If you’ve been reading this blog, I hope we’ve given you some idea of the value of outsourcing your bookkeeping and other financial tasks to a virtual accountant. It’s one of the most effective ways that a small or growing business can save both time and money, freeing up resources so that you can focus your energies on more crucial activities. This being said, we understand that you may still have some reservations about handing over your finances to an outside team who promises to manage it all “in the cloud”. While cloud computing has become a hugely popular trend in the past few years, we understand that it opens up some new concerns. One of these is the matter of how safe it is to transmit your financial information to a virtual accountant.
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As a business owner you have likely worked in a variety of capacities in your business. Limited resources during the early stages of a business often make it necessary for an entrepreneur to fulfill many, if not all, of the roles related to running the company. But as your business grows it will become necessary to bring in the help of certain professional services in order to get everything done and help your business run more smoothly.
The primary function of profit and loss (P&L) statements is to show the profitability of your company. If your business hasn’t been making profits, you can use your P&L to understand why by looking at the revenue coming in and expenses being spent. In short, the P&L takes all the income and subtracts all expenses.
Part of running a successful business is keeping your expenses as low as possible. However, you do not want to cut expenses so much in certain areas that it impacts the quality of the services you receive. Accounting is one area where you may be concerned that paying less means you are getting a lower quality of service. Thankfully, you do have options for high quality accounting help that costs significantly less than having a fulltime accountant. If you suspect that you are currently paying your accountant too much, here are two ways you can be sure.
There are some situations in which it is easy to determine if someone you have hired is doing a good job. If your car stops working you can conclude that the mechanic did a good job once the car is up and running again. When a dentist fixes a tooth that was causing you pain, relief from that pain is likely the only evidence you need to feel like it was a job well done. But, sometimes it is more difficult to determine if someone you have hired is doing a good job. For example, how do you know if your bookkeeper is doing a good job? Accurate bookkeeping is an important part of running your business so you need to do more than simply hope or assume that you have a high quality bookkeeper.