Back in the day, bookkeeping was a manual process that required lots of paper, lots of ink, and lots of human resources too for larger organizations. Fortunately, as a part of the many good things that the changing times have brought us, online bookkeeping is now making the previously cumbersome process very convenient.
Online bookkeeping services are companies that specialize in helping businesses carry out their bookkeeping activities accurately, speedily and efficiently. The top certified companies are made up of a team of professional accountants with years of experience in the field. These services are the focus of this feature, and we’ll explain all you need to know to choose the right one. Plus, there are bookkeeping online service company reviews from real customers to help strengthen your decision.
Virtual Bookkeeping for Small Businesses
There are numerous accounting and bookkeeping software programs that you can get over the internet. However, on these platforms, you’ll still need to devote some time and energy. And if you’re handling the bulk of the business activities yourself, it would take away from your productivity in other areas.
Online bookkeeping services for small businesses, or virtual bookkeeping as they are often called, basically take the place of an in-house accountant. These professionals work remotely to help track your finances, keep your books balanced and perform other critical accounting functions.
How Does It Work?
The basic services you get from virtual bookkeeping are:
- Account reconciliation
- Financial reporting & Creation of Income Statements
- Payroll processing
- Accounts payable and accounts receivable
- Monthly and quarterly reporting
- Billing and invoicing
- Tax planning and preparation
To kick things off, you’ll need to upload your documents through a secure network like Google Drive.
If you’ve been lagging in your account records keeping, these online companies will first organize them for you before proceeding to day-to-day work. You can communicate with them virtually too, and you’ll get updated with regular reports on your financial situation.
There is usually no need for a contract since most services operate on a month-to-month basis. But you can always discuss this with the virtual bookkeeping company if you’d like to draw up one. They are very flexible, and you can also request them to adjust their services to meet your specific needs.
Benefits of Using Online Bookkeeping Services
Here are the top things you can benefit from online booking services:
Small businesses or strictly virtual businesses often lack the space to house accountants for their bookkeeping needs. Whether you’re located in London, Bristol, Manchester or Glasgow, using online services is more convenient. It also allows you to take advantage of the expertise that isn’t available on-premises.
This is another significant aspect of virtual bookkeeping services. Since small businesses are usually restricted with capital, there may not be adequate funds to employee accountants continuously. Virtual bookkeeping proffers a more affordable solution. These services do not have a single employer, and they cater to multiple businesses at a time. Rather than payment by the hour, they offer weekly or monthly price packages with subsidized fees.
Expert Software Support
Although business owners can use software programs on their own, it may be challenging to get the hang of the processes. Rather than purchase software and go through the hassle of learning how to use it, hiring an online bookkeeping service will let you reap from these apps without actually doing any of the hard work. If you’re already using a software solution, you can find accountants that provide support for that specific program. Otherwise, you could use the proprietary software and apps of the online company you choose. Read business to business service reviews to find out the companies with the best in-house software.
Free Tax Services
Filing tax returns are a standard aspect of businesses, and they can be quite a hassle. Fortunately, when you hire an online bookkeeping service, you can expect free tax services as a part of the package. They ease off the stress of filing annual or quarterly taxes, and since they ensure your financial documents are organized, you won’t be caught in a bind in the event of an impromptu audit.
Better Cash Flow
As a business owner, you may be unable to keep track of your invoices efficiently. You may forget to send invoices right away, or you may mistakenly exclude someone who still owes you money when sending payment reminders. With online companies offering bookkeeping services, you can eliminate the chances of these happening. A primary function of virtual bookkeeping is managing invoicing and customer interactions for timely cash cycles and exceptional customer experience.
Sending timely invoices ensures you get paid on time, and when a business sees its profits as when due, it’s sure to experience steady growth.