Online Bookkeeping Services: Everything You Need to Know

Bookkeeping is crucial to all businesses. It’s the process of recording financial transactions, which are the foundation for economic decisions and compliance requirements.

Without bookkeeping, growing your business is tough since you’d be in the dark about your finances, not to mention unable to meet your tax and licensing requirements.

Do You Need A Bookkeeping Service?

Most businesses opt to hire a bookkeeping service.

Bookkeeping services can help businesses stay organized, manage their accounts, and save time. They can also provide valuable insight into your company’s financial health.

Virtual bookkeeping services can help businesses reduce their costs and increase efficiency.

Can You Do Your Own Bookkeeping For Your Business?

Why outsource when you could do your own bookkeeping? Well, it’s not as easy as it sounds.

It takes time to learn accounting standards. And even if you do, you’re better off spending your those hours on core activities that will grow your business.

That’s why more and more small business owners and even big entrepreneurs delegate bookkeeping to experts to save time and to avoid costly errors.

Do Small Businesses Need Bookkeeping?

What if you’re just a small business? Do you need bookkeeping? The short answer is yes.

Bookkeeping is essential for any business, regardless of size.

You need to track expenses, income, and profits to ensure the accurate filing of taxes. It is also useful for identifying areas of inefficiency and improving overall financial performance.

But with limited resources, SMEs outsource bookkeepers to save money while getting access to professional accounting expertise.

What Are Online Bookkeeping Services?

So what bookkeeping services can you avail of?

• Basic Bookkeeping
• Accounts Receivable Management
• Accounts Payable Management
• Payroll Processing
• Bank Reconciliation
• Tax Preparation Support
• Cloud-based Software Setup

Depending on your needs, you can also look for bookkeepers that specialize in particular industries or accounting software like Xero and Quickbooks.

How Do Bookkeeping Services Work?

So how do bookkeeping services work?

First, your outsourced bookkeeper studies your business transactions. They gather data from invoices, official receipts, transactions from business providers, and bank statements.

And then, they record and categorize these transactions under Assets, Liabilities, Equity, Income, or Expenses.

Afterwards, they can also summarize the financial data (e.g. financial statements, trend analysis, etc.) you can use for business decisions.

What Is The Difference Between Bookkeeping And Accounting?

Oftentimes, business owners refer to accounting and bookkeeping interchangeably. But there are a lot of differences between the two.

The main tasks of bookkeeping are classifying and recording financial transactions in general journals, ledgers, or accounting software.

It involves data entry, bank reconciliations, and generating financial reports.

On the other hand, accounting involves applying more advanced analytics to the bookkeepers’ recorded and summarized transactions.

Accountants are more adept at giving insights into budgeting, forecasting, tax prep, and investment strategies.

Also, they are experts in preparing financial statements (e.g income statements, balance sheets, and cash flow statements), especially certified public accountants (CPA) or chartered accountants (CA).

But in this age, most bookkeepers can also do accounting work. For more advanced financial services, however, you’re better off hiring accountants with proper certifications.

What Do Online Bookkeepers Do?

Online bookkeepers help businesses record their income and expenses, reconcile bank statements, organize financial accounts, and prepare financial summaries. They can also provide guidance and advice on budgeting and cash flow management.

This helps you make sound business decisions, stay on top of business taxes, and avoid financial mistakes.

What Are The Benefits Of Using Online Bookkeeping Services For Your Business?

Instead of hiring an in-house bookkeeper, most companies contract online bookkeeping services. Here’s how you can take advantage.

Saves Time

Hiring expert bookkeepers can free up time from your busy schedule.

Spend More Time On Your Main Business

When outsourcing, you can focus on more essential business tasks with the time you save.

This will help streamline your business operations and allow you to focus on what really matters, growing your business.

Saves Money

A lot of SMEs can’t afford to hire another in-house staff because of the steep pricing. That’s why most outsource their bookkeepers to save money.

Gain access to expert talent at a fraction of the cost.

Maximize ROI

Even with a limited budget, you can maximize ROI on your business investments when you take advantage of outsourcing.

Outsourcing your bookkeepers gives you more value for your money, allowing you to direct capital and resources on areas that are key to business success.

Access To Virtual Accounting Services

When you outsource your bookkeepers, you gain instant access to a virtual accounting service for timely and accurate financial data, no matter where you are.

You save on overhead costs by having experts handle your bookkeeping and online accounting rather than hiring in-house staff.

This makes it easier to stay on top of your finances and to gain more control over your business.

When Should I Hire A Virtual Bookkeeper?

Whether you’re small business owners or a big corporation, hiring a virtual bookkeeper is a great solution.

A virtual bookkeeper can help you manage your finances to free up your time and energy to focus on more important tasks.

The following are some business scenarios where outsourcing a virtual bookkeeper would be beneficial:

• Start-up Phase
• Times of Rapid Growth
• Seasonal Workload
• Tax Preparation
• Dealing with Complex Transactions
• Looking for Cost Savings

There might be other scenarios aside from the ones above. But as long as you need expert financial services, outsourcing a bookkeeper would be a cost-effective solution for you.

How Much Does A Bookkeeping Service Cost?

It’s a more cost-effective solution to outsource to experienced professionals at a fraction of the cost.

On average, the pricing of an in-house bookkeeper in the US costs around $38,783 to $48,138 annually, depending on experience and specialization.

Not a lot of small businesses can afford to hire another local employee. That’s why they outsource their staff.

Outsourced bookkeepers charge around $1,451.14 to $2,303.41 per month, which is more affordable than an in-house bookkeeper.

What To Expect From An Online Bookkeeping Service

There are many advantages to hiring an online bookkeeper:

Cleanup And Setup

Your online bookkeeper will review the current state of your books and make any necessary adjustments. They can also organize your accounts, configure tax settings, and ensure the accuracy of your financial records.

Essential Reports

Need help preparing essential reports? Your online bookkeepers can help you draft your financial statements and other financial reports.

Tax-ready Books

Our expert bookkeepers are experienced and knowledgeable in financial reporting and are up-to-date with the latest laws and regulations issued by the Internal Revenue Service (IRS).

Working With Remote Staff Bookkeepers

With more than 15 years of experience in outsourcing, we will match you with bookkeepers who have the skills and expertise for your business needs.

Here’s what they can do for you.

Schedule

With Remote Staff, you’re hiring a dedicated bookkeeper who can work either part-time or full-time in your chosen schedule.

Data Entry

Our expert bookkeepers can handle the data entry function of your financial transactions and ensure the utmost accuracy.

Reconciliation

Our bookkeepers can do bank reconciliations with precision, ensuring that your records align with your bank statements and credit card statements and noting any discrepancies that may require attention.

Reporting

Need help with financial reporting? Our expert bookkeepers can assist you with preparing financial statements and other financial reports.

Catch Up on Tasks

Hiring a virtual bookkeeper can help you catch up on the backlog for your financial tasks.

Tax Filings

Our bookkeepers are well-versed in tax regulations and can help prepare and organize your financial data for tax filings.

More Time Each Day

Free up your time to do more each day when you outsource to bookkeepers.

Proven Expertise

Our bookkeepers have a track record of delivering exceptional results for businesses with their proven expertise in handling financial tasks efficiently and accurately.

Total Peace Of Mind

Experience peace of mind knowing that experienced professionals are recording and managing your financial transactions.

One-On-One Expert Support

Before starting our working relationship, we will schedule a one-on-one meeting about your business needs so that we can provide a tailor-fitted solution for you.

Dedicated Financial Experts, Just For You

With Remote Staff, you’ll have dedicated financial experts focused on your business, providing personalized support and expertise to help you achieve your financial goals.

How To Start Hiring Virtual Bookkeepers?

It’s easy to hire your virtual bookkeepers through Remote Staff. Just click the “request a callback” button on our page.

We’ll then get in touch with you to discuss your needs and help you onboard the best bookkeeper for your business.

How Do I Choose An Online Bookkeeper?

In Remote Staff, you will not be assigned a bookkeeper. Instead, you get to choose one yourself.

Once we identify your requirements, we will shortlist candidates for you.

And just in case you’re looking for a bookkeeper with specific expertise or certifications that isn’t in our current talent pool, we can also source the right talent for you.

Where Are Your Bookkeepers Located? What Are Their Qualifications?

There are many talented bookkeeping professionals in the world. And one of the best places to outsource one from is the Philippines.

Through thorough screening, we have gathered a talented pool of Filipino bookkeepers with strong accounting and finance backgrounds.

You can even request specific skills and certifications when outsourcing your bookkeeper.

Frequently Asked Questions

Have some inquiries before hiring your bookkeeper? Here are some of the most frequently asked questions we encounter:

Is it possible to catch up if we’re behind on bookkeeping and taxes?

Absolutely! Catching up on bookkeeping is a common problem for businesses transitioning to better financial practices.

Thus, we can prioritize important deadlines until you get up to date on your bookkeeping and tax obligations.

Are Online Bookkeeping Services Secure?

There can be inherent risks such as data privacy concerns or cyberattacks when you outsource bookkeeping services.

With Remote Staff, however, we have our bookkeepers sign NDAs to keep your data safe. Our in-house IT team can also provide guidance and advice on best cybersecurity practices.

How Do We Receive Your Documents? Do You Need To Give Us Your Receipts?

You can transmit documents and receipts online via cloud storage. We can help you set this up if necessary.

You don’t need to send us your physical receipts, but we recommend storing them for your own personal records.

When Will Your Books Be Cleaned And Updated?

The answer depends on your current recording practices. Rest assured, we will strategize the best plan of action to ensure your books are up-to-date.

Also, we can provide guidance on the best practices for the accurate recording and maintenance of your books moving forward.

Is QuickBooks Live Bookkeeping part of your bookkeeping services, and is it a paid service?

Our bookkeepers can use bookkeeping software such as QuickBooks online and offline. But this expertise might increase the pricing of your service fee.

Take note that your service fee doesn’t include your QuickBooks online subscription.

Is Outsourcing a Bookkeeper Worth It?

Yes!

Because of the lower pricing, outsourcing a professional bookkeeper can save you time and money because they already have the expertise to efficiently manage your accounting books.

Additionally, they can provide valuable advice to help you make better financial decisions, which is beneficial, especially to a small business.

What Are Common Bookkeeping Mistakes?

Bookkeeping mistakes can hurt your financial well-being and compliance. Here are some common ones you should watch out for:

• Data entry errors
• Failure to reconcile bank statements and financial records
• Improper documentation and safekeeping
• Incorrect classification of transactions
• Ignoring tax deadlines

Fortunately, our expert bookkeepers can help you avoid these mistakes by meticulously handling data entry, reconciling accounts, recording transactions correctly, and ensuring timely tax payments.

Can A Bookkeeper Do Tax Returns?

Yes! Your expert bookkeepers can assist you in preparing your tax returns.

What Is The Golden Rule Of Bookkeeping?

Accounting revolves around the equation “Assets = Liabilities + Equity.”

It may look simple but this golden rule applies to multiple types of assets, liabilities, equity, income, and expense accounts.

Also, there are specific rules and recording treatments for certain transactions based on Generally Accepted Accounting Principles (GAAP).

Luckily, you don’t have to worry about these when you hire an expert bookkeeper through Remote Staff.

Is A CPA The Same As A Bookkeeper?

No. A CPA is a certified public accountant, while a bookkeeper is not necessarily certified as such.

A CPA is more qualified to provide tax and financial advice, especially for complicated financial transactions and advanced analysis.

On the other hand, a bookkeeper is usually more focused on tracking and recording financial transactions.

How Much Time Does Having a Bookkeeper Save You Each Month?

It depends. Do you do your own bookkeeping? If so, outsourcing this will save you a lot of time.

But even if you don’t manage your own bookkeeping, you can achieve more with the money you save by outsourcing instead of hiring in-house bookkeepers.

You can use this money to hire better staff for your other core business tasks. Thus, you gain more hours of productivity because you can afford a bigger and better team.

Manage your business with gusto by outsourcing your bookkeepers with Remote Staff today!