So, your company is growing and your business is expanding faster than you planned. Way to go! By now, you’ve probably figured out that success brings its own set of problems.
Consider the widening gap between your cash on hand and the amount of cash you’ll need to float your incoming purchase orders. Even if you aren’t experiencing a cash crunch, the recent influx of income means keeping track of all your accounts has become a full-time job in itself. Mismanaging growth can be just as harmful to the health of your business as a shrinking bottom line. Perhaps you’ve considered an online bookkeeping service but just really aren’t sure how to go about signing up for one or how to figure out which one will be best for you.
You’d be surprised at the number of companies—both up-and-coming and well-established—that use online bookkeeping services to free up time to focus on the business itself. There are also a lot of secondary benefits that come from these types of services that you may not have considered.
Let’s walk you through what you need to know about online bookkeeping services and what they can do for your company.
How is bookkeeping different from accounting?
Before you drop a bunch of money on bookkeeping services, let’s go over what bookkeeping is.
Bookkeeping, simply put, is the day-to-day process of tracking money in and out of your company. It differs from accounting in that the responsibilities of a bookkeeper are narrower in scope. You wouldn’t expect a bookkeeper to structure accounts to maximize tax savings, for example.
Accurate bookkeeping is crucial to most important business decisions, which is also why a lot of business owners will leave it to the professionals.
Bookkeepers categorize revenue generated, as well as company expenses. Both will play an important role in helping you determine how much your company is making and how your money is being spent.
What will a bookkeeper do for you?
First, you should know that there are tons of different bookkeepers and their precise methods can vary from one firm to the next, but the function of a bookkeeper usually stays the same.
Tracking of Everyday Finances
These individuals maintain a record of your company’s day-to-day transactions.
They collect records of purchases, payments, receipts, and sales. Whether you’re dealing with credit cards or cash money, the bookkeeper will be responsible for keeping track of every single transaction.
They can also help to ensure that your company’s bills and payroll are paid on time each and every week, every other week, or every month.
Maintaining a Daybook
It will be the bookkeeper’s responsibility to maintain your company’s daybook. Basically, a daybook is just a journal that details your company’s transactions your company on any given day.
In general, the activities will be laid out in a chronological order. There are several different types of daybooks, including the sales daybook, cash daybook, and the general journal daybook. With the right daybooks, you’ll always know what your company sold, how much revenue it generated, and what expenses you paid.
Finding the Right Bookkeeping Service for Your Business
Before you go out and start seeking out just any bookkeeping service, you really need to sit down and consider what type of services your company needs.
For instance, there are a lot of bookkeeping companies that offer payroll assistance, tax assistance, accounts payable, and accounts receivable. However, there are some companies that are capable of handling your whole accounting department.
Some bookkeeping services only offer cash-based accounting which won’t do you much good is your using an accrual-based method of accounting like most companies do. Also consider where they are located. A US-based company might be a better fit if your company does its business in the US. A Canadian bookkeeping service is probably going to be more familiar with the ins and outs of how to track taxes that are country or province specific. If you need 1099s at the end of the year, a US-based company might be the best bet.
Online bookkeeping services vs. offline bookkeeping help
Something to consider here is whether you want to hire an in-person bookkeeper that will work in your office or whether you want to use an online bookkeeping service. Online bookkeeping means transparency. You can see all of your records at any time. If you opt to go with online accounting software, all of your financial data is at your fingertips pretty much no matter where you are.
While it might be convenient to have a physical bookkeeper on hand, good online bookkeeping services have friendly, knowledgeable representatives that are available and easy to reach if something goes wrong.
Keeping everything online also means that your bookkeeper isn’t constantly neck-deep in papers. All of the information is well-organized in one place, which makes it easy to create reports and makes tax season a breeze.
Online bookkeeping also tends to be cheaper. You are only paying for the services you need instead of keeping on a full-time employee. You also don’t have to pay to put them through the entire new-hire process, which can be rather expensive, with all the requirements needed to ensure companies are hiring the proper people. The expense continues to grow, as you hire more people.
Honestly, most modern businesses would do better with a good online bookkeeper that can keep up with steady growth.
Your Business Needs These 13 Digital Security Solutions – Here’s How To Get The Most Out Of Each
How would you characterize your organization’s digital security posture? If you’re not sure how to answer this question, or perhaps would prefer not to answer it at all, you’re not alone. Countless decision-makers, from uber-competent CTOs and CISOs to CEOs and COOs who couldn’t code…
Louisiana And Oklahoma Introduce Digital Identification To Prevent Fake ID Use
Digital ID in Louisiana Utilizing digital IDs has been a commonly broached topic for a while now. Although most states are only either deliberating their helpfulness or in the utmost initial stages, Louisiana has moved forward. The primary introduction of this technology was done back…
ScanGuard Review – Here is What You Should Know
Doesn’t it sound good and satisfying to have a goop-performing antivirus that is reliable enough? Yes, it is. For that reason, you need to be extra careful when you are in search of a good antivirus. Put all the necessary factors into consideration so that…
The Emerging Need for Social Media Security
By the time you’ve finished reading this sentence, nearly 700 passwords have been stolen from social media accounts across the world. Social media security breaches have the potential to cause up to $6 trillion in cybercrime damages by 2021, up from $3 billion in costs…
Which New Lorex Security Camera Is Right for Your Home?
Keeping your family and your possessions safe requires a proactive approach, and one way to protect what you care about is with a security camera system. Lorex Technology is well known for their security camera solutions, and their two newest products will change the way…
- 3D Printing
- App Dev
- Artificial Intelligence
- Arts and Entertainment
- Big Data
- Blockchain Tech
- Business Technology
- Car Technology
- Cloud Computing
- Cloud Storage
- Computer and Technology
- Conference Calling
- Coupons and Deals
- Cyber Security
- Dark Left 1
- Data Center
- Data Recovery
- Digital Arena
- Digital Marketing
- Edu Tech
- Email Marketing
- Google Glass
- Guides and Tutorials
- Health and Fitness
- Home Improvement
- Home Security
- Internet and Businesses Online
- Internet Marketing
- IT Careers
- Mobile Apps
- Mobile Security
- New Tech
- Online Shopping
- Project Management
- Reference and Education
- Reputation Management
- Sales & Marketing
- Shopping and Product reviews
- Small Business
- Social Media
- Tech Trends
- Technical Support
- Technology in Education
- Tips & Tricks
- Tips And Tricks
- Video Conferencing
- Virtual Reality
- Wearable Technology
- Web Design
- Web Development
- Web Hosting
Ticking The Box VS Going The Extra Mile: Is Automation Hurting The Customer Experience?
The modern small business has a significant amount of electronic communiqué to deal with day-in and day-out. Most likely, they’ll also have a website that’s a large part of their marketing presence. That standalone site and/or their social media presence can become either highly cost-effective…
How Reinvesting Profits Can Help Your Company To Grow
Making a profit is the obvious goal of any business. But what should you do with those profits once you’ve made them? Two immediate answers spring to mind: save or spend. There is a third option, however, which involves keeping your money moving while making…
How to Immediately Improve Your Online Security
While the internet might seem paradisiacal, danger lurks in the obscurity of it. Apart from outsourcing your IT needs to specialists like IT support companies in London, there are immediate measures you can take to ensure your online world is as secure as the home…
Everything You Need To Know About Cybersecurity In 2019
With long workdays and jam-packed weekends, it’s a godsend that we can do most of our shopping, social interaction, and many other day-to-day tasks from the convenience of our computers and mobile devices. The internet has been making our lives so much easier for the…
4 Reasons Why You Should Upgrade Your Cybersecurity Right Now
Decades have passed since the phenomenon called the internet, cybersecurity is still very much a threat to businesses and individual users alike. Considering how much money cybersecurity companies invest to bolster their solutions, you would think that cybersecurity threats would be a thing of the…
Why Small Businesses Need A Web Application Firewall
Today, cyber security is one of the primary concerns of small businesses and large tech companies alike. The threat landscape is ever-evolving, with increasingly sophisticated hackers racing to thwart cyber security experts as they build stronger lines of defense. On top of that, the numbers…