As an entrepreneur, you know that your organization can’t succeed without effective bookkeeping and accounting. However, you also know that these tasks take countless hours and professional expertise. Hiring a salaried accountant may be too expensive, while doing your own books wastes time and jeopardizes your bottom line. Luckily, recent technological advances are providing entrepreneurs like you with a new solution: online bookkeeping services. Keep reading to know more about this.
Outsourcing Bookkeeping for Small and Medium Businesses
Online bookkeeping is a type of outsourcing where businesses delegate their bookkeeping and accounting needs to an outside organization. These companies provide users with online bookkeepers, who use the latest technology to remotely maintain balance sheets, keep books, draft financial statements, and carry out all the functions that a traditional accountant would. Online bookkeeping services also streamline the bookkeeping process, providing your organization with unparalleled convenience, security, and cost-effectiveness. Small business owners have noticed these advantages, and are increasingly turning to specialized online accounting and bookkeeping services to fulfill their reporting needs.
In simple terms, bookkeeping is the procedure of documenting, classifying, and summarizing an organization’s financial transactions. Accounting, which builds on bookkeeping, involves bigger picture analysis and business strategy. Besides improving performance and profitability, these tasks are legally required before a company can make tax payments. While crunching numbers may not be the most thrilling part of owning a business, your organization needs an effective bookkeeping system backed by trained financial experts in order to succeed.
Fortunately, online bookkeeping services allow more entrepreneurs to receive professional financial expertise. An online bookkeeper remotely performs the same tasks as an in-house salaried accountant but often at a lower cost and with added flexibility. Online bookkeeping is significantly less expensive than hiring an in-person employee, while also ensuring a more efficient and flexible process. When you recruit an online bookkeeping service, an entire team of seasoned financial professionals collaborates to promptly and accurately manage your finances. That means no delays, interruptions, or errors. Because they can work remotely from anywhere in the world, online bookkeeping companies are able to bypass local market rates for financial experts; as a result, professional bookkeeping services are more accessible than ever, including to organizations with limited resources.
Each business is unique, and online bookkeeping providers deliver bookkeeping services appropriate for various types of organizations. They may suggest several options, including a full-service package or just get a single option like:
- Invoice control
- Balance sheets reconciliation
- Payroll management
By completing these bookkeeping tasks, your dedicated financial specialist can help you rationalize the organization’s financial structure, improve operations and forecasting, and boost profitability going forward.
How to Choose Best Online Bookkeeping Services
While every small business has unique circumstances and needs, a few helpful parameters can help you find an appropriate online bookkeeping company. When seeking out a firm, keep in mind the following metrics:
- Cost. You should establish a budget for online bookkeeping services. When considering a company, you should clarify rates upfront to avoid any unpleasant surprises.
- Customized solutions. Focus on which functions you’d like to turn over to your online bookkeeping company. Maybe your organization requires help with invoicing or tax planning. The longer the list of required tasks, the pricier the service will likely be.
- Integration with your accounting software. Verify that your would-be online bookkeeping service employs the same software as your organization. Otherwise, you might waste time installing third-party software.
- Accounting method. There are two techniques for accounting: cash basis and accrual basis. When delegating your finances, you will want to find a company that uses a technique appropriate for your business.
When considering different online bookkeeping companies, your main responsibility is to determine your budget. In order to meet your budget, you will need to prioritize the online bookkeeping services that are truly indispensable. While it is normally unwise to pinch pennies in the accounting department, the outsourcing of reporting tasks still represents a monthly expenditure that must be factored into your organization’s budget.
The Most Efficient Online Accounting and Bookkeeping Companies in 2023
The trend toward standardization and transparency propelled the integration of best practices in financial management, serving as a significant catalyst for the adoption of the third-party services. We’ve done research to compile a helpful list of organizations that have demonstrated excellence in their online bookkeeping and accounting services. Several aspects were analyzed, such as pricing, range of functions, security, and usability. Below is a brief rundown on Bench, Freeagent, Bookkeeper.com, Bookkeeper360, and what they provide to entrepreneurs like you. Their services vary, so it is important to select an organization that meets your demands as a small business owner.
Online Record-Keeping by Bench
Bench supplies online financial services backed by a staff of trained accountants. Largely working with small businesses, it provides users with an affordable and intuitive platform for paying employees, tax planning, and analyzing cash flows. You will also receive balance sheets and financial statements, gaining essential economic insights that you can use to optimize your company’s operations. In addition, Bench accountants will collaborate with your CPA or seek out knowledgeable candidates to oversee your finances. Bench even sweetens the deal with generous discounts, such as 30% off the first three months of service. Despite this service’s many features, Bench does not offer payroll or bill payment. They also use cash-basis accounting, unless the user upgrades to a Pro plan. Despite the few limitations, Online record-keeping by Bench can be an ideal option for many small businesses.
Online Bookkeeping Services by Bookkeeper.com
Bookkeeper.com offers a full suite of online bookkeeping services for small businesses, but at a higher price point. Using QuickBooks software, they pair organizations with experienced accountants. To start, Bookkeeper.com will link your bank accounts to QuickBooks service, giving you a centralized platform on which you can calibrate individual settings for each bill, pay them automatically, and oversee all other payments, including payroll. This service gives you control of every account, which gives you the power to assess your company’s performance at a glance. This service also gives users the ability to write checks remotely, and guarantees that they are delivered promptly.
Freeagent Record-Keeping
Earning its name, this bookkeeping service empowers small business owners to take control of their own finances. It offers tools for independent record-keeping, allowing you to supervise all of your organization’s accounts from a single platform. Freeagent also gives you the power to track expenses, send and pay bills, regulate cash flows, and oversee financial information across different projects. An affordable solution for small businesses, FreeAgent’s effective software empowers users to independently handle their organization’s finances.
Complete Record-Keeping by Bookkeeper360
Bookkeeper360 is a full-service, cloud-based online bookkeeping company designed to meet the financial reporting demands of small and medium businesses. It seamlessly integrates your accounts with QuickBooks or Xero software, which allows you to strategically control your finances. This service also provides you with a personal account manager who knows how to draft financial statements, manage invoices, and distribute wage funds. They also offer optional consultations on proper record-keeping, provide reporting for each department of your company, and deliver helpful information for hiring a CPA. With no contract required, you can terminate these services at any time.
How Online Bookkeeping Services Benefit Small Businesses
Online bookkeeping services deliver an affordable and convenient solution for small business owners looking to take control of their finances. Your organization can enjoy the highest quality financial expertise – whether in bookkeeping, reporting, forecasting, or the creation of financial statements – with a price tag much lower than a worker’s salary. These online services perform all of the financial reporting functions that your small business requires to grow, while guaranteeing unmatched convenience and effectiveness.
When it comes to your organization’s growth, a successful bookkeeping and accounting system is simply indispensable; that’s why it’s so important to delegate these functions to a professional accountant who can manage finances with accuracy and promptness. In the age of online bookkeeping, small business owners can actually access the services of a professional bookkeeper or accountant without breaking the bank.
Online bookkeeping services bolster your bottom line by:
- Cutting expenses and better financial resource allocating
- Strategically growing your enterprise
- Enhancing your organization’s image.
BooksTime delivers all of these bookkeeping services, and more. Our team of experienced online bookkeepers and accountants is trained to help organizations like yours reach their goals, whether that be fiscal stability or growth. Our team works around the clock to perform your bookkeeping tasks without mistakes or interruptions. We also offer consultations with our seasoned CFOs, who can assist you in improving your approach to management and strategy.
How to Save Money with Online Bookkeeping Services
Small business owners often adapt to their limited resources by doing as many tasks as possible on their own, including bookkeeping and accounting. This approach can work, at least temporarily, for the smallest of operations. As your business grows, however, you will discover that this method is actually very limited and ineffective. More business means more economic activity to document and classify, which exponentially increases the time required for bookkeeping duties like generating financial statements and maintaining balance sheets. Unless you have financial knowledge and credentials, doing your own books can threaten your bottom line and your brainchild.
While taking on a full-time accountant may seem to solve these problems, many small business owners cannot afford this approach. When you hire a full-time employee, you not only have to pay the worker’s salary, but also associated costs: these include payroll taxes, allocating office space, and other organizational costs. Moreover, if you don’t have a professional background in finance, you won’t be able to actually monitor your in-house accountants or assess the quality of their work.
Online bookkeeping is an ideal alternative to hiring a full-time accountant or keeping your own books. These services not only cost a fraction of a full-time salary, but they also provide essential financial functions that increase your organization’s profitability. Between record-keeping, drafting financial statements, overseeing accounts, and generating valuable analysis, your virtual bookkeeper performs tasks that shore up your organization. After all, a strong core of financial information is a roadmap to success. Financial insights allow you to create a successful budget, optimize operations, and craft a strategy to bring in more profit. With all of these benefits at a low monthly rate, you are all but guaranteed to increase profits and improve your performance.
Bottom Line
Online bookkeeping services offer unparalleled affordability, efficiency, and convenience. Small business owners can enjoy the expertise of seasoned accountants and bookkeepers at an inclusive cost. There is no longer a need to choose between doing your own books or taking on an expensive salaried employee.
At BooksTime, we are always thrilled to help small business owners make the most of their enterprise. Our staff of seasoned accountants has bookkeeping experience across virtually every sector, and are prepared to perform your business’s financial record-keeping and reporting functions with precision, speed, and professionalism. With our online bookkeeping services, you will be able to better comprehend your business’s structure and performance, bring in more profit, and make strategic choices going forward. Check out BooksTime to learn about how our solutions bring you closer to your goals!
