Online Bookkeeping is also known as cloud accounting. This refers to when an accountant or bookkeeper works remotely with a client. Accounting software allows you and your accountant to share an account.
Online bookkeeping services are typically staffed by real individuals who will reconcile your books every month, prepare financial reports like as balance sheets and cash flow statements, and ensure that your records are in order at tax time. There are 7 advantages of Online Bookkeeping Services:-
1. Cost-Saving Accounting Services
Most businesses view outsourcing as an additional cost and thus, unnecessary. This is not the correct perception. It is actually the reverse.
Outsourcing accounting allows our clients to lower their costs, but most importantly without compromising the quality.
Outsourcing can result in significant savings. Most companies are able to offer their services at lower rates due to the lower labor costs.
Outsourcing also saves money on salaries, taxes, supplies, and benefits for full-time and part-time employees. Only pay what you use. Full-time employment does not result in productivity losses.
2. Reduce the time and costs of hiring
The recruitment process can be seen as a complex job if you look closely at the picture. You need resources to manage the process, from developing a recruitment strategy to interviewing candidates. It takes time for your company, it costs money, and you’ll need to devote the time to either the employee or yourself.
Many companies don’t consider how much time it takes to find a professional accountant. Time is directly related to costs. You must account for the cost savings associated with outsourcing business processes.
3. Save your time
As your business grows, you’ll find yourself spending less time scaling your business and more time managing your finances. Outsourcing administrative tasks such as bookkeeping and accounting allow you to concentrate your energy, time and resources on developing business strategies. This will bring in more revenue and help you network and build relationships with customers.
4. Expert accountants and bookkeepers
Outsourcing could offer the opportunity to hire a skilled professional at a lower price.
To remain competitive in the market, outsourcing accounting and online bookkeeping services firms must continuously improve their skills and qualifications. Imagine 50 people working together in one office. They can share new accounting solutions, trends, and tools. Great accounting companies also have access to more training and courses. They are actively participating in continuing education.
Outsourcing to an accounting firm also gives you access to the team. Baltic Assist offers a fixed-price company the opportunity to have a team of accountants. You don’t need one person to handle all types of tasks.
You can rest assured that the outsourcing company you choose is trustworthy and competent.
5. Scaling Accounting is Easy
Accounting service providers have the ability to scale your services quickly and without any delays. If your accounting and bookkeeping tasks are more than the required number of employees, the additional workforce can be easily enforced. You don’t need to go through a strict recruitment process.
Accounting and bookkeeping services are also available at an hourly rate. This allows you to scale up or down your hours without interruption.
6. Automation technologies
Accounting automation software is used by many businesses to save time. This software not only saves time but also reduces risk. Automating accounting reduces human error. Second, automation software gives accountants real-time reports. They help in identifying potential problems early and solving them. It will also reduce the likelihood of internal fraud.
Many accounting service providers have extensive knowledge in automation tools like Quickbooks, Sage, and Visma.
You are wasting time and money if your accountants still use Excel sheets.
7. Your advisor is an accountant
An accountant who is competent will give you sound advice about how to improve your accounting. Sometimes, he may work with several companies and offer a great experience from another client. It doesn’t matter if it is taxation, accounting software, or providing financial advice.
Why You Should Outsource Your Accounting and Bookkeeping
Based on our experiences working with various Scandinavian and Western businesses, we have found that outsourcing bookkeeping/accounting works best when:
Small businesses don’t need a full-time bookkeeper, but they do require someone with more skills than what the office manager or receptionist can offer.
No company can find a permanent employee with the right skills at an affordable price.
Growing companies are looking to expand their accounting and bookkeeping services.
Temporary services are required, such as extra help with end-of-the-year reports, or if a full-time employee is going on holiday, on maternity leaves, etc.
Even if you hire someone skilled and qualified, an executive director (usually) will still be needed to participate in the process of approving invoices, depositing, reviewing timesheets, and so on.
5 Things You Need to Consider Before Outsourcing
After you have decided to outsource, the next step is to find an outsourcing company that matches your requirements and goals. Our view is that the highest priority should be given to quality and efficiency when outsourcing bookkeeping or accounting services. There are a few other important factors to consider.
1. What accounting and bookkeeping services do you need?
Do you need someone to prepare your end-of-the-month reports, balances, payroll services, report to authorities, or take care of your receivables and payables? Perhaps you need someone to do your bank reconciliations, analysis, or simply enter the data into the accounting program. It doesn’t matter what it is, you should be clear about what you do, who you are responsible for, and what you want someone else do.
2. A wide range of competitive prices
Each accounting and bookkeeping firm has its own payment scheme. Some charge per hour while others bill every month. You can choose the term that best suits your budget and needs, but don’t base your decision solely on cost-effectiveness.
3. Expertise.
You want to ensure that the company you are considering hiring is professional, experienced, and holds the appropriate qualifications. You can always ask their clients for recommendations. Look at their market reputation, financial stability, as well as their ability to deliver consistent and high-quality results.
4. Data security
Data security is a key component of outsourcing online accounting services. This highly respected firm ensures the security of all transactions and protects client data. This is important because you will not only be communicating cash flow information but also confidential data.
5. Flexible service level agreement.
Bookkeeping and accounting service providers must demonstrate flexibility and willingness to meet your future needs. It is strongly recommended that you read the terms and conditions before signing the contract. This will allow you to know how you can terminate the agreement if they do not meet your expectations.
6 Accounting Tasks Your Company Can Outsource Tomorrow
- Bookkeeping.
- Reporting to Management and authorities.
- Services for processing payroll.
- Account payables (payments creation).
- Follow up on account receivables
- Payroll
Additional advice: You should not hire a large-five accounting firm to do an audit. You should use the other company to handle your bookkeeping and accounting functions. Independent standards and regulations within the accounting profession mean that a CPA firm performing audits cannot also do accounting and bookkeeping work for the same company.
Conclusion
Clients who outsource their accounting tasks have significant benefits. There are many benefits for clients who outsource their accounting tasks. These include cost efficiency, flexibility with contracts and scaling up the number of functions. While accounting and bookkeeping are essential parts of any business, they can also be complex. This requires expertise and time. Accounting experience is not necessary. Errors can cause a decline in business performance or even bankruptcies.
