Owning a service based business gives you the opportunity to serve more and more of your community as your company grows. A growing business is a wonderful thing but it can come along with complications. One of the complications that come with business growth is more time consuming and complex accounting responsibilities. If you are looking into options for accounting help you may wonder if virtual accounting is a good fit for your service based business. Service based businesses do have some unique needs because the nature of the service industry is to have a large amount of employees, clients, and transactions to deal with on a daily basis. Keep reading to learn how virtual accounting can be a good fit for the unique needs of your service based business.
- Multiple employees
Running a successful service based business often requires a large number and type of employees. For example, if you own a landscaping business you likely have employees to help with the business side and the labor side of your company. You may have fulltime, salaried employees in the office as well as hourly and contract workers out doing the landscaping jobs. If you have a good sized operation you may have several crews working during the busy season of the year. When things slow down as the weather changes you probably cut back on the amount of people who are out landscaping. This ebb and flow of workload and employees is not uncommon in service based and seasonal businesses. However, it does make the process of accounting and payroll more complicated than in more predictable businesses. Virtual accounting is a good fit for these types of situations because you can customize, change, and update the services you require as the needs of your business change. In addition, when you work with a virtual accounting firm you have access to a whole team of accounting professionals who can help with your account anytime things get busy.
- Multiple types of customers
As the owner of a landscaping company (or any other service based business) you likely have a large number and type of customers. For example, some customers may be set up on a bi-weekly plan during the warm months of the years. Others simply call in when they want or need you to come out and help. This can make it difficult to keep up with what money has come in and what is still outstanding. As your business grows, the job of keeping up with all of the invoices and receivables will take up more and more of your time. A virtual accounting firm can take over this time consuming task for you and make sure that the money is coming in and nothing falls between the cracks.
- High volume of transactions
Right along with multiple employees and customers in service based businesses come a high volume of transactions. How many yards to you have to mow or landscape per year to create a thriving business? The most basic answer is, a lot! You likely have small transactions from customers who only need occasional help and large transactions from commercial clients that need constant attention. In addition, you could have clients that pay when the work is completed, pay after you send an invoice or pay on a consistent monthly schedule. It can be a challenge to keep up-to-date and accurate accounting records when there are so many different types of possible transactions. A virtual accounting firm can help keep up with the various types of transactions and even compile financial reports for you when you want to take a look at the overall financial wellbeing of your business.
The main reason virtual accounting is such a good fit for service based businesses is because of its customizability. You can work with the accounting professionals at a virtual accounting firm to create a plan that works for your ever-changing business.