As a business owner, you know that you need to do your math properly to maintain a healthy flow of cash and sustain your business. Having professional bookkeeping skills is one of the surest ways to properly account for your cash and make better financial decisions.
Unfortunately, many businesses, especially small and medium-sized businesses (SMBs), are in big trouble when it comes to managing money. They suffer from a lack of accounting skills and expertise and also face the highest risk of fraud by financial employees.
What options are there for businesses to properly manage money? One option is to hire virtual bookkeeping services.
But how do these services work and how do you know that your business is ready to outsource bookkeeping?
How Virtual Bookkeeping Works
In virtual bookkeeping, you hire a remote accountant to provide online accounting services. There are lots of companies offering online bookkeeping services in the UK. A virtual accountant uses bookkeeping software to do all the accounting work, from basic bookkeeping like invoicing to preparing financial statements.
All you need to do is to give your virtual accountant access to your financial documents, software, and server. Both of you should have compatible software so that you can exchange documents seamlessly.
How do you know when to start looking for online bookkeeping services? Below are 6 signals that it is time to outsource your bookkeeping.
You have suffered under rogue bookkeepers
Accounting fraud is a common scenario in small business and it comes in the form of payroll fraud, cash theft, embezzlement, false invoicing, and more.
If you have had first-hand experience with these bookkeeping horrors, it is time to jump ship.
Hiring an online bookkeeping company is one of the surest ways to protect your money as it usually a very transparent process.
You don’t focus on core business anymore
Accounting is tough. Trying to make sense of numbers coming from all over your business needs proper time and focus. If you find yourself overly stressed out figuring out where your money is going, it is time to outsource.
Outsourcing allows you to focus on core business and make more money and let someone else handle your finances.
You are at risk should Her Majesty’s Revenue and Customs office (HMRC) knock on your door
I don’t know of a business that looks forward to auditing by the government revenue body.
Even established businesses with excellent accounting systems in place still manage to get on the wrong side of the HMRC, How much more your business, whose documents are lying someone ins a drawer, disorganized and gathering dust?
The last thing you want is to spend more money on penalties because you cannot find crucial documents that the government body is demanding.
If you are in such a situation, a virtual accountant can assist you to get your house in order before it is too late.
Your business is scaling or moving to the next level
What was it like those days when you used to stay up all night on your bedroom floor trying to make sense of boxes of financial papers? Not very nostalgic, right?
Now your business is growing and more than ever, time is a luxury.
If you are handling increased inventory, hiring more employees, getting more contracts, and the like, you are now handling more money and professional support is in order.
You have hired remote workers
If you are already managing remote workers, it means that you are already using online systems in your business. Working with an online bookkeeper should also be seamless and the ideal way to bring together your company finances.
You want to protect yourself from cyber insecurity
43% of data breaches target small and medium-sized businesses.
They say that data security is only as good as the software you are using. Outdated software is a bomb waiting to explode. At the same time, installing security systems in your place or hiring someone to take care of your data security can be costly.
Why not hire professionals who already have excellent security systems in place and know the ins and outs of safe-keeping of data?
If you own a small or medium-sized business, you know that every cent counts. You need accurate and timely bookkeeping to help you keep track of your money and make timely decisions. That is where online bookkeeping comes in.
Online bookkeeping is also a way to rescue your business from poor accounting practices, accounting fraud from rogue employees, and government audit penalties. Even better, you get to save the money you would have spent on paying employee salaries, bonuses, overtime, and benefits; by spending less on online accounting services.
Whether you want help with your payroll processing, processing VAT returns, invoicing, or general day to day bookkeeping, you can hire online bookkeepers to fill the gap.