Many small business owners want to hire a full-time bookkeeper but don't have the budget to get in-house experts. So they often do their own bookkeeping or outsource it to a part-time bookkeeper. But what online bookkeeping and accounting services should you expect?
In this blog post, we'll take a look at why outsourcing your bookkeeping can be a great option for small businesses and discuss some of the benefits of doing so. So read on to learn more about outsourced bookkeeping services and see if they might be the right fit for your small business!
Why Outsource Bookkeeping Services?
The advantages of outsourcing bookkeeping services are becoming more widely understood by small business owners today. Once reserved for big businesses, mid-market, and enterprise companies, these advantages are now being enjoyed by smaller businesses as well. What benefits can day-to-day operations with an outsourced bookkeeping service provide?
Cost-Cutting
The number one reason many small businesses avoid bookkeeping service providers is the lack of means to pay them. However, your business can save more than 40% with virtual bookkeeping services. Plus, you can avoid the overhead costs associated with maintaining an in-house accounting or bookkeeping department.
These are just some costs of hiring an in-house professional:
- Hiring and recruiting expenses such as screening interviews and training
- Payroll taxes
- Retirement plans
- Insurance and other benefits
- Paid sick leave and vacation days
On top of that, you need to consider the office space and equipment your in-house dedicated bookkeeper would probably need.
Flexibility
As an online business owner, you know that every minute counts. And because an outsourced bookkeeping solution is available 24/7, there's no downtime in handling your business finances or inconvenient trips to and from the office. Any task can be handled quickly and efficiently, from setting up your books to preparing for tax season.
Centralized Bookkeeping System
Centralized bookkeeping is a godsend for ecommerce businesses. Imagine having all your bookkeeping and accounting tasks performed by a professional, highly skilled accounting firm with cloud-based accounting software that can store an immense amount of financial data. That is the power of outsourcing. You can be confident that your books will be accurately kept and that any compliance issues will be dealt with quickly and efficiently.
Data Security
The advantages of online bookkeeping services are obvious: You get access to experts at a fraction of the cost of hiring in-house accountants, and you free up your staff to focus on other administrative tasks. But one of the most often overlooked benefits of outsourcing is increased internal control.
With a team of financial experts managing your transaction processing and reports, you're far more likely to spot anomalies. And while fraud can never be ruled out 100%, a virtual bookkeeper will have less access over your books to commit fraud.
Accounting Services You Can Outsource
Depending on the size and complexity of your online business, you may need to outsource some or all of your bookkeeping tasks. Fortunately, the best outsourcing company can offer flexible accounting and bookkeeping. But what services should they be offering for you to make the most out of their offerings?
Bookkeeping
Managing your finances starts with accurate bookkeeping, from daily to monthly tasks. What exactly do bookkeepers do?
Weekly
- Timely deposits
- Send invoices
- Categorize transactions
- Create journal entries
- Review inventory
- Prepare for financial reporting
- Check timesheets for payroll
- Bank reconciliation
Monthly
- File taxes for payroll
- Send out invoice reminders
- Create financial statements such as balance sheets, cash flow, and P&L statements
Accruals Management
If you're using the accrual method for financial records, outsourcing your accounts receivable and accounts payable management to a virtual bookkeeping service can save you valuable time not only with the long AR/AP process, but with managing your bills with your vendors and collections from your customers.
They can also give you real-time visibility into your AR/AP status, so you can always stay on top of what's due and when. All you'll have to do is approve their payments.
CFO Services
Virtual accounting services can provide advisory services such as invaluable insights into the financial performance of your business and offer strategies for maximizing your profits. These expert accountants can help you navigate the complex world of taxes, financing, and strategic planning.
Cost Accounting
Expenditures from different areas of your business operations are monitored and adjusted according to your budget. Basically, cost accounting is expense tracking on a deeper level. Most business owners don't need the whole accounting firm to work on this accounting service. Thus, it's quite convenient and, once more, money-saving.
Tax Preparation
Perhaps, you're wondering that tax services from an outsourced accounting team might not be able to give you the best output for tax filing since they might not be aware of the federal, state, or local tax laws.
But you'll be surprised to learn that online accountants are updated with the tax compliances, especially special tax laws for ecommerce businesses. Expert accountants have the know-how with hacks to minimize your tax liability and maximize your deductions.
Payroll Services
No matter how small your entire team is, processing your employees’ pay might be the second tedious accounting task you need to accomplish, the first being filing your tax return. But with an online bookkeeping service, you'll have great results when working with the best accounting software, such as QuickBooks Online.
With both outsourced services and payroll software, you don't have to worry about your employees being paid accurately and on time and that taxes and other deductions are being properly withheld. Optimized CRM features can also provide valuable insights into employee behavior and performance.
Financial Analysis
Whenever growing businesses lose their way, it pays to make financial forecasts and assess financial statements such as balance sheets to evaluate their whole operation and correct necessary areas in their finances.
Approaches for financial analysis range from debt-to-asset ratio to trend analysis. With the right outsourced accounting department, you can improve your online business's bottom line and prevent sudden plunges in cash flow in the future.
Outsource Bookkeeping Solutions From Unloop
So, should you hire a remote bookkeeper and accountant instead of a local bookkeeper? Yes. Imagine the accounting tasks we mentioned handed over to more qualified financial experts. Say goodbye to blindly managing your finances and say hello to positive cash flow—all thanks to convenient services like Unloop.
Here at Unloop, we provide outsourced financial services that can take care of all your bookkeeping and accounting needs, and even more complex financial tasks so you can focus on what you do best—growing your business. If you're interested in learning more about our services or would like to schedule a call with one of our team members, contact us today.