As a business owner, you likely have a number of different roles within your company. It is common for entrepreneurs to wear multiple hats within the company until it grows to a place where it is necessary to add on more employees. There are some responsibilities that are easy to hand over to a contractor or employee because you realize that your time can be better spent elsewhere. There are other roles, however, that are more difficult to let go of because they are so important to the overall success of your business. Accounting is one of those responsibilities that can be difficult to pass off to someone else. Accurate accounting allows you to see where you company is financially and project where it will go in the future. But, as your company grows so will your accounting needs and it will become necessary to get if off of your plate.
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Yes, a virtual accountant can manage employment taxes for your small business, but they can do much more than that. A virtual accountant can provide you with a full range of accounting services. You can verify the credentials of any virtual accountant or firm you are thinking of using just like you would if you were going to hire an in-house accountant. As you look into different virtual accountants and firms treat the process as if you are interviewing these people for a position in your company, because in a way you are. You must be comfortable with the virtual accountant you choose and trust that they can take care of the bookkeeping responsibilities. Using a virtual accountant or virtual accounting firm will allow you to take several steps toward streamlining your payroll, HR, and accounting needs so you can focus on other areas of your business.
As a small business owner you understand the importance of having the support of your local community. The local connections you have can help you develop and build your business. Your very first customers were likely people with whom you have some type of local connection. When you realize the importance of the support you receive from the community you want to do the same for other small business people. So, you may hesitate when you think about outsourcing different aspects of your business. Outsourcing to a virtual accountant is a viable option for many small business owners who need help with their bookkeeping needs. But you may wonder if local CPAs are being negatively impacted as more and more businesses move toward virtual accounting.
The size of your business should not be your main consideration when you are trying to decide if you should get accounting help. If you need help with your accounting then you need to seek out help no matter what size your business is. Perhaps accounting is simply outside your set of core competencies and you need help from day one. Or, maybe your business is growing and you simply cannot keep up with the accounting along with your other responsibilities. Either way, a virtual accountant/firm is a great option for people who are running a start-up or small business. What about larger businesses? Can virtual accounting work or is it necessary to hire an in-house accountant and eventually have an accounting department? Virtual accounting is also a good option for larger businesses that have more complicated and time consuming accounting needs. How is it possible that virtual accounting can work for both small and big businesses?
The early stages of a venture capital startup are both deeply exhilarating and profoundly daunting. Every day involves dizzying amounts of decision-making as partnerships and projects form and coalesce. It's often the make-or-break time in a startup's life- impressive results are demanded in a relatively short time, investors want proof of accomplishment, and all the puzzle pieces need to fit. The reality is that no matter how ultra-tech a startup is, it will face many of the same structural logistics that plague any business. Offices need to be managed, staff needs coordination, payroll and benefits need to be calculated and paid, all while the bills keep coming in. This takes time and energy away from the primary goal of getting up and rolling.