Keeping accurate business records is crucial for company success. Although accounting is an essential function, ignoring it or doing it casually can have a negative impact on your business in the long term.
When you first began your company, it may have made sense to handle your bookkeeping and accounting by yourself. Keeping costs down was probably a smart move. However, you might have soon realized that you needed some assistance.
It is true that having a qualified bookkeeper on your team is the best way to keep your financial records in order. But, given the resource scarcity, small-mid scale businesses do not necessarily have to allocate resources to employing an in-house bookkeeper.
Instead, they can avail online bookkeeping services to drive fortunes for their business.
What is Online Bookkeeping?
Online bookkeeping or virtual bookkeeping is a service that permits experienced accountants to provide routine accounting services to businesses remotely. Online bookkeeping is accessible remotely, providing businesses convenient, shared access to accounting software and financial documentation via a secure portal.
A virtual accountant records a company's day-to-day monetary transactions, as well as performs important bookkeeping duties such as:
Paying bills and invoicing clients
Remitting tax returns
Reconciling bank and credit card statements
Virtual bookkeepers can create monthly and yearly financial reports and work with your accountant if needed.
11 Reasons Why You Should Go For Online Bookkeeping Services
Businesses are increasingly going digital, choosing online accounting and bookkeeping services to handle their needs. There are good reasons for this, as online bookkeeping provides a variety of advantages.
Let's discuss some of those advantages:
The current era is of specialists, not generalists. Your business may have unique requirements that require a specialized set of skills. It's unusual that a staff accountant would have experience in the kind of niche areas your firm requires.
Conversely, online accounting firms are experienced in several domains as they work with multiple clients. Generally, online bookkeeping service providers are specialized in the following areas:
Personal financial planning and assistance
It makes sense to use an online bookkeeping firm for some of these repetitive tasks, such as your yearly tax preparation. This means that you don't need to employ a full-time certified public accountant (CPA) to obtain the services every time when you need them, so consider your options.
According to the Journal of Accountancy, a CPA's annual salary is over $100,000, the New York Times. A full-time bookkeeper may be less expensive, but your company might still be looking at spending over $40,000 per year on their services, as reported by the U.S. Department of Labor Statistics.
Remember that these salaries are just a starting point. You also need to provide employment benefits if you hire a full-time employee. You may even have to modify your facilities in order to provide an office or similar working environment.
It's true that you won't be managing the books using a CPA, but you'll still have to hire a new employee.
Would you rather swap one responsibility for another or outsource your company's accounting needs to an accounting firm? Online bookkeeping services can be surprisingly economical, avoiding the overhead of employing a regular employee.
You won't have to worry about the costs associated with setting up an office or working station, either, if you use an online solution for your financial needs, allowing you to cut costs in every area.
Offers On-time Financial Reporting
Achieving success requires being on top of the small stuff. And having as much knowledge about your business's financial health as possible is an important part of the process.
Online bookkeeping services provide you with the latest data in a timely manner, saving you time and, of course, paper. Many of these reports help you identify areas in which your company can improve, which is why you need to obtain them in real time.
Integrates Inventory Reporting
You may integrate your legacy inventory management software with online bookkeeping software, which usually includes inventory management basics. These tools can be a wonderful aid when it comes to keeping your shelves stocked and your orders moving.
An online bookkeeper can save you the time and hassle of managing inventory, as well as help your company grow. You can get data faster, which means you can send invoices and receive payments more rapidly. Looking ahead is even simpler with the help of an online bookkeeper who can provide you with information.
Maintains Accurate Books
It's important to note that there are no advanced professional standards for bookkeeping apart from CPA certification. While bookkeepers are often well educated, becoming a CPA doesn't require an advanced degree.
That's not to say that most CPAs don't perform well. But, if you're looking to save money by hiring a junior accountant or a financial novice, you might inadvertently end up with inaccurate financial records. You might also end up with inaccurate financial records if you handle your own books, especially if you can't give them your complete, undivided attention.
Maintaining accurate books is crucial for the efficient management of your business. Keeping records accurate is also crucial for audit purposes, particularly when it comes to tax preparation or other financial audits. Errors in tax forms, for example, might result in penalties or other fees that might otherwise be avoided.
If you want to guarantee that your future financials are error-free, an online bookkeeping firm can audit and troubleshoot your books, ensuring you're back on track.
Offers Expert Team
Virtual bookkeeping companies employ the finest and brightest accounting professionals. Having an expert crew behind you can provide the assurance that your company can thrive and that you will have the dedicated support you require for any fiscal transformation.
You can rely on an expert team to provide you with the latest bookkeeping best practices and financial software. Online bookkeepers like us can provide you with consistent, efficient reporting and financial analysis using the tools.
Small business owners may not be able to afford expert-level bookkeeping services, but online businesses can provide you with top-quality care and insight at a tiny fraction of the price of hiring an employee. With your financial needs balanced between quality and affordability, you may lack the funds to hire an employee, but you can still receive top-tier care and insight.
Maintains Consistent Communication
Being able to access financial data during normal business hours is what makes information so useful. However, if you are working with a staff accountant, you will only be able to access data Monday through Friday from 9 to 5.
But what if you need a piece of information when your accountant is off the clock?
This isn't a hypothesis. Businesses across the globe are operating on a 24-hour basis, resulting in evolved pressures on company owners. The global economy and a change in customer preferences have created a need for constant, regular communication.
To find a solution, you should seek the services of an online bookkeeping firm that provides round-the-clock support. You will receive regular and continuous communication via email, telephone, and other channels.
Having a digital communication solution can ensure that your accounting staff is right in your pocket, even when you're out of the office—or even out of the country. This type of streamlined communication may be particularly beneficial for business owners who travel frequently.
Leverage a Technology Platform
QuickBooks is just one example of the many digital tools and accounting software packages available. Online bookkeeping firms utilize the most recent digital tools and software packages to assist their clients in improving their business performance.
Online accounting software can take advantage of the latest virtual accounting firm resources. Online bookkeeping services can also keep you on top of the latest accounting technologies.
These accountants can adapt and innovate to ensure that your company can continue to thrive and compete in an increasingly digital world.
It is essential to keep cash flowing in a business by promptly sending invoices to clients. Receiving payments sooner can hasten the business's operations, which can contribute to its financial growth.
Online bookkeeping services can accelerate the invoicing process by automatic it. You will be able to send invoices to clients and maintain consistent cash flow across your business if you can invoice more quickly. By monitoring your income and alerting your clients to outstanding payments, you can accelerate the cash inflow even more.
Online accounting services provide personalized, custom support that cannot be substituted. Hiring a one-size-fits-all accountant is now ancient history. Modern organizations require the agility and personalization that come from a virtual firm.
An online accounting company can alter its specialized areas to fit your business, offering the usual accounting services as well as eCommerce, business software integration, and more.
Virtual financial firms offer a variety of services that you may utilize as your company grows and evolves, so you can be sure that you will always have access to industry-leading services that are tailored to your requirements.
More Time to Grow Business
Do you wish you had more time to concentrate on the things that matter? Online bookkeeping services allow you to save the time you spend on your books and worrying about tax season for greater peace of mind, as well as more time to expand your business since you most likely didn't establish your enterprise because you wanted to be a bookkeeper.
Even if you hire dedicated resources for bookkeeping, you'd have to spend time onboarding and training them. At the same time, online bookkeeping service providers can understand your needs and work autonomously.
With service providers like us, business owners don’t have to get involved in the accounting and bookkeeping operations. Instead, they can simply enjoy the outcomes in the form of insightful reports and financial health statements.
How to Get Started with Online Bookkeeping?
Small businesses have limited manpower and must focus on their core competencies, resulting in accounting duties getting overloaded. Furthermore, hiring an Accountant or Bookkeeper can be an expensive affair for a small company unless it becomes fairly large.
As an online bookkeeper, IBN's systematic accounting procedures and methods are beneficial in such situations. Our online accounting outsourcing services may assist you with your tiny growing company.
You can simply reach out to us, and we can help you with the onboarding.