These days, you can’t go very far without hearing about some form of “cloud computing”. Business owners continue to ride the wave of moving more of their operational processes into the cloud. Along with CRM and ERP solutions, virtual accounting is one of the processes which can provide an excellent return on investment even in a short period of time. Let’s look at some of the benefits of implementing a virtual accounting solution that make it a very smart investment.
Reduced labor costs
If you’re going to manage accounting in-house, it’s going to require hiring some staff, once the workload gets to be too much for you to handle yourself. Of course that means paying out salary for your accounting staff, even if it’s only one person. Don’t forget the extras, too - benefits, including vacation, sick pay, and healthcare, as well as employment taxes. When you outsource to a virtual accountant, you simply pay for the services you contract for, and you can forget about all those extra costs.
Reduced risk of loss through insider fraud or theft
No business owners want to distrust their employees, and that’s even more true when it’s a small operation. We like to think of our staff as almost like family members. But it’s a fact that employee theft is very real and very expensive. It’s estimated that it may result in losses of up to $50 billion a year to American businesses, and may very well be the cause of many small business failures. Not surprisingly, the employees mostly likely to commit these crimes are the ones in the most strategic position to do so: bookkeepers and accountants, who have access to your books and even your blank checks. When you outsource your accounting you eliminate this very costly risk. Your virtual accountant has a system of checks and balances, with multiple levels of review of your books to prevent any fraud or even honest mistakes.
In addition to eliminating the costs of the potential accounting staff themselves, you won’t need to pay for everything else it takes to keep those employees under your roof and working optimally. That includes the cost of the office space itself, furniture, phones, and computer hardware and software, to name a few. The virtual accounting firm takes care of their staff, and you only pay for the services agreed upon.
Virtual accounting frees up your time
We don’t mean to sound cliche, but time is money, especially when you’re running a small business. There’s a lot more that you can do with your valuable time, and much of that relates to generating more revenue, which is what it’s all about. Once you stand aside and let the virtual accountant take over the books, your time becomes free to be put to much better use.