How to Choose the Right Bookkeeping Company for Your Business

If you’re like most business owners, bookkeeping probably isn’t your favorite thing to do. In fact, it can be downright daunting and frustrating. However, with 82% of businesses failing because of cash flow issues, bookkeeping is something you don’t want to overlook.

If you find keeping accurate books a bit too taxing, consider outsourcing to a bookkeeping company. A bookkeeping company will help you stay organized and on top of your finances so you can focus on what you’re good at, running your business.

The problem is, with so many bookkeeping firms, finding the right one for your business can be a tad difficult. This begs the question, how do you find the best bookkeeping company for your business?

In today’s post, we’ll be highlighting some tips on how to choose the right bookkeeping company for your business.

What Is Bookkeeping?

Bookkeeping describes the process of recording, classifying, and summarizing financial transactions. In doing so, businesses can get crucial information for making business decisions.

The bookkeeper enters into the accounting system all records of an entity’s transactions. This includes sales receipts, invoices, payment vouchers, and collections. Once these documents are brought into the system, the bookkeeper organizes and classifies them.

After bookkeepers classify all transactions, they will then summarize them in reports. The reports show how much money the business has earned or spent over a period of time. This information is useful to management when making decisions about where to allocate resources.

How to Choose the Best Bookkeeping Company

With that out of the way, let’s now look at how you can pick the best bookkeeping firm to organize your company’s finances. When looking for a bookkeeping service, there are a few factors you need to consider to find the best one for your budget.

Your Bookkeeping Needs

Before finding a bookkeeping company, establish what exactly your business needs from a one. This will help narrow down your options to agencies that can meet your specific requirements. A few things you need to have down pat include:-

  • The scope of bookkeeping work
  • Your budget
  • Whether you require any specialized tools
  • Your company’s goals

You’ll be better placed to find the right bookkeeping service once you have the above information at hand. So, get all the prerequisite information before you start looking for a bookkeeping firm.

Check the Company’s Experience

The bookkeeping industry is quite competitive, and new companies are always springing up. While it’s not necessarily a bad thing, you should be wary of working with a bookkeeping company that doesn’t have much experience.

It would be best if you chose a bookkeeping agency with at least five years of industry experience. That way, you can leverage their hands-on bookkeeping experience and benefit from their high-quality bookkeeping services.

It’s worth noting that experience in bookkeeping means a lot more than just the number of years the agency has been in service. It also means how many clients the bookkeeping company has had under its wing. As such, ask to see the company’s portfolio to get a good idea of who you’re dealing with.

Check The Agency’s Team of Experts

Naturally, you’d want the right qualified professionals to handle your business’s books. As such, you want to make sure that the bookkeeping company you’re planning to hire has a diverse team of experts. This includes CPAs, bookkeepers, and accountants on its payroll.

These professionals will work together to deliver high-quality bookkeeping services. You can check the agency’s website to see the qualifications and experience of their bookkeeping team.

A bookkeeping company with a rich team of experts is more likely to offer quality bookkeeping services as compared to one that doesn’t.

Check Their Performance History

Checking a bookkeeping company’s performance history will help you know whether they’re up to the task. The last thing you want is to hire a bookkeeping firm that doesn’t have a good track record.

Reputable bookkeeping firms will be more than happy to furnish you with copies of their portfolio. With some, you can easily find their portfolios on their websites. Check whether the bookkeeping firm has worked with some of the big names or with other companies like yours.

Check Online Reviews and Testimonials

Reviews and testimonials are first-hand accounts of previous clients’ experiences with the bookkeeping company in question. These reviews and testimonials let you learn volumes about the bookkeeping company you have in mind. You can learn about their bookkeeping services, team, client support, and what makes them stand out from the rest.

When checking online reviews, pay attention to both the positive and negative ones. In most cases, a bookkeeping company with more positive than negative reviews is a good sign that they offer quality bookkeeping services. A word of caution though- don’t just take the bookkeeping company’s word for it.

It’s not uncommon for some bookkeeping firms to write their own reviews and dupe unsuspecting clients. That’s why you also want to check out reviews on authority review sites like Yelp or the BBB. At least they have verified, honest, and unbiased reviews.

Check the Company’s Data Security

Bookkeeping involves handling super-sensitive data from different companies. It would spell bad news for the companies should their data fall into the wrong hands. That’s why it’s important to find a bookkeeping company with a robust data security setup.

The bookkeeping company should have state-of-the-art security features to protect your data from prying eyes and hackers. They should also have a sound data backup and recovery plan in place to safeguard your data in case of an emergency.

It’s worth noting that cyber-attacks are set to cost the country a whopping $10.5 trillion by 2025. A single data breach could mean lots of money down the drain for your company. You shouldn’t compromise even the least bit when it comes to the bookkeeping company’s cybersecurity.

Proper Understanding of Technology Stack

Bookkeeping has changed a lot over the years, with technology playing a big role in its transformation. You want to find a bookkeeping company that is up-to-date with the latest bookkeeping technologies.

Find a company that has invested a considerable amount into automating as many bookkeeping processes as possible. This not only saves time but also reduces bookkeeping errors. Some of the bookkeeping technologies you should look for include cloud, catchup bookkeeping, mobile bookkeeping, and data analytics.

Apart from being up-to-date with the latest bookkeeping technologies, the company should also have a good understanding of your business’s technology stack. They should know how to integrate their bookkeeping software with your company’s existing software.

A bookkeeping company that understands and makes use of technology is more likely to offer quality bookkeeping services as compared to one that doesn’t.

Find a Company You Can Trust

Although it’s difficult to quantify trust, you need to find a company that you can trust. Schedule an in-person consultation with the company reps and figure out whether they’re people you can trust.

You can also tell whether a bookkeeping company is trustworthy based on how long they’ve been in business and the number of clients they have. Chances are that a bookkeeping company that has stayed in business for a long time and has many clients must be doing something right.

Also, take note of how the company communicates with you. Are they prompt in replying to queries and do they fulfill their promises? Find a company that you can communicate with seamlessly and lives up to its word.

Check Their Transparency

You want a bookkeeping company that’s transparent with you from the get-go. The bookkeeping company should give you a detailed breakdown of their bookkeeping services and what they entail.

They should also show you how much their bookkeeping services cost, without withholding any hidden charges. The pricing should be in line with the quality of bookkeeping services they offer.

A good bookkeeping company should also give you a clear idea of what to expect from their bookkeeping services. They should set realistic bookkeeping goals and let you know whether they can achieve them. This transparency will go a long way toward helping your company make well-informed decisions about its goals.

Check Their Turnaround Time

A bookkeeping company with a fast turnaround time will help give you the edge over your rivals. That’s because you’ll be able to get critical bookkeeping data and information quickly. You can use it to make informed business decisions faster.

What’s more, a bookkeeping company with a slower turnaround time is more likely to make mistakes. Also, the longer it takes them to complete bookkeeping tasks, the higher your bookkeeping costs will be. When looking for a bookkeeping service, a fast turnaround time is non-negotiable.

Only the Best Bookkeeping Company Will Do

Use the information above to find the best bookkeeping company for your specific business. Remember to explore all your options before making your final pick. If you’re looking to take your company to greater heights, then settle for nothing but the best!

Lucky for you, the best bookkeeping service is only a phone call away. Contact us today for professional and expedient bookkeeping services.