Outsourcing and bookkeeping… two words you may not have thought to put together before. Maybe you feel like you just need to hire a full time bookkeeper. Or maybe you don’t see how it can be done with someone not physically sitting in your office. In reality, outsourcing your bookkeeping to a company who specializes in construction financial management is one of the best things you can do for your company.
Let’s talk about what to expect when you outsource managing your finances. It is important to note that not all bookkeepers are the same. Some are strictly data entry and will make sure that your financial data is recorded. Some go the extra mile to make sure that they are correct. And, some will go a mile even further and will take the time to know your company, your projects, your vendors, your software, and how you want to run your business. When you have a question about financials, your bookkeeper should be able to confidently answer it. Entering data is and will always be a big part (and important part) of the process but the extra value of them knowing your business makes a huge difference.
For the purposes of this article, this is talking about the latter. Here are a few things you can expect when outsourcing your bookkeeping and financial management.
1. Evaluation
First off, your outsourcing partner will need to evaluate your current processes and financial situation. This means taking a look at how many transactions per month, bank accounts, credit cards, etc. that you have, basically to determine the volume of work that will be required. They will want to understand how your processes, such as accounts payable and accounts receivable, and how it is managed in your business. The goal of the evaluation phase is really to get a clear picture of how your finances are currently being managed to determine how they can best meet your needs.
2. Onboarding
As with anything, there will be an onboarding phase. Many details are discussed, such as what type of accounts you have, how they are organized and general questions about your business. Expectations are also identified for the upcoming weeks as your bookkeeper gets into the “weeds” of your finances. You would also need to provide items including:
- Access to accounts
- Access to software
- Credit card statements
- Bank statements
- Receipts and other backup documentation
3. Transition
Warning! When you are in the process of transitioning your bookkeeping and financial management to an outsourced partner, it may feel uncomfortable at first. There will likely be growing pains and it may feel like it is more work at first. Stick with it here. This is all because it is new and is a time to work out the kinks in the process; not that it won’t work or it will always be like that. You’ll be up and running in no time, but being patient through this process is key.
4. Ongoing Monthly Bookkeeping
Again, don’t let the term “bookkeeping” fool you. It does not always mean just data entry. It is so much more than that and when you do not have to do it yourself, get the reports you need to run your business, AND you are able to trust them, that is when you will understand why outsourcing your bookkeeping makes 100% sense.
What can you expect:
- Less stress and worry about your finances
- Bills will be paid = happy vendors and subcontractors
- Transactions will be reconciled
- Accurate, timely financial reports
- Better cash management = positive cash flow
- Better understanding of what your spending
- Manage costs accurately and against the proper projects
- Current bank and credit card registers
Knowing that your finances are just handled, is such a stress reliever for so many construction business owners. It may not always be at the forefront of your mind, but you will realize when you do not have them weighing on you anymore.
Get in touch with us to hear how 24hr Bookkeeper can help manage your monthly financials and take a load of stress off your shoulders!
