5 Problems Solved by Virtual Bookkeeping
Updated: May 5, 2020
Are you wondering how to handle multiple locations of your business in one simple, effective way? Here are 5 common problems solved by virtual bookkeeping.
Accounting is an important part of business ownership. It covers many areas in the business. Account receivables, account payables, payroll, and taxes, are just the tip of the iceberg.
Small businesses can pay a substantial amount to hire a Certified Public Account (CPA) to handle all their bookkeeping needs, which can get expensive. Not to mention, many CPA firms prefer to offer you value-add services to help your business grow and take advantage of their expertise, rather than handle the manual task of bookkeeping.
Investing in virtual bookkeeping can cut down on accounting costs, plus bring additional benefits. Your business can run more efficiently, especially when you automate the entire process and work with a company that understands your business. If the software you choose has reporting, you can also gain valuable insights into your business.
Online accounting software has grown tremendously with the advancement of machine learning and improved technology.
Are you interested in learning more about virtual accounting and bookkeeping solutions? Keep reading to see the 5 problems you will solve by going this route.
What is Virtual Bookkeeping?
Virtual bookkeeping can be in the form of a virtual bookkeeper or software. A virtual bookkeeper is an accounting professional who does not physically work in your place of business. It could be someone who works as an independent contractor.
Virtual bookkeeping relies on cloud accounting and software-as-a-service (SaaS) applications, or virtual accounting software. With SaaS companies, you work with them directly and rely on their bookkeepers and accounting professionals along with their technology.
Virtual accounting services can streamline their accounting processes. If you own multiple franchises or operate out of multiple locations, virtual accounting is a definite plus. The problems solved here focus on hiring an accounting firm specifically.
1. Free up time to Focus on Other Projects
If there is one thing business owners rarely have enough of its time. They wear many hats when it comes to running their business. Too often things get overlooked or may not get done at all.
Lack of operating capital plays a role in what positions get filled and which ones don't.
Outsourcing then becomes a viable option.
Accounting, like IT, is important positions and one of the best choices for outsourcing. When you choose a SaaS-based accounting solution, they are responsible for bringing in qualified people and ensuring their software provides the information you need to run your business. They are also up to speed on the latest technology, laws, and regulations. Look for companies that combine their technology with people so that you can take advantage of the cost savings of technology, but have accounting professionals in place as well to ensure accuracy.
2. All of Your Accounting is in one Place
Accounting software allows businesses to have all of their accounting functions in one place and done for them. These programs connect to your business bank account and POS allowing for an additional level of accountability and insight.
You can see the health of your business all in one place. If you plan on selling your business, you can easily generate reports that show past earnings and costs as well as standard financial reports. At tax time, consolidated information will make tax preparation easier.
3. Access Records 24/7
With a SaaS-based accounting solution, although your accounting is handled virtually, you still have 24/7 access to your accounting records. Many firms offer a mobile app that allows you to check in on your finances any time, not just after the close of the month.
No more worrying about reaching a bookkeeper or accountant or not having all the data you need at your fingertips or wondering if things were booked properly.
4. Cost Savings
Going with a virtual accounting software solution is far more cost-effective. You tailor your services to your business needs. There is significant cost savings. First, you don't have staff to manage, so you no longer have to worry about someone quitting. Also, virtual bookkeeping software frees up your CPA firm to focus on more strategic work for you, also saving you money.
Another huge benefit to using virtual accounting software is knowing your data is always current and input is saved in real-time. Servers are backed up on a regular basis which eliminates concerns about lost records.
Accounting SaaS companies are committed to the safety and security of their client's information. They have their own IT protocols to provide a defense against cyber crimes and records theft.
5. No Employees to Manage
Hiring full or part-time employees mean's paying those employees according to industry standard. You also have to figure in employment taxes and workers compensation. If you want the best, you will have to provide a competitive benefits package.
Employees want to work for companies that offer medical and dental insurance, paid time off, and a 401K. Not to mention annual pay increases.
In most businesses having one person handling all your bookkeeping does not provide a checks and balances system. This means hiring two people for separate positions.
By utilizing virtual accounting services you save thousands of dollars. This is money you can use to grow your business or buy new equipment. You could also give other essential employees added perks.
Is Virtual Accounting for You?
As a business owner, you should always look for ways to operate more efficiently. Virtual bookkeeping covers a list of duties you no longer need to worry about. Hiring a software firm means you don't need to hire any staff, contract or full-time or worry about ensuring accuracy or worrying about fraud.
Get accounting duties off of your to-do list and hand it over to the professionals. Contact the Ceterus team to learn more about our accounting solutions.