Why Virtual Bookkeeping Will Save your Small Business

Transcription

1 Why Virtual Bookkeeping Will Save your Small Business Virtual bookkeeping services are scary. They will not work. It s a common misconception of those who have not tried yet the various online accounting services. But as soon as they ve signed up for a virtual small business accounting service, they soon realise the benefits of it. How many times a day have you seen your staff bookkeeper spending his/her time at the water cooler or just chatting with co-workers? When you opt for online accounting services, you can save money and time. And as a business owner, you know that time means money. Many are still undecided about using it because it will mean outsourcing your accounting/financial statements. But did you know that the most successful, profitable small businesses of today are using online outsourcing? Yes, they have embraced it so that they can spend their time differentiating their companies in the marketplace. They are using online accounting as part of their long-standing sustainable business plan. The owners of these businesses have more time improving the quality of their product/service and increasing their profits. But how can virtual bookkeeping services save your small business? Save overall cost If you want to simplify your accounting, you should consider online accounting services. How much are you paying your in-house bookkeeper? A virtual bookkeeper will cost less to hire. How? There is no need for you to run background checks, provide ongoing training, etc. The online small business accounting services will do that for you. Generally, you will save in the region of percent of the entire cost of hiring an inhouse bookkeeper and using traditional accounting infrastructure. The savings will include the hours of time you and your partners spend on those activities. Because online bookkeepers work remotely, you will not have to process their payroll taxes, pay holiday time or provide other benefits.

2 You will be surprised to know that most companies offering online accounting services have talented and experienced bookkeepers. With that in mind, you are not only getting great value for your money but you will actually obtain a very experienced, talented, efficient team of bookkeepers that will help you with your small business. That is truly accounting simplified. Flexible In-house bookkeepers are talented. True. But they are not perfect individuals. They make mistakes in your financial reports. And when they do, you will not see the inaccuracies right away. As soon as you notice the miscalculation, you would like them to amend the errors. But, what if they are on holiday? Sick leave? Here is where an online small business accounting service comes into play. The virtual bookkeeping service provider have experienced, trained bookkeepers who can work, effortlessly, with your accounting reports. Our accounting services at Sanay are flexible. You can contact our customer support any time you need support and your financial reports are available for viewing and editing 24/7 through the cloud. Our virtual bookkeeping services fit easily work around your schedule. You will have expertise on your side as the virtual bookkeepers have excellent knowledge in this industry. The nice thing is that you do not need to pay for them around the clock. When you start putting your books into the online accounting services with highly trained and skilled bookkeepers, your job as an owner will become a lot easier and more effective. With that said, sick and holiday days will never be a problem to your small business. Focus on improving your growing business Hiring a virtual bookkeeper will boost your company s productive time as you do not have to work on bookkeeping tasks all day. You can decide how much time a virtual bookkeeper will spend working with your financial reports. This will lead to overall savings as online accounting services have fixed fees, dependent upon the transaction volume and the package you choose. This way, you will know the overall cost of the transaction before you even sign up, making it easier for you to stay on track with your budget. As you let someone else handle the bookkeeping, you can more easily concentrate on running your business. Because you know that your bookkeeping is taken care of by a

3 trusted service, like Sanay, you will focus your time on other important things to grow your business. You will have the peace of mind that you need so you can gather resources in building your company, instead of looking into your accounting all day. Outsourced accounting services will provide you with updated financial reports anytime you need to monitor your company s financial health. Because they are up-to-date, you can stop spending money you don t have or know when you can spend to take your company to the next level. We understand the value of financial reports and statements in running a business. With the up-to-date financial reports that we send to you, you can effectively use them to know whether or not your business is running smoothly. Through updated and accurate financial statements you can easily make key business decisions that can support your company s growth. Freeing up your time as the manager or owner of your business will give you the opportunity to handle other issues, other than problems related to bookkeeping. You can focus your attention on product development, marketing and selling. Hire trained individuals Again, this will mean savings. With online accounting services, you won t waste your time in hiring or interviewing individuals to perform the tasks. As you hire traditional bookkeepers, you will have to spend time guiding them in the things that they must do. Most of the time, applicants don t have all the qualifications or training that you want and need for your company. When you consider virtual bookkeeping services, you are hiring someone with skills and years of experience. You will be working with people who are not limited by geography or skills. You can give them tasks that a regular bookkeeper may not be able to perform or accomplish. When you do opt for trained traditional bookkeepers, their rates are expensive. But with virtual bookkeeping services, you can have well-trained, skilled bookkeepers without additional cost. The rates are approximately 30 to 50 percent less than the rates you will have to pay for traditional bookkeepers. This will lead to great savings for the entire cost of operating your small, medium or large business.

4 Obtain genuine opinion How many times have you tried to ask your bookkeepers about the financial status of your business? With a third-party involved, you get a genuine opinion of your business. Since the thirdparty does not engage in your company s inner workings, it can give you better advice on how to improve your business. The recommendations it can offer will not be self-serving but for the benefit of your company as they are not influenced by a desire to improve their position within your organisation. Because of that, you can now start to use your bookkeeping system to make key business decisions that can surely make a positive impact in your business. Get hold of timely, updated financial reporting As already mentioned, virtual bookkeeping services can provide updated financial reporting in real time. Generally, bookkeeping or accounting is the first thing that usually takes a back seat. This is especially true when things start to pile up. The next thing you know, it s tax season and you haven t touched your books since the previous tax season. Through online bookkeeping, accounting is simpler as you get financial reports virtually anytime. So, what does this mean to your company? Apart from the fact that an updated financial report can help in making key decisions, you can minimise your tax liability. We all know that inaccurate books can result in various unpleasant results. For instance, if your profit and loss report is erroneous, your company could end up paying more taxes. This would mean wasting your hard-earned money. Then, on the other hand, if the report is understated, you would be underpaying in taxes and possibly inviting an investigation by the government. If your company has accurate accounts that you can review before paying taxes then this will allow you to make important tax decisions before the tax season ends. Better cash flow management With an accurate bookkeeping system, you can easily look into your financials and evaluate whether or not you are making enough profits from your business. When you maintain a proper bookkeeping system, you can avoid a negative account balance and avoid fees adding up.

5 If this situation continues, bank fees and other charges can accrue, which may end up hurting your business financially. Having a properly managed cash flow will also enable you to reduce your outstanding accounts receivable. With ineffective accounts receivable procedures, come shortages in cash flow. Even though you see excellent revenue figures, your cash could be all tied up in your accounts receivable, your bank balance may still suffer. You must convert receivables into cash. You must also keep an eye on your accounts payable so that your company s cash will not be paid to your suppliers before the required payment dates and so that you are taking advantage of any discounts available. By closely monitoring both your payables and receivables, you can increase your cash flow making your operating activities easier. Are they secure? This is one of the issues raised by many managers/owners how secure is a cloud accounting service? Sanay partners with Xero to make sure that we can fulfil all of your accounting/bookkeeping needs. We are concerned about Internet security, too. That is why we only use the highest level of security in protecting our clients financial reports. The cloud accounting software that we use implements the same security methods being utilised by popular, major UK banks. It is protected using 128-bit encryption, which is the highest level of Internet protection for all web browsers. Yes, we are more secure than your physical office. Your in-house bookkeepers may lose their computer passwords. They may keep their records in an unlocked file, thereby, increasing the risk of unauthorised access to those records. But through our secure environment, your financial records will be processed utilising the highest level of protection to make sure that they will not end up lying on other people s desks. Investing your money in the right place As a business owner, it is essential that you put your money in the right place. This allows you to save more while you get the maximum value of your business. One of the most tedious tasks in managing your business is bookkeeping. It can be timeconsuming to manage and prepare your accounts. But it is an essential aspect in managing your business financial health.

6 You must not handle the bookkeeping tasks on your own, as it may only hamper the overall growth of your company. With virtual bookkeeping services, your company will become more financially organised. Your small business will enjoy the monetary benefits of online bookkeeping services because you do not need to pay for the costly monthly salary of a traditional bookkeeper. The cost of appointing an online accounting service is cheaper than having an in-house bookkeeper. The financial data of your company is essential in making financial forecasts and managing cash flow. As the owner of your small business, it will not be your job to look into and analyze balance sheets, profit and loss reports, etc. All you have to do is to know what they mean and how they can affect your business. From those pieces of information, you can, more easily, make financial decisions that can help you run your business smoothly. When you use our accounting services at Sanay, you will spend less time analyzing your financial reports and more time making decisions that affect the growth of your company. With timely financial reporting, you can create forecasts and make financial plans. You will spend more time determining ways to increase your sales, instead of focusing on keeping track of your books. Best, Jonathan Carling Managing Director at Sanay Limited Jonathan.carling@sanaybpo.com Do you want to learn more about outsourcing your finance function to facilitate growth in your business? Schedule a free consultation today!