Reasons why small businesses choose to go virtual over hiring a bookkeeper.
As we move further into the internet age, many aspects of business are becoming digitised. One such area is how businesses handle their bookkeeping requirements. “Virtual bookkeeping services are scary, they’ll not work”. This is a common misconception of those who have not tried the various online accounting services. But as soon as they’ve signed up for a virtual business accounting service, they soon realise the benefits of it.
In the article, we’ll focus specifically on the how choosing to go virtual over hiring a bookkeeper can save your small business.
Hiring a bookkeeper
One of the benefits of hiring an on-staff bookkeeper is that you have an additional staff member on your team that can contribute to corporate culture and help boost morale around the office. Hiring the perfect employee for any position is difficult but assume you can find the perfect bookkeeper, then cost becomes the primary consideration of whether you can afford to bring them on.
Another consideration when hiring a bookkeeper in your small business is their available workload. Depending on the business’ needs and the capability of the bookkeeper you hire, one employee may not be enough. The need for multiple accountants usually signals that your business is doing well enough to staff several, but that is not always the case, and not always the way to get the best value for your money.
How then can virtual bookkeeping services save your business?
#1. Save overall cost
Have you considered how much you are paying you in-house bookkeeper? A virtual bookkeeper will cost you less. You need not disturb yourself with running background checks, provide ongoing trainings, etc. The online small business accounting services will handle that for you. On a large scale, you get to save 30–50 percent the entire cost of hiring an in-house bookkeeper and using traditional bookkeeping infrastructure. This is because online bookkeepers work remotely and you’ll not have to process their payroll taxes, payroll holiday time or provide other benefits.
With this in mind, you are not only getting great value for your money but you will actually obtain a very experienced and efficient bookkeeper that will help you with you small business.
#2. Focus will be on growing and improving your business
Hiring a virtual bookkeeper will boost your company’s productive time as you do not have to spend all day on bookkeeping tasks. You can actually decide how many hours a virtual bookkeeper can spend working on your financial report as online accounting services have fixed fees, which depends on the transaction volume and the package you choose. This way, you’ll know the overall cost of the transaction even before your sign up, making it easier for you to work within your budget. You can easily run your business and focus on other things to grow your business because you know that your bookkeeping is taken care of by a trusted online accounting service. You’ll have peace of mind so you can gather the needed resources to grow your business.
#3. Stay up-to-date.
Virtual accounting services will provide you with updated financial reports anytime you need to monitor your company’s financial health. This way, you stay updated and you can stop spending money you don't have or know when you can spend to take your company to the next level. Virtual bookkeepers understand the importance of financial reports and statements in running a business and with the up-to-date financial repots they send, you can efficiently use them to know whether or not your business is running smoothly or needs adjustments. With this, you can easily minimize your tax liability and also make key business decisions that can support your company’s growth.
#4. Obtain genuine opinion.
How often do you ask your company’s bookkeeper about its financial status?
With a third-party involved, you get a genuine opinion of your business. Since the third-party is not involved in your company’s inner workings, they can give you better opinion on your business and the recommendation they'll offer will not be self-serving but for the benefit of your company as they are not influenced by the desire to improve their in your organisation. With that, you can start making decisions that can surely make a positive impact in your business.
#5. Proper cash flow management.
Even though you see an excellent cash figure, you cash could be all tied up in your account receivable due to shortages from ineffective accounts receivable procedures, you just convert receivables into cash. With an accurate bookkeeping system, you can easily look into your finances and evaluate whether or not you are making enough profits from your business. Having a properly managed cash flow will enable you reduce your outstanding receivables. When you maintain a proper bookkeeping system, you can avoid a negative account balance and avoid fees piling up.
Finally!
Bookkeeping needs to be prioritized. If you are leaving the financials of you business to pile up or passing them to someone who doesn't understand the principles of bookkeeping and how they can harness the benefits to improve your business, you’re putting your business at risk and missing out on many opportunities. You need to decide who will handle the financials of your company. There is no other answer than going for an outsourcing accounting services or better still, hiring a “Virtual bookkeeper”.
