Most small business owners tend to do their own bookkeeping. It’s a viable solution as they may not be making enough in the beginning to hire a bookkeeping service. As the business grows, they inevitably feel the need to opt for either a conventional accounting service or an online bookkeeping service.
The trend these days is heavily in favor of virtual bookkeeper services as they deliver significant benefits over conventional options. An online bookkeeping service will be much more affordable compared to a traditional bookkeeping company. It’s also easier to integrate with your workflows and is generally more efficient.
These services can thus provide businesses with the support they need to keep on top of their business finances, freeing them up to focus on further growing their business. Curious how an online bookkeeping service can help your business? Keep reading to find out just that.
Why Would You Use Virtual Bookkeeper Services?
Bookkeeping is an important part of running a business. It sorts out everything in balance sheets and income statements, thus enabling you to make informed business finance decisions. It also helps make things less stressful during tax season.
This also helps you form an objective understanding of your business’s spending. The books aren’t prepared by someone who’s heavily involved in the day to day operations of your business. All of the reports created for you will provide a clearer picture of the business’s financial standing.
Businesses of all sizes can benefit greatly by opting for a virtual bookkeeping service. Cost saving is perhaps one of the biggest benefits. Hiring an internal bookkeeping team is going to cost far more than the virtual option. It’s also more convenient than a conventional bookkeeping company. There’s no need to make appointments to visit your bookkeepers in person.
Virtual bookkeeper services make your business finances available to you at a touch of a button. These cloud-based solutions make it possible to keep an eye on your finances in real-time through apps, web platforms, and even email updates.
What Can You Expect When You Hire a Virtual Bookkeeper
Convenience and accuracy. This is what you’ll feel most prominently once you hire a virtual bookkeeper. You’ll have the peace of mind knowing that nothing is going to slip through the cracks and that from now on you will have stress-free access to financial records that help you make informed decisions.
Improved Accuracy of Financial Records
If you have been doing it all by yourself, keeping accurate books will become a challenge when your business grows. Not only is it going to eat up a lot of your time and energy, thus preventing you from fully focusing on growth, but it may also cause you to make inaccurate income and expense entries. This will lead to a big headache come tax season because then you’ll need to pay a lot of money to an accountant to go back and clean up your books.
Working with an online bookkeeping company will take all of this stress away. All of your transactions, whether digital or cash, will be logged accurately through the accounting software they use. Expenses can also be tracked seamlessly so that you always know exactly what the financial health of your business is.
Time is money and when you’re pushing hard to scale up your business, you need all the time you possibly have to focus on that goal. Having to spend hours sorting through receipts and bills just so you can balance your books will be a major hindrance.
Even if you have multiple people on staff that could help out, it’s ultimately going to hit everybody’s productivity. Once you move all of this over to an online bookkeeping service, you and everyone else on your team are free to focus on more important things.
Lower Operating Costs
All businesses benefit from reduced expenses and since you’re not responsible for the online bookkeeping company’s overheads, your business doesn’t have to bear that cost. An in-house team would require you to invest in a bigger office space in addition to spending more on salaries and benefits for new employees.
Virtual bookkeeping services are fully remote so whether you’re a one-person operation or have many members on the team, your books are kept with incredible accuracy without additional burden on your business expenses.
Access to Financial Records
It probably won’t be right to call up your bookkeeper if you want some specific data or report after office hours. This means you’ll need to wait until the following day or if it’s the weekend, until Monday. You’ll end up wasting precious time in between and potentially miss out on opportunities.
Virtual bookkeeping services are very technology-forward. They utilized the power of the cloud in addition to advanced accounting software to provide 24/7 access to your financial records. All of the data is presented in powerful dashboards that let you dive deep into your finances, pull up detailed reports, and keep an eye on trends. You’re thus able to make informed decisions more quickly, no matter the time or day.
Professional Financial Advice and Guidance
Businesses of all sizes can benefit from professional financial advice. An outsider’s view can often help business owners with their tunnel vision, enabling them to see things from another perspective. Virtual bookkeeping isn’t just about tracking your income and expenses. These services can also provide an expert review of financial reports and CPA consultations so that you’re ready to tackle the tax season without much stress.
It’s possible to misplace receipts and bills, leading to potential breaches of the business’s security and privacy. That risk is mitigated by using a virtual bookkeeper as all of the data is processed and stored in the cloud. It also limits the number of people that have access to the data, thereby ensuring a higher level of security.
Virtual Bookkeeping Helps Unlock Your Full Potential
There’s no denying the fact that accurate bookkeeping is an absolute necessity for all businesses. It’s impossible to grow and remain compliant with tax obligations without it. You can’t keep doing it yourself as your business grows and hiring an in-house team to manage it can be very costly.
Virtual bookkeeping lets you unlock your full potential by allowing you to focus on growing your business. All of your finances are diligently managed while you retain real-time access to the data, allowing you to make informed decisions that help take your business to new heights.
Experience it for yourself with doola Bookkeeping. This stress-free virtual bookkeeping service is used by thousands of busy founders across the globe to accurately track their expenses and sail through the tax season.
How much does a virtual bookkeeper cost?
A virtual bookkeeper costs less than a conventional bookkeeper. An online service like doola Bookkeeping costs between $500 – $1800 per year.
What services do virtual bookkeepers provide?
The services that virtual bookkeepers provide include the categorization of business transactions, reconciliation of accounts, financial statement preparation, and more.
Is a bookkeeper cheaper than an accountant?
A bookkeeper is generally less expensive than hiring a full-fledged accountant, as their primary responsibilities differ.
Do bookkeepers do tax returns?
Bookkeepers provide a wide variety of services in addition to tracking income and expenses. They can include the preparation and filing of tax returns.
Do I need to give my bookkeeper a 1099?
You don’t need to give your bookkeeper a 1099 if their payment is below the minimum reporting threshold which is $600 for most types of transactions.