Although our business had humble beginnings, we have been able to witness it grow and flourish with patience and passion. Although it may have been logical to manage your financial records yourself at first, is it time for you to partner with an online bookkeeping service?
Virtual bookkeeping can offer all the same benefits as an in-house bookkeeper but at a fraction of the cost. These specialized services can assist you in running your day, preparing your annual taxes returns, and all other tasks.
We’ll be taking a look at the basics of bookkeeping and how to find the best bookkeeper for your company.
What does a bookkeeping service do?
Accounting services and bookkeeping help you manage and plan your company’s financial processes and keep you in control of your finances.
Services typically include the following:
- Monitoring income and expenses
- Cash flow management
- Payment of bills
- Planning and tax preparation
- Reconciling bank statements
- Financial planning
- Payroll Management
- Generating financial reports
A bookkeeping service typically offers three levels of support for managing your company’s books. The bookkeeping software specialist will create the first tier, which is a customized file tailored to your business’s needs.
The full-charge bookkeeper is the second tier. This person will perform many of the tasks described above. They are available to assist you in the event of an audit and can help with long-term planning for optimizing your tax returns.
The controller is the third tier. This is responsible for increasing your company’s financial accountability as well as ensuring that your financial statements are accurate. It can also produce regular, often monthly, financial reports and bring up any issues.
Maintaining Your Financial Records in Order
Bookkeeping online services can be a valuable help in organizing and maintaining your financial records. This is especially important for tax planning and strategy. You can leverage your receipts and financial records to reduce your tax debts, and increase your chances of a return.
Many business owners are concerned about giving their confidential financial information to a third party. They fear that this could limit their access to their data or expose their business to hackers and cybercriminals. The truth is that the reverse is true. Virtual bookkeeping companies offer advanced accounting software that allows small businesses to have greater access to their financial information while keeping it safe on a secure server.
Do you need a bookkeeper or accountant?
Many small business owners attempt to save money by managing their own books. Although this may sound like a cost-saving tactic, it can come with a steep price.
Your business’s revenue-generating activities should be your primary focus. Focusing on administrative details could actually hinder your business’ growth.
A dedicated bookkeeper can assist you in managing your cash flow, paying bills, handling payroll, as well as other tasks. A bookkeeper can not only take on these responsibilities but can also help you to plan your business and prepare you for future growth.
What Does a Bookkeeping Services Cost?
Business owners often hire bookkeepers as one of their first employees. The cost of hiring an in-house bookkeeper is often prohibitive.
The Institute of Certified Bookkeepers reports that bookkeepers in Australia start at $60 an hour. Advanced services can cost up to $80 an hour.
This compares to the low monthly rates of today’s online accounting and bookkeeping services. For a few hundred dollars per month, you can outsource your bookkeeping services to an online bookkeeper. You can save thousands of dollars compared to hiring full-time employees.
The following factors will influence the monthly price in most cases:
- Your business’s size and revenues
- Services you require (tax planning is usually more expensive)
- A dedicated bookkeeper will give you the personal attention that you deserve
- Communication options between you, your bookkeeper
Even the most costly bookkeeping services are still significantly cheaper than hiring your own bookkeeper.
What can a bookkeeping service do for your business?
Many entrepreneurs are attracted to the low cost of bookkeeping services. Partnering with an online bookkeeper can have many benefits for your business.
These benefits include:
- Specialized skills and niche experience
- Reporting speed increases
- Access to financial data, and monthly reports
- Support and financial guidance based on your individual needs
- Get the most recent financial software
- Consistent communication
It’s like this: What happens to your books if your in-house bookkeeper goes on vacation or takes ill? You will likely slow down until your in-house bookkeeper returns to work. This can be a problem in today’s fast-paced business world.
Virtual bookkeeping services can keep your business running 24 hours a day, 365 days per year.
It’s also unlikely that an in-house bookkeeper has the same level of expertise or education as an online team. An online partnership gives you access to more financial professionals and may allow you to deal with unique or complex issues.
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How do you choose the right bookkeeper?
How can you find the best bookkeeping service for small businesses? It can be difficult to narrow down the options. Before you partner with an online bookkeeper, there are a few key points to remember.
You need a company that is familiar with your industry. A restaurant’s financial needs may be different than an online retailer’s. Bookkeeping services that are able to take into account these special needs and offer guidance and service that is tailored to your business will be a good choice.
A company should be able to scale with your business. Your business will grow, and so will your requirements. Your accounting and bookkeeping professionals may be more in touch with you, or you might need additional advice regarding tax strategy.
A company that is able to adapt to your business will be the best choice. One that can help you set new standards and get there.
A company should be clear and direct. It’s possible that you will need access to vital data or have questions about your financial health. A company that offers easy access to your data via accounting software is a good choice.