Online Bookkeeper - Why Use one?
We have gone into detail in the past about who and what online accountants are. This article will explain how online bookkeeping works and what the benefits are when hiring an online bookkeeping service.
What Is Online Bookkeeping?
Online bookkeeping is a term that covers a wide variety of online bookkeeping services. We’re still talking about the usual bookkeeping tasks, but this time you won’t be dropping off a stack of papers at your bookkeeper’s office.
For the most part, those services all share a few key components.
- Your bookkeeper is in the computer - Ok, well not really in the computer but you’ll usually communicate with your bookkeeper via email and video chat.
- Cloud-based bookkeeping software - Online bookkeepers will use a version of cloud-based bookkeeping software like Xero or QuickBooks Online.
- Your shoebox is digital - Your online bookkeeping service will give you the tools to digitize all of your documentation so you’ll avoid the mess of physical receipts.
While online bookkeeping usually shares the components noted above, not all bookkeeping services are created equal. Check out our guide to bookkeeping services for more info on what we consider top-notch bookkeeping service.
Now that you have an idea of what it is, here are our 7 reasons to hire an online bookkeeper.
7 Reasons to Hire an Online Bookkeeper
1. Save Your Time
If you’ve been doing the bookkeeping yourself, hiring an online bookkeeper is going to give you your evenings and weekends back. You’ll be able to spend more of your free time doing the things you enjoy.
The streamlined processes implemented by your online bookkeeper will also mean you’ll spend less time on administrative tasks during your working hours. Focus on the tasks that you’re good at and that drive your business forward.
2. Scalable Bookkeeping
An online bookkeeper will be able to grow along with your business.
In the beginning you may only need a bookkeeper to record your financial transactions every quarter. As you grow and your business becomes larger and more complex, you will need help with additional bookkeeping services.
An online bookkeeper can help you with:
- Monthly or weekly transaction recording
- Payroll
- Employee expense reimbursements
- Collecting receivables
- Making payments
- Filing sales tax returns
- Preparing financial reports
- Liaising with your accountant
Take your business to the next level with scalable online bookkeeping.
3. Only Pay for What You Need
Each separate service can be added and removed so you always have the level of service that matches the needs of your business.
Compare this to keeping a bookkeeper on staff. You may be paying for hours that aren’t needed. Or if your business grows, your internal bookkeeper may fall behind due to increased workload.
4. Always Know Where You Stand Financially
With cloud bookkeeping software, you can login to view your financials anywhere there is internet access. With two clicks of the mouse you can find:
- How profitable you were last month
- How much cash is in the bank at that exact moment
- Amounts owed to you from customers and clients
- How much you owe to suppliers or in sales taxes
- How much you pay to each supplier every month (ugh so many software subscriptions)
And many more useful reports at your fingertips.
5. Ditch The Mess
You’ll never have to deal with piles of paper now that your shoe box is a virtual one. All of your receipts and invoices will be stored online in the cloud.
Programs like Receipt Bank scan your digital receipts with optical character recognition and pull out the pertinent information. Your receipts will be saved online and categorized by date, supplier, amount and type of purchase. Easy.
6. No More Software Version Control
When desktop bookkeeping software was the only thing going, software companies would release new versions each year. If you wanted to keep up with sales tax changes or even have the ability to open a newer bookkeeping file, you had to buy the new edition each year.
Thankfully, we’ve moved on to cloud-based software which is kept up-to-date automatically. Companies like Xero have a road-map of new features and updates that are automatically released as they come out.
No more buying and installing the new version every year.
7. Secretly Check In on Your Bookkeeping Progress
Having an online bookkeeper means that you have access to the cloud-based bookkeeping software and you can log in and view the work in progress at any time.
This is a little bit tongue-in-cheek, but it’s still a very powerful feature. Hopefully this isn’t an issue because your bookkeeper has earned your trust by doing a great job. However, it sure is comforting to know that you can see the progress of your bookkeeping whenever you like.
Looking for an Online Bookkeeper?
Avalon Accounting offers full service online bookkeeping and accounting systems setup all wrapped in a neat package. Check out our services or break the ice if you would like to chat with us about how we might be able to help.
We’re not pushy and want everyone to walk away with some useful information, regardless of whether you hire us or not.
