What To Know Before Hiring An Outsourced Accounting Service Provider

Outsourced accounting services can be a great resource to improve your financial systems and boost your business results. There’s no doubt that your company will benefit from experienced advice and guidance to help with cash flow and profit evaluation. But, how do you know which outsourced accounting service provider to choose?

On just the Google search engine alone there are more than 17 million search results for “accounting services” and nearly 3 million search results for “outsourced accounting services.

This may sound extremely overwhelming if you are looking for an outsourced accounting service provider in denver. However, outsourcing is a business relationship that requires communication and preparation. Taking the time to interview an outsourced accounting service provider before you sign a contract will ensure that you’re making the best choice for your organization. We have outlined some essential questions and things to look at below to help you interview a potential candidate.

#1. Look at References and Reputation

What is the reputation of the company that you want to hire? Considering references and the business reputation can give you an idea about the quality of service that you can expect. Search online for the company name to uncover reviews and information shared by other customers.

Asking for references can be one way that you determine the quality of outsourced accounting services that are provided. Before you hire the team, ask for contact information for references that can answer your questions. A good accounting team won’t hesitate to provide references upon request. You can talk to satisfied customers to know that you will be receiving services from a reputable company.

#2. Compare expenses for the services

Hiring an employee can cost you thousands of dollars per month, which is why many CPAs try to charge high amounts for their ongoing accounting services. Even though you are tapping into the professional experience of the team, you don’t need to pay that much for good accounting and bookkeeping services.

The three most common pricing models in this business are flat, hourly, and retainer. Hourly is the simplest, but also the hardest to control costs. Flat is good because you can easily budget for it, but it may limit the scope of what you receive from your vendors as they have to control their costs. Retainer is a good compromise. You get the benefit of defined scope, and the option to add jobs as you need them. The vendor is instantly committed to your project when the retainer is funded. This can be a win-win with the right vendor for the job.

Before you sign an agreement, make sure that you are clear about the amount that you will be paying and the services that will be offered. These details will ensure that everyone is on the same page regarding the outcome of the services that you will be receiving

#3. Which accounting software(s) are they proficient in?

Obviously, software plays a big role in every business function. Accounting is no different. Choosing the correct software for your company’s workflow and scale is an important decision that you will have to live with long term. Choosing the correct vendor who either can implement a new accounting system she is familiar with little disruption or can work within the framework of what your company has set up is something to consider.

#4. Are there contracts?

Many service companies are shifting to a month to month model to attract new customers who may not be willing to commit long term. However, there are implications of outsourcing your finance department that may call for a written agreement. Your company’s books are confidential, and the information contained within them can be used to compete or destroy your company in the wrong hands. Confidentiality and non-compete clauses are considerations you should not take lightly. Consult legal counsel for expert advice on this subject.

#5. Are they a CPA-trained and Supervised Bookkeeper?

When you outsource a bookkeeping service, supervision, and training matter. While accounting fundamentals haven’t changed, technology keeps changing constantly. Therefore, you don’t want a bookkeeper who’s trained in outdated accounting software or bookkeeping methods.

Fortunately, training permits them to stay current with the latest software applications and trends. Remember, supervision is also important. Therefore, a more senior professional should supervise the bookkeeper and review his or her work to ensure it meets quality standards and that it’s error-free.

#6. . What can I expect around response and delivery times?

A common complaint surrounding outsourced accounting services in Denver is that they can respond slowly to emails and they don’t complete the bookkeeping at the set schedule. It’s also important to bear in mind that some outsourcer accounting services lack sufficient time to dedicate to your accounting while others are extremely busy during crucial tax reporting periods. Financial data is very important when it’s timely. Schedule a Free Financial Analysis Today

Therefore, the sooner you can analyze and review how your business performed, the sooner you can make crucial decisions. Ideally, the completion of bookkeeping should occur no later than the subsequent month. Make sure you ask a potential bookkeeper when you can expect completion each month.

#7. Is my data protected?

People often overlook this piece of information when hiring outsourced accounting services. Beware that you might lose crucial financial data if your bookkeeper doesn’t find it necessary to back up your work. You can’t afford such a mistake, so ensure you find out how the professional will secure and store your information.

Final Thoughts

Accounting is a significant function for businesses, so it’s important you find a suitable person for the task. While there are many other considerations to keep in mind when outsourcing your accounting, these guidelines will help get you on the right path.

Limitless Investment & Capital Outsourced Accounting Services in Denver

Limitless Investment and Capital specializes in small business accounting service in Denver. Our CPAs can help put the proper accounting systems in place to provide essential information to small business owners resulting in business growth. If you are looking for unbeatable outsourced accounting services in Denver, then contact us TODAY!