Outsourcing is a normal, and even celebrated step in running a successful business – but, is it smarter to outsource to a third party or hire your own employee? The same thought process applies when it comes to your bookkeeping and accounting – should you invest in online bookkeeping services or should you look locally or in-house?
There are benefits to all options, and much of it relates to what your business is, your business size, and how you plan to operate your business – along with what is currently available to you. You’ll need to consider what is financially beneficial for your business along with what is going to be the best for your business’s growth long term.
No matter what option you choose, investing in a professional bookkeeping and accounting firm to help you organize or fully handle your business’s finances is a necessity to have a clear overview of how your business is performing.
Both a program that provides bookkeeping services and firms that function primarily online could be considered online bookkeeping services. The one that best suits your business needs depends on how much you want to DIY your finances.
One of the most popular online bookkeeping services for DIY’ers is Quickbooks. Quickbooks is a program that tracks your business finances and is perfect for small businesses – single member or less than five employees – that allows you to managed your bookkeeping and accounting, provided you’re prepared to dedicated the time necessary to input/label transactions.
The other option, bookkeeping services provided by a virtual firm or bookkeeper, is ideal for businesses that are prepared to outsource their bookkeeping. Bookkeepers from virtual firms still give you all the benefits of local firms, but typically have a higher capability of adapting to rapid changes and fluctuations in your business.
Online bookkeeping services are designed for businesses that are more comfortable working outsourcing their bookkeeping vs. hiring in-house accountants. This type of bookkeeping is designed for start-ups, non-profit organizations, corporations, family owned businesses, online business owners, and more.
When you feel that doing your own bookkeeping is becoming overwhelming – or you’re struggling to take care of your books on your own – it’s a sign that you should look into a bookkeeping service. Business growth stems from clean systems and understanding of your business functions and growth, including your finances.
Connecting with an online bookkeeping firm can also be less intimidating than an in-person firm. It’s okay to have books that “get out of hand” or seem “messy” before working with a bookkeeper, but that doesn’t mean you feel any better about showing it off to someone, particularly a professional. Online bookkeeping takes away some of the confrontation while allowing your business to get the support it needs.
If you do not currently have a bookkeeping system in place, yes, you should invest in an online bookkeeping service. Whether that’s to DIY it on your own or connect with a virtual firm – your business needs financial organization.
If you currently have a bookkeeping system in place, it’s important to think about the time you’re dedicating to maintenance, if it’s being done correctly, and, if you have a bookkeeper, if you trust their work. After doing a self-assessment, you’ll be able to establish whether a virtual bookkeeper is for you.
If you’re ready to get started with a virtual bookkeeping service, reach out to ModVentures today.