Bookkeeping can be a tedious and time-consuming process, but it’s essential to running any business. Without good records, you might not pay your taxes on time or keep track of the money coming in or going out of your company. Bookkeeping can also be quite expensive, especially if you hire someone to do it for you, which can leave your small business even tighter financial situation than it already was when you started.
It’s common knowledge that running your own business is time-consuming. Some tasks can be done in-house, such as tracking receipts and financial data. Still, others, like payroll and taxes, are laborious enough to hire help. Luckily, professional bookkeeping services can offer cloud-based software to take care of it all—from reconciling accounts to assisting with taxes and filings.
Most companies rely on invoicing to ensure their clients are paying up. But when you’re running your own business, it’s too easy to let paperwork slide. With most cloud-based accounting services, an automated invoice function will send reminders and alert your client if they haven’t paid in time. This makes it easier for you to make sure all payments are collected and helps you get paid faster.
If there’s one thing many small businesses owners dread, it’s paperwork. The year-end is when tax returns, W2 forms, and other end-of-year tax documents need to be filed—and let’s not forget that 941. If your business doesn’t have dedicated accounting staff or if your accounting system can’t automate these year-end activities, it may be worth considering outsourcing them to a virtual bookkeeper that offers cloud-based services.
The benefit of an online accounting firm is that it offers more than just simple bookkeeping services. For example, many of these firms provide time tracking features so your business can easily keep track of how many hours each employee works.
The IRS allows you to file electronically. Paperless tax filing is ideal for self-employed individuals and small businesses with simple tax returns. You can also schedule an appointment at your local IRS office if you’re feeling nervous about filing independently. Be sure to use encrypted or password-protected software and email accounts when filing taxes electronically or to store sensitive information, such as Social Security numbers, bank account information, W-2s, and 1099s.
A virtual bookkeeper is an invaluable resource for those who need in-depth financial reports for their banks, lenders, and investors. They will be able to put together cash flow statements, profit and loss statements, and more that include all of your business accounts. This allows you to look at your finances from an entirely different perspective and can provide valuable insight into where changes may need to be made.
Virtual bookkeepers can work more quickly and efficiently than their traditional counterparts, allowing clients to see financial information in less time. For instance, if you make $200 in royalties on an e-book selling on Amazon for two months and want to know how much of that money has been deducted for taxes, it might take weeks or even months for your traditional accountant to gather all that information.
A virtual accounting firm will take care of all your accounting, eliminating your need to hire full-time employees. This allows you to save money in several ways: first, by cutting down on payroll expenses (by 50%); second, by reducing or eliminating other costs that come with managing full-time staff (such as expensive health insurance and retirement packages). Most importantly, however, it gives you more time to focus on growing your business.
Online accounting services can keep track of your business finances from anywhere. This is a significant benefit for people who frequently travel for business or live outside their home country. For example, you own a restaurant in Tokyo and need to find an accountant there that offers online accounting services. With most online accounting software like Xero or Quickbooks Online, it would be easy to find and hire an experienced bookkeeper who speaks English and Japanese.