for businesses with minimal transactions.

It allows you to stay focused on your work while keeping your financials in order.