Small business owners often have to wear multiple hats. They come up with the ideas, market their brand, build a strong team and maintain relationships with customers.
On top of all that, they also need to keep track of their profits, as keeping ‘the books’ organized and updated is crucial for small businesses. This is because they show your financial growth, and tracking those numbers will indicate how profitable your business is.
But keeping up with all these tasks, including bookkeeping, analyzing your financial reports, tax filing, along with handling production, marketing, and sales, can be overwhelming.
According to one study, 40% of small business owners say that bookkeeping and tax filing are the worst parts of owning a business. They are also time-consuming tasks, where one small mistake can lead to missed income or unwanted losses. That’s why almost 71% of small businesses outsource their accounting. So, if you are a small business owner facing the same challenges, consider the assistance of online accounting services.
Keep reading to learn more about how hiring online accountants and remote bookkeepers can eliminate your accounting obstacles.
Table of Contents
How Virtual Accounting Solves Top Bookkeeping Problems
Keeping track of your business’s financials is probably not your passion, but bookkeeping and accounting are key operations of any business. That’s why as an entrepreneur organizing your books is essential to staying on top of your company’s finances. In this post, we will discuss three key problems that you can eliminate by hiring online accounting services.
You Get a Break from the Reams of Receipts and Bank Statements
How many times have you felt overwhelmed at the end of the tax year, stuck with files filled with numerous receipts, invoices and bank statements? Imagine you get audited and need to find one out of a thousand supplier invoices. By hiring virtual accounting services, you are relieved of the pain of managing tons of paper.
In online accounting, all tasks are done completely without paper. Your documents will be shared on the cloud, which you can access securely. To keep your data safe, your online accountant takes additional cyber security measures. So, even if you increase your business’s online exposure, your cyber security will be preserved.
Furthermore, with virtual bookkeeping and accounting, you don’t have to worry about keeping track of (or misplacing) your paperwork. By using cloud accounting software, you are able to log in and see real-time financial data about your business with complete transparency. You will also have up-to-date information about how your business is performing. And better information means better decisions.
You Reduce Manual Labour and Human Error with Automated Accounting Software
It can be manually intensive for a small business to manage its cash flow. According to one U.S. bank study, 82% of businesses fail because of cash flow problems. Indeed, small business owners find it challenging to earmark funds to cover their recurring costs and keep their business alive.
In that kind of situation, an online accounting service can help small businesses capitalize on automating both their accounting and operational processes. This not only eliminates the chances of human error but also saves clients time, enabling them to focus on their business. The following are some of the areas where you can save your time through automation:
- Data entry
- Payroll processing
- Sales taxes
- Financial reporting
So, you no longer have to worry about wasting your time entering data into spreadsheets. Cloud-based accounting software can streamline your business processes and help you identify growth drivers. It will also reduce the time it takes to record and reconcile your transactions.
Get Rid of Redundant Work with Qualified Bookkeepers
When you partner with a virtual bookkeeping firm, you don’t have to worry about getting your books completed around time-off requests, sick leave or staffing issues. Instead, you will get a dedicated team of professional bookkeepers. So, even if one person is not present, there is no delay in services. Instead, you get highly-skilled bookkeepers who are available 24/7.
Even if you are not in the office, you don’t have to worry about whether your business’s accounting is being done properly. Even when you are on vacation, your virtual bookkeepers will be remotely available to keep you updated on your accounting. With a virtual team, you can easily grow your business or cut back on services to get you through the hard times. No need to worry about layoffs or finding another person to add to your accounting staff. By utilizing the most appropriate technology, they will make sure that your books are kept accurately.
If you are looking for a cost-effective accounting solution or trying to free up time to focus on other projects, consider hiring online accounting services. They are not only affordable, but they will tailor your services to your business needs. Without the headache of managing extra employees, you will get an error-free, expert accounting solution.