Why Virtual Bookkeeping Services Are Great for Small Businesses
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Originally Posted On: https://www.maventri.com/virtual-bookkeeping-services-are-great-for-small-businesses/
Are you a business owner who is looking for ways to save time and money? When you’re running a small business, every penny counts. That’s why it’s important to take advantage of every cost-saving measure you can find. If this sounds a little familiar, you may want to consider using a virtual bookkeeping service. There are many awesome benefits to outsourcing your bookkeeping, so let’s get into it.
But First…Let’s Debunk
Before we jump into the benefits of outsourcing your bookkeeping, let us first address some common misconceptions and assumptions.
- Outsourced means foreign: No, but also technically Yes. There is no shame in outsourcing tasks abroad, but when we discuss outsourcing your books we are referring to not having them be in-house. Most commonly work is outsourced to individual contractors (we’ll get to that in a minute), but it can also be outsourced to US-Based firms (such as MAVENTRI) who have access to a team of trained experts.
- Virtual bookkeepers are a one-man show: No, but also Yes. It is a common misunderstanding that when you hire a virtual bookkeeper for your business, they are working alone. Though this is the case for some, and they prefer it that way, it is not always as such. There are plenty of firms that conduct their business online, including client meetings. This has become more prevalent, and more accepted, during the Pandemic. Some are hesitant to outsource under the assumption that these individuals or firms do not have up-to-date training or access to robust technology which can lead to mistakes. We argue that this could be the case for anyone or any business, which is why vetting is important. Again, there is nothing wrong with being a one-man show, or individual contractor, but there are certainly virtual bookkeeping firms with a team. As they say, more heads are better than one.
- You have less control: No! This should not be the case, if it is, that is a red flag. When outsourcing your bookkeeping it is important to ask questions like “What platform should we be using?” or “What level of access do you need me to provide you”. A good firm will always make sure you have 24/7 access to your financial information. With technology where it is today, cloud-based accounting software allows businesses access whenever, wherever–even if they don’t understand the data. Gone are the days of asking your accountant for a monthly report only to be surprised by your numbers.
Now, let’s get into the benefits we promised.
Improve Your Cashflow
Business costs are something that we all need to watch like a hawk, especially post-pandemic (are we there yet?). Having cloud-based accounting software like Xero or QuickBooks Online means that you are saving time in many ways. You can accept online payments faster because you are automating the invoicing process, and as many accounting providers offer simple tools to reach customers, this makes any process quick work.
A Better Picture of Your Finances
Understanding where you are in a financial sense at any time is crucial. You need to look at the best investments to keep your business moving, and when it comes to the costs of any cloud-based bookkeeping platform or virtual bookkeeping service, there is significantly less overhead involved. Business expenses in SMBs are squeezed tightly, and having less overhead, in terms of payroll expenses, means you can invest your efforts and finances in the less effective aspects of your business.
As a family-owned business ourselves, we understand how important it is to keep an eye on every expense. When outsourcing your finance practices to a virtual bookkeeping service or upgrading to a cloud-based service, the overall costs are based on your business. Flexibility is key–as your business evolves and grows, contrary to having a salaried employee, this means that your pricing is adjusted based on your current business needs.
Easy Access to Amazing Resources
Bookkeeping is not a straightforward practice, which is why many business owners outsource it to virtual bookkeeping firms. Having the right bookkeeper that has an inherent understanding of your business will guarantee that you can get a clearer picture of your business finances.
Whenever you have a question, no matter how basic it may be, you can always get in contact with the experts to get the answers you need. Keeping track of your bottom line is so important, and having cloud-based accounting software, means you can review the numbers wherever and whenever you need so you can respond to any type of challenge. When you have easy access to all the data, in combination with readily available help, you can have a clearer picture of your business.
Having access to resources that provide amazing insight is beneficial for your business dealings, but more importantly, your peace of mind. Typically, when you work with a virtual bookkeeping service, you will have access to several bookkeepers. When we compare this to an in-house bookkeeper, having more access to a wide variety of knowledge and experience seems like a better bang for your buck–right?
Although an in-house bookkeeper may be able to provide you with certain answers, sometimes having a variety of opinions and approaches gives you more options for what financial decisions can benefit your company at any one time.
A Positive Impact on the Employees
“Collaboration” is the buzzword in the modern business world, and ensuring that your employees have the space to thrive is imperative. When you have access to your financial data through cloud services, you can work with other authorized users to understand the finances of your business.
In a post-pandemic world where hybrid working is essential, there is no need for financial data to be restricted to the office environment. If there is an urgent matter, the finances can be accessed by you and your colleagues, wherever they may be.
A Better-Protected Business
If hackers gain access to your financial records, this can spell trouble. It takes more than installing an antivirus solution to look after your company. This is why if you store information in-house on one computer, a virus can easily eradicate all of that data.
Cloud-based accounting software like Xero or Quickbooks Online is safer than maintaining financial data on your desktop computer. Having data stored in the cloud means that whatever speed bumps your business hits, you will always have access to the information.
Not protecting your financial data appropriately can mean significant penalties for your business. Similarly, it can mean customers lose trust in your ability to conduct yourself professionally. Cloud-based bookkeeping is essential for any business, where every penny counts.
Keep Track of Your Business
As a small business owner, you can’t afford to be too busy with everything that needs to get done. You need to find a way to free up your time so that you can focus on what matters. Hiring a virtual bookkeeping firm is one way of doing this. It is an excellent option for entrepreneurs or small to mid-sized businesses that are looking for an affordable and easy way to maintain their books. It is also a great solution for those who have no idea how to use a spreadsheet or other accounting software.
Ensuring you remain competitive is not just about how you conduct business with your clients or customers, but it’s also how you operate in-house. Many organizations think their only option is to keep everything all under one roof. Our thought process is, if you are a small or mid-sized business and want to thrive, you need to think about outsourcing to a virtual bookkeeping service, or at the minimum look into a cloud-based accounting software solution.
So, if you are a small or mid-sized business, is it time to consider virtual bookkeeping? By outsourcing your bookkeeping needs to a virtual firm, you can enjoy all the benefits of having a full-time staff member without the overhead costs. Plus, you have access to multiple experts who can help answer any questions you may have about your finances. Contact us today for more information about how our cloud bookkeeping services can benefit your business.
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