Going from traditional to online bookkeeping has recently become an easy process for small businesses since online bookkeeping services have emerged.
They are a virtual team of both bookkeepers and accountants that allow you to send your books to them so they provide monthly, quarterly or annual bookkeeping, accounting, and payroll services remotely rather than on-site.
How Does It Work?
Usually, you will be given simply to use online accounting software for you to record transactions. Many online bookkeeping services use various top name accounting software products for their simple accounting knowledge to use it.
Along with this, you have an option of bookkeeping services. When you send invoices, bank and credit card statements electronically or via post, a bookkeeper will enter your purchase invoices into the system, track and analyze aged creditors and aged debtors from the invoices you may have raised. Your bank and credit card statements will be reconciled.
The Benefits to The Small Business Owner
Business owners need real-time accurate accounting information to manage their business. Below are the benefits to businesses that have their bookkeeping outsourced:
* Online accounting software saves storage costs and space that desktop software would use for backups. All your data is backed up offsite.
* You need less office space to store your paper documents for the next six years. The tax authorities accept electronic files, so you can upload PDF invoices to a Dropbox account. Also, you can keep original files, if you want to, and just scan them and send them to the bookkeeping team.
* It cuts the cost of salaries to in-house bookkeeping staff.
* It reduces or completely frees up your own time if you were previously working on the accounts.