5 Ways To Know When to Switch to Virtual Bookkeeping
If you are a small business owner, you know that time is the most valuable asset. How you manage your time is crucial to the success of your business. Do you spend that precious time ideating your products and services and coming up with new ways to market your business to gain more customers? Or is your time spent being the business bookkeeper, organizing receipts, inputting invoices, tracking expenses, managing payroll, etc.?
If you answered “no” to the first question and “yes” to the second question, it might be time to hire a virtual bookkeeper. What are a virtual bookkeeper and virtual bookkeeping, you ask? In the simplest terms, a virtual bookkeeper is a regular bookkeeper with additional benefits that you may not even know existed!
There are five ways to know when to switch to a virtual bookkeeper that we will discuss in this article. If you are interested in learning the invaluable benefits that a virtual bookkeeper can add to your business, keep reading!
1. You Want to Save Time
As discussed above, your time is the most valuable resource in your business. You are not allocating your time correctly when you spend hours trying to track invoices, manage payroll, organize your finances, balance your books, and more. That is a hat you do not need to wear. A bookkeeper can take all of that off of your plate and allow you more time to focus on growing your business.
A virtual bookkeeper enables you to forgo the time needed to: search for hiring a qualified in-house candidate, spending time on-boarding them, and then orienting them to your business. When hiring a qualified virtual bookkeeper, like the bookkeepers here at Redmond Accounting, you don’t have to worry if they are doing their job right. They’re professionals and can handle all your bookkeeping needs.
2. You Want to Go Digital
When hiring a virtual bookkeeper, be prepared to go digital. You and your bookkeeper will utilize online accounting software, and they will help you choose the best accounting software for your business. Going digital means going paperless. You are free to get rid of the clutter and toss out (after scanning it) the paperwork you had stacked up. Long gone are the days spent looking through file cabinets full of paperwork to find one bill. Now all you have to do to find an invoice or receipt is search your files online, which means you can have your documents in a matter of seconds. Redmond Accounting uses cloud-based accounting software, which means you won’t fill up your computer’s hard drive or memory with the data.
3. You Don’t Have Space
When starting up, many small businesses run their business out of their home or a small workspace. If you run your business from home, you don’t have an office or workspace for a traditional in-office bookkeeper. A virtual bookkeeper works out of an office space or house of their own and doesn’t need to come on-site. Virtual bookkeepers are also as available as a traditional in-office bookkeeper, so you don’t have to worry about losing the communication aspect.
4. Managing Your Accounts
Your virtual bookkeeper is now your partner, and they will help you by keeping your accounts balanced and up-to-date. Bookkeepers are experts at organizing and managing the finances of a business. It’s important to note that bookkeeping and accounting are different services. Our article titled “Virtual Bookkeeping vs. Traditional Bookkeeping” will help you understand the difference between a bookkeeper and an accountant. If you have an accountant, you can ask your accountant if they offer bookkeeping services. If you don’t have an accountant, our team at Redmond Accounting can consult with you to find the exact services and professionals you need to efficiently and effectively run your business.
Keeping Your Accounts Current
As tax season comes around, it is essential to have all of your accounts and books in order. Your bookkeeper will help ensure all of your accounts are up-to-date and ready to be reviewed. This is a massive benefit. You are able to analyze how your business is doing at any given moment because your bookkeeper has it managed and current. Current and accurate financial information can make all the difference when looking to expand or make changes to your business.
Error-Reduction and Protected Accounts
Your bookkeeper will also be able to review your account for errors or fraudulent activity. If you are taking on the task of bookkeeping yourself, you might not catch a mistake, enter the wrong information or not notice fraudulent activity happening in your account.
5. You Want to Save Money
All of the benefits mentioned above are also cost-saving benefits to your business. A virtual bookkeeper provides a service and is hired on an as-needed basis. You most likely won’t need a full-time bookkeeper if you have a small business. You will not need to put your bookkeeper on payroll, insurance, or other costs incurred by having employees. In the article titled, “Virtual Bookkeeping VS. Traditional Bookkeeping,” we break down the difference between hiring a traditional or virtual bookkeeper.
By going paperless, you won’t have to spend money on paper and ink. Gartner Inc., a research company, did a study in 2018 and estimated that up to 3% of a company’s revenue is spent on paper. A PWC survey also noted that an employee spends about 8 hours a week managing that paperwork, which also costs them time and, in the end, costing you money.
You won’t have to create a dedicated workspace for a virtual bookkeeper like you would for a traditional bookkeeper, which means you don’t need to spend money on renting or buying office space.
How to Hire a Virtual Bookkeeper
Our Bookkeepers at Redmond Accounting Inc. are experienced, knowledgeable, educated, and certified. If you are looking for a virtual bookkeeper and want your books in order, we are here to help you succeed. We also have accountants, payroll specialists, controllers, and CFOs who are ready to partner with you and grow your business. Set up a quick 20-minute consultation with one of our team members to determine what services you need for your business.
