There are several factors to consider when your small business grows into a big business. It is exciting to see your hard work pay off with increased growth, but that growth brings new challenges. One major challenge for big business owners is the increased demands related to bookkeeping. In the beginning stages of a new business, it is common for the owner to have many roles, including the role of accountant. When the business is small, the bookkeeping needs are often small as well. However, accounting demands will increase and become more complicated as the business grows. In order to spend the time necessary to continue growing your business, you will eventually need to hire help for bookkeeping. The options for getting the help you need with accounting include hiring a full-time bookkeeper or a virtual accounting department. Which one does your big business need?
There are several advantages to hiring a full-time bookkeeper. The main advantage to an in house, full-time bookkeeper is ease of access. When you employ a full-time bookkeeper you will have access to that person anytime he or she is at the office working (and likely after hours as well). It is convenient to be able to walk across the room or building and ask your full-time bookkeeper a question. Another advantage of a full-time bookkeeper is that he or she will be working full-time on your business. A full-time focus on the financial well-being of your company will likely help identify areas where you can cut costs and ultimately save money. In addition, a full-time bookkeeper will be more likely to catch any mistakes or discrepancies in the accounting process than if you continue to do the accounting on your own. Finally, a full-time bookkeeper can help you and your employees streamline the accounting process. When you and your employees spend less time on accounting related tasks, you will all have more time to focus on other responsibilities.
There are some drawbacks to hiring an in house, full-time bookkeeper. There are many costs associated to bringing on a full-time employee. Along with a salary, hiring a full-time employee often includes providing benefits such as insurance and paid time off. In addition, it may be difficult to determine if there is enough work to keep a full-time bookkeeper busy for forty plus hours per week.
Virtual Accounting Department
Hiring a virtual accounting department comes with its own set of advantages. When you use a virtual accounting department, the majority of the accounting tasks and communication will take place online. You will have access to your company’s most up to date accounting information any time you have access to the internet. In addition, with a virtual accounting department you will have a team of people who know the financial details of your company. You will likely be able to get in touch with someone who can help if you have questions if there are multiple people who are familiar with your account. In addition, when multiple people are looking over your information, mistakes are less likely to go unnoticed. Finally, you will not have to go through the process and expense of hiring a full-time employee if you choose to go with a virtual accounting department. A virtual accounting department will require a monthly fee to provide services.
One of the possible drawbacks of a virtual accounting department is that you will not have a person in your office working on bookkeeping. You may feel more disconnected from the accounting process when it is done offsite and primarily online, especially if you were previously doing all the bookkeeping.
There are many factors to consider when trying deciding if your big business needs a full-time bookkeeper or virtual accounting department. The answer will depend on your preferences and the specific needs of your company.