Understanding the Types of Online Bookkeeping Services

Most small and mid- size business owners are out shopping- shopping for online bookkeeping services providers; who wouldn’t? They are cheaper, more efficient, productive and most importantly, relieves you of the headache of maintaining your books, which means you can focus on core business functions.

However before you decide on an online bookkeeping services provider, you need to understand that there are three different types of such service providers. Understanding these types will leave you in a better position to decide which one best suits your needs.

Chalkboard "Outsourcing"

  1. USA Based Online Bookkeeping Services– Companies that are entirely based in the US fall in this category. Such companies are reliable and have strong business foundations. They are generally quick to respond to queries, provide good customer service and quite efficient.
  1. USA Based Stay- At- Home Bookkeepers– You will find that quite a number of bookkeepers and accountants run their businesses from home; all that they need is a sturdy internet connection, a laptop and a phone. Stay- at- home bookkeepers are preferred by numerous business owners because they are cheaper since they don’t have overhead costs. The only problem here is that since it is mostly a one- man show, the bookkeeper can get bogged down and in case your bookkeeper falls sick, you have no one else to turn to.

Types of Online Bookkeeping Services

  1. Offshore Online Bookkeeping Services– There are numerous offshore online bookkeeping services available nowadays. While there is a lot of scepticism about the wisdom in outsourcing financial records to offshore services, they are preferred because they are cheaper than US based service providers.

Outsourcing your bookkeeping to any online bookkeeping services is risky business. The only thing you can do is do your research, talk to your peers and analyse your options before taking a decision. What works for one may not work for another, so choose wisely- know your business and your bookkeeper. Remember that it is vital that you can trust your bookkeeper.