13 Apr The Advantages of a Virtual Bookkeeping Service
Bookkeeping can be done in a number of ways, and some are better than others. Your options include do-it-yourself, using virtual accountants, and in-house hiring. The advantages of a virtual bookkeeping service are plentiful, but it’s up to you to decide what’s the best route to go for your business.
Save money to spend someplace else
Hiring a virtual bookkeeper can save you money in two ways. First, a professional bookkeeping service will produce higher quality documents than a business owner who’s short on time. They will be more thoroughly checked and can avoid costly errors. It’s less likely that you’ll be able to produce up-to-date, error-free records on your own without dedicating many hours.
The second way virtual bookkeeping can save you money is if you compare it to the cost of hiring an in-house bookkeeper. With an in-house hire, the work will be thorough, but you’ll have to pay for each hour they work, some of which are less productive than others. Add the cost of employee benefits and you can be looking at a monthly bill starting at five times where we do.
Financial forecasts are up to date
The second advantage of an online bookkeeper is that they do your books regularly. This means you can always see at a glance where your business is headed. You can check on the health of your accounts, estimate months in the future, and be confident that the information is accurate. Monthly profit and loss statements are no problem, and it doesn’t take any extra work on your part to make that happen. What could you do with the time saved at the end of each month?
Invoices and payments, done for you
From cutting checks to contractors, to payroll and beyond, our team at MiHi Pro can handle anything that you throw at us. We are able to create purchase orders for you and unify them across all channels. One benefit of this is that it saves time when a dispute comes up.
You trust your business and the members in it, but you don’t have time to fully vet each vendor you work with. Up to 30% of all invoices are disputed, and without an organized procedure in place, it can be a headache to resolve them. We have your back when it comes to resolving disputes quickly and easily.
Virtual bookkeeping saves that most fleeting resource: time
Time is the one thing you can’t buy more of, and when you are growing a business, it is even more valuable. A virtual bookkeeper can save hours from your week and days from your year, time you can use however you wish. If you had a few extra hours a week, think of all that you could accomplish. You could push hard and gain an edge on your competitors. Or you could use the data from your updated balance sheet to plan the next month’s growth in detail.
Be prepared for taxes
Taxes are the one thing that you do not want to go into unprepared. If there’s an error in your reporting, it can be costly in both time and money to resolve. The best way to ensure that your documentation is correct is to work with an accountant year-round.
At MiHi Pro, we also have the ability to advise you in situations like restructuring, inventory changes, investments and mergers. Does your business sell goods across state lines? Are you a non-profit? Many things can impact your tax situation, and you’ll never be left wondering “what if?” with us.
Do more than survive an audit
An audit can be a stressful time, especially if you’ve been keeping your records all by yourself. Even though most audits are random, there are certain things that can increase the likelihood of you receiving one. One of these is using round numbers for too much of your reporting. Transactions rounded to a whole dollar amount are OK, but if you are doing your own books be careful not to round everything to hundred dollar amounts. That could land your tax return in the “audit next” pile.
Even when all your reporting is done correctly, you may be the recipient of an audit. When we are on your team, you’ll be ready for the auditor. Records, receipts, invoices, expenses will be organized and easily accessible so that your audit goes as smoothly as possible.
You don’t have to worry about growing pains
Maybe your business has started to grow a little faster than you were anticipating. Maybe you didn’t have to hire any full-time employees before, but now you do. Or maybe that new warehouse is becoming more affordable than you were thinking it would be. Transitions in your business structure affect your accounting, and things can become complicated.
Virtual bookkeeping has the ability to scale with you and ease bumps in the road that can come from rapid growth. You don’t have to hire another accountant as you increase in size; we are fluid and able to move along with you. Just let us know what you’ve got coming up next and we’ll make it happen.