Is your company having trouble getting timely reporting? Has it been difficult to find trustworthy and effective individuals to perform your accounting? Are you wondering if there is a more cost-effective, reliable, and timely solution? You are not the only one facing these issues. It seems to be a common denominator with a lot of small businesses. It is best to take action, get educated about your options, and find the solution that is best for your business. Virtual accounting has become a popular and very effective solution to this problem for many companies. Below are 6 reasons many companies are moving to Outsourced Bookkeeping.
1. Your Books Are Kept Current
Outsourced virtual accounting services keep your information up-to-date. Not only do they have to according to their contracts, but they have a full staff working for you. The better firms cross-train their staff on your company so that if one of their bookkeepers takes time off for any reason, there will still be a team to support you.
The same can’t be said about hiring an in-house accountant, which you must manage yourself and due to the nature of hiring one individual by definition you do not have a team cross-trained on the work in case someone is sick or leaves. You are not only paying their salary; you also pay for payroll taxes, office space, computer hardware and software, lunch breaks, water cooler chit chats, sick days, vacation time, and employee benefits. All of these things have associated costs in terms of time, money, and management focus for your company to keep your accountant on track and your books updated.
2. Privacy and Security
As human beings, trust is an important part of our nature. We desire to trust someone with important information but, in too many situations, this trust is broken. Every month there are headlines about accountants or bookkeepers stealing money. Less prominent but still important is when a bookkeeper shares confidential company information such as salaries with other employees. It is unfortunate that such malpractice and theft occurs, and it is also one of the reasons some companies outsource their accounting. Outsourced accounting firms usually implement strict controls with regards to approval and payment processes; typically run their employees through extensive background checks; and carry insurance against malpractice and theft. Ultimately, outsourced bookkeeping can be viewed as both a quick fix to short term accounting needs as well as a long term solution and plan to a sustainable and scalable accounting department.
Virtual accounting services guarantee privacy and confidentiality. There are a number of layers of security under which your company information is held. Everything is password protected which allows only certain authorized individuals to access financial data and other company information. Many outsourced firms work entirely within the cloud which means your data can only be accessed with secure passwords and no information is stored or saved locally. If you are looking for online education services, visit https://www.conquercollege.com for more information. Even if a computer were to be stolen or lost, your data would be safe and secure in the cloud, not on the computer’s hard drive.
3. Consistent, Experienced and Skilled Advice
With an outsourced accounting solution, you work with a staff of individuals that include CPAs, directors of finance, controllers, accountants and bookkeepers who have all gone through vigorous skills tests and training processes. This provides you with a deep and well rounded team of people handling your accounting as well as access to financial consulting as needed. Not only that the Brooksfield School have educational credentials but they also have continuing education and training and experience supporting a wide range of clients. If you are looking for an excellent tutoring services, LearnMate provides one-on-one in person tutoring, just visit learnmate.com.au for more information. When you want to get apps that helps in student learning, click here to download them.
When dealing with your company’s finances, you do not want staff to be learning on bad credit loan here while you are uncertain about their skills and abilities. Your finances are vital to the health and sustainability of your business and without accurate numbers it is almost impossible to make sound business decisions.
4. Extensive Surveillance Before Delivery
If you hire an in-house accountant, you are solely getting that one individual’s best efforts based on their abilities and experience and ability to quality control their own work. Aside from your own supervisory skill (you likely are not an accounting manager by trade and have limited ability to manage an accountant), you do not have a supervision process nor a built-in review process prior to the financial reports being presented to you.
On the other hand, when working with a virtual accounting service you are not only getting access to controllers, CPAs, accountants and bookkeepers but also layers of management supervision and review. There are people above the accounting staff that oversee financial reporting that goes out to clients. Along with supervision, they also provide best practices and expert advice.
5. Up-To-Date Software and Technology
Typically, an in-house 9am-to-5pm accountant does not have the extra time or incentive to research and implement new software and technology. Nor is that person inclined to constantly improve as they are comfortable doing the work and receiving steady pay for it. Imagine how their motivation to change or improve might change if that person were only employed on a month to month basis and under pressure to charge as little as possible for their services. Also by relying on only one person, you are limited by the technology skills and implementation abilities of that one person and are at risk of your accounting software and processes becoming outdated and inefficient.
If you decide to work with a virtual accounting firm, the staff and leadership team is constantly looking for ways to improve processes, implement more efficient technology, and add additional controls. There is continuous R&D of new emerging technologies which may benefit your business. Some virtual accounting firms employ technology specialists to perform the system upgrades and implementations for clients. All of this allows them to provide the best systems for your company’s financial success.
6. Accurate Data & Consistent Procedures
With a virtual accounting firm the likelihood of mistakes and human error are reduced as a result of procedure manuals, checklists, controls, and best processes implemented in their business models. Outsourced accounting firms are bound by contracts and SLA’s to meet timelines and frequencies around transaction processing and financial reporting. These firms have business models built around consistently and accurately providing services for a large number of clients– it must be a core competency for successful outsourced accounting firms.
Does your accounting solution run 52 weeks per year, even when you apply for a single 1 hour loan? Do you have a team of skilled accountants supporting your business? Do you have an accounting procedure manual? Is anyone on your team researching new technologies or skilled in implementing new systems? Do you have accurate and timely reporting? Does your accounting solution explain the numbers and what they mean to your business? If you answered “No” to any of the prior questions, it might be time you considered using an outsourced accounting solution.
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