For startups and small businesses, bookkeeping can be a real challenge. As an owner or manager, you encounter these three options for accounting: do it yourself, hire an employee to do it, or let a third party take care of it.
All of these options have drawbacks. With your spread-thin time, doing it yourself eats you away. Hiring a full-time bookkeeper is expensive, and maybe more than a small business needs.
And outsourcing requires giving third party access to your accounts—a move that requires a certain amount of trust.
However, technology solutions and digital services have been making outsourcing a more and more appealing solution for all types of businesses.
Most of the small and medium scale businesses are looking for the best way to save their financial resources as they are already very short on them.
They try all the different methods to save some extra bucks and one of the most frequently used methods is hiring online bookkeeping services.
It has been observed by businesses that by using remote bookkeeping services, they can save more money as compared to hiring a house accounting team.
Does Outsourced Bookkeeping Services Save your Money?
This question has been disturbing small business bookkeeping management very much. That’s because they are new and want quality services at highly affordable rates.
So, if you are a small business owner and wondering whether to hire a house accountant or go for online bookkeeping services. Well, then let’s clear your confusion with an example.
Most businesses hire an unqualified person to handle their accounts or they delegate bookkeeping work to their other employees.
This is a big mistake as your employees might be intelligent, but they are not trained to handle invoices, taxation reports, etc., So, this will affect the quality of your accounting work and set back your success.
On the other hand, if you appoint a full-time accountant, then it will averagely be going to cost around INR 3,00,000 ($45,000 in America) a year.
Plus, this is only the cost of hiring an accountant if you want to hire a taxation expert, then this will further cost INR 5,00,000 ($50,000 in America) a year.
So, a house team of accountants and taxation experts will add around INR 8,00,000 ($100,000 in America) extra burden on your company which is very high for small businesses.
If you decide to go with the online bookkeeping services company, then you will be able to cut down the cost quite a bit. Generally, It reduces almost 40-60% of the bookkeeping budget of the organization.
If you compare the quality and money saved by using online accounting services with the in-house team, then you will see a drastic difference.
But can remote bookkeeping services save your small business from extra cost and money? Let us go through some factors.
Save Overall Cost
If you want to simplify your bookkeeping and accounting, you should consider online services. How much are you paying your in-house bookkeeper? A remote bookkeeper will cost less to hire.
How? The online services will reduce your process to run background checks, provide ongoing training, etc. They will do that for you. Generally, you will save half of the money needed for the in-house accounting department and infrastructure. The savings will include the hours you 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. You will be surprised to know that most companies offering online accounting services have talented and experienced bookkeepers.
Human errors are bound to happen. 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 bookkeeping service comes into play. They have experienced .trained bookkeepers who can work, effortlessly, with your accounting reports.
Most of the services are flexible. You can contact customer supports any time you need support and your financial reports are available for viewing and editing 24/7 through the cloud. They always fit with your schedule.
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 for you.
Focus on Improving your Growing Business
With a remote Bookkeeper, you can decide how much time a remote bookkeeper will spend working with your financial reports. This will increase the productivity of your business.
Every online accounting service has fixed fees, dependent upon the transaction volume and the package you choose. You will have the budget ready even before signing up.
Because you know that your bookkeeping is taken care of by a trusted service, like Profitbooks, you will focus your time on other important things to grow your business.
Outsourced Bookkeeping 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.
Through updated and accurate financial statements you can easily make key business decisions that can support your company’s growth and save your time. Freeing up your time will help you focus more attention on product development, marketing, and selling.
Obtain Genuine Opinion
How many times have you tried to ask your bookkeepers about the financial status of your business?
Giving the job to a third party, you get a genuine opinion of your business. Since the third party has no intention to engage in your company’s inner workings, it can give you better advice on how to improve your business from a third-person view.
This will help you make positive decisions for the company.
Are they Secure?
Many of the managers/owners raise this issue – how secure is a cloud accounting service?
Online bookkeeping services use the highest level of security in protecting clients’ financial reports. Most of the time, it is protected using 128-bit encryption, which is the highest level of Internet protection for all web browsers.
Yes, it is more secure than your physical office. Your in-house bookkeepers may lose their computer passwords. They may even keep their records in an unlocked file or vulnerable position, thereby, increasing the risk of unauthorized access to those records.
These companies treat the client’s data with the highest priority and utmost protection.
Investing your Money in the right Place
As a business owner, you must 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 time-consuming to manage and prepare your accounts. But it is an essential aspect of your business’s financial health management.
You must not handle the bookkeeping tasks on your own, as it may only hamper the overall growth of your company. With remote bookkeeping services, your company will become more financially organized.
You 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.
How Profitbooks can help you?
When you use our online bookkeeping service at ProfitBooks, you will spend less time analyzing your financial reports and more time making decisions that affect the growth of your company. With real-time financial reporting, you can create forecasts and make financial plans accordingly.
Instead of focusing on keeping track of your books, You will spend more time determining ways to increase your sales and expand the business. The best part is, we provide an easy-to-use accounting software totally free with our remote bookkeeping services.