Many exploring virtual accounting services do so because they feel overwhelmed handling the day-to-day financial tasks. However, they also struggle with committing to the expenses of dedicated accounting staff. When comparing the cost of adding staff or missing important financial details by overwhelming non-dedicated staff, virtual accounting shines as the most efficient and trusted investment. Here are some of the areas where virtual accounting can save your business money.
The most obvious costs you save when choosing virtual accounting are also some of the highest. Naturally, hiring full or part-time accounting staff brings with it on-the-surface salary, payroll taxes and benefit costs. However, there are many hidden cost with employees, such as expenses in recruiting and hiring (and recruiting and rehiring if the relationship doesn’t work). Don’t forget also, with operations as intricate to your business as accounting, there is an investment in both time and money to train an employee on your business, industry cycles and even existing software.
Speaking of software, bookkeeping software is an often overlooked expense of in-house bookkeeping. There is an initial investment and updates, but you must also look at investments to keep your information properly stored. Unless you’re already using a secure cloud-based software, which is not always common for smaller businesses, you must invest in secure systems for proper backing up of your most valuable data.
Timeliness and Efficiency
If you’re running a business, you don’t have time to chase down financial reports when you need them, much less, work around an employee’s daily or vacation schedule. Virtual accounting allows you to keep costs and expenditures at hand without waiting on late reports, sick days or the holiday season. There are no delays as the accounting staff works on quarterly reports or tax filings. You have complete access to up-to-date accounts at all times.
Forecasting and Accurate Job Costing
The lack of real-time job costing and forecasting often places small businesses at a disadvantage. Without accurate bookkeeping records and financial statements, businesses find it hard to pinpoint true job costs – especially in the service industry. Business owners and CEOs can now evaluate costs and profits as often as they need to and make adjustments to improve their bottom lines.
Targeted Accounting Expenditure
If your volume is low, virtual accounting allows you to hire for only what you need. That’s a little trickier when it comes to full-time or even part-time staff.
Virtual accounting solves the dilemma if you’re struggling between wanting the benefits of professional bookkeeping but not realizing if you have enough work. If you have questions on how virtual accounting can save your business money, talk to us today.