How does hiring a bookkeeper save you money?

First, what is online bookkeeping?

This process utilizes cloud-based software, enabling bookkeepers to access and work on financial data from any location. By granting access to your accounts, the virtual bookkeeper can perform tasks such as bank reconciliation, financial reporting, invoicing, and bill payment. A virtual bookkeeper assists businesses in managing their finances. Here are some key tasks handled by an online bookkeeper:

• Recording transactions in accounting software

• Reconciling bank and credit card statements

• Creating and sending invoices to clients

• Preparing Profit & Loss statements and other financial reports

• Verify entries and cross-check accounts

• Administration of Accounts Payable and Receivable

• Payroll recording

• Provide assistance with timely tax filing.

Having gained an understanding of what a virtual bookkeeper is and their responsibilities, it is now important to comprehend the concept of virtual bookkeeping.

Virtual bookkeeping services offer a valuable solution for business owners who require assistance with financial management. These services provide an online platform that assigns a qualified virtual bookkeeper to manage all aspects of your financial records.

Here's a detailed look at how virtual bookkeepers can save you money:

Employing a virtual bookkeeper can result in significant cost savings by eliminating the necessity for a full-time in-house position, thereby reducing overhead expenses such as office space. Furthermore, it may lower overall bookkeeping expenditures. Payment is based solely on the services required, and virtual bookkeepers utilize technology to enhance efficiency, which further decreases costs.  

Reduced Salaries and Benefits:

Engaging a virtual bookkeeper removes the necessity of paying for a full-time employee's salary, benefits (such as health insurance and retirement plans), and associated taxes.  

Lower Overhead Costs:

Virtual bookkeepers perform their duties remotely, eliminating the need for expenditure on office space, utilities, and office supplies.  

Cost-Effective Solutions:

Virtual bookkeeping services typically offer a more cost-effective solution compared to employing a salaried bookkeeper, particularly for small enterprises or businesses with variable bookkeeping requirements.  

Scalability:

You can tailor the scale of your virtual bookkeeping services to match your requirements, enabling you to manage costs effectively as your business expands or contracts.  

Potential for Cost Savings:

Research conducted by Otterz Inc. indicates that virtual bookkeeping has the potential to reduce bookkeeping expenses by up to 50 percent when compared to employing a conventional bookkeeper.  

At the start of the process, a business owner and virtual bookkeeper typically have an initial consultation to determine the scope of work, expectations, and pricing. Subsequently, the bookkeeper will set up the relevant accounting software, collect the financial information, and oversee financial transactions. As the virtual bookkeeper manages the financial data, they generate financial reports and statements for the business owner to review at their convenience.

Hiring a full-time bookkeeper can be costly for small businesses due to the salary and additional expenses associated with employment, such as taxes, health benefits, and office overheads. Hiring a virtual accountant can reduce these costs significantly.

By hiring virtual assistants, it is possible to save approximately 30 to 50 percent of the costs associated with in-office employees. For example, an in-office, full-time bookkeeper would cost around $3,000 to $4,500 monthly. An online bookkeeper performs the same duties as a physical bookkeeper without incurring costs for office space, furnishings, or office supplies. Additionally, outsourced accounting services can assist with filing tax returns, financial reconciliations, and data entry.

Delegating bookkeeping tasks to a virtual bookkeeping expert allows business owners to concentrate on their company. A remote bookkeeper can manage essential bookkeeping tasks, enabling business owners to focus on their business, networking with clients, and working on growth strategies during the time saved from bookkeeping.

Bookkeeping can fall behind due to involvement in other aspects of the business, leading to delays and errors. A virtual assistant bookkeeper updates finances and prepares detailed accounting and finance reports to help better understand and manage business finances.

An in-office bookkeeper typically works regular hours and may not respond to calls or emails outside business hours. In contrast, a virtual bookkeeper is often more flexible with their schedule and available for emergencies or urgent matters. Their services can be scaled according to project needs and specific requirements.

How can I be assured I’m working with the right firm?

Reputable virtual bookkeepers are qualified candidates with expertise in handling complex online bookkeeping tasks. Many remote bookkeepers work for multiple clients and have accounting experience in different industries and segments. If you are concerned about a bookkeeper’s qualifications, here are some tips:

·        A QuickBooks Online professional should have QuickBooks Online Pro Advisor profile, which you can easily lookup here: https://quickbooks.intuit.com/find-an-accountant/

o   Request their certifications. Reputable bookkeepers will gladly share their certificates for completed courses and exams.

·        Ask for references. A bookkeeper with a good reputation should always have a list of references that can be verified with a quick email or phone call.

·        Referrals and word of mouth are often the best way to find reputable professionals.

o   A good bookkeeper will request a signed contract to set expectations and maintain accountability for both parties.

o   Ensure your bookkeeper is insured. It is important to verify that the person or firm you are working with has Professional Errors and Omissions insurance.

Are you ready to start saving money while getting your business finances in order and keeping them that way? Reach out today for your free consultation (908) 652-5444 or carrie@pennywisesolutionsllc.com