Especially for SMBs (Small and mid-sized businesses), bookkeeping can be extremely challenging. As a small business owner or manager, people will often give you the three most popular options in accounting-- DIY (Do-it-yourself), hire an experienced full-time employee, or let a 3rd-party take care of it. For decades, undoubtedly businesses have been using one of these three options but it doesn’t mean that they have no drawbacks.
With already a full schedule, a DIY would just give you sleepless nights. Hiring a full-time employee for bookkeeping could cost you more money. Now, coming to letting 3rd-party access your financial details needs tons of trust.
Having said that, combined with digital services and technology solutions, outsourcing bookkeeping services has relatively become easier for almost every business.
With everything that’s going around since the beginning of the year 2020, most SMBs have been looking for effective ways to save their financial resources since they are already running short on them.
Lately, every business has started adapting to virtual bookkeeping services as they have been proved to be effective in saving more money when compared to hiring a full-fledged accounting team in-house. Before we take a look at the reasons why you should prefer virtual bookkeeping over conventional, let’s first check what virtual bookkeeping is.
What is virtual bookkeeping anyway?
Just as you guessed, virtual bookkeeping is bookkeeping services handled virtually instead of in-house full-time employees. Businesses will be able to get benefited from virtual bookkeeping without having to deal with unnecessary costs that are usually associated with it.
How can virtual bookkeeping services save your business?
Not just one or two, there are various ways in which virtual bookkeeping can save you from conventional and tiring costly processes of hiring an in-house employee for bookkeeping services. Here are our top 5 that you should consider.
1. Virtual bookkeeping cost Vs. in-house employee cost
When we say hiring a full-time bookkeeper can be costly, we aren’t referring to just salary. There are various other costs that tag along whenever you hire a full-time employee no matter what position you are hiring for such as employee benefits, office space, training cost.
Of course, even virtual bookkeeping services aren’t free. You need to pay a certain amount as a fee but you certainly don’t end up paying all the additional costs that otherwise you would when hiring a full-time employee.
2. Virtual bookkeeping will help you optimize work productivity
No matter how experienced bookkeeper you are going to choose for your business, they will take a sick day leave or need vacation days. Such situations are 100% unavoidable. Worse is your books will be left unattended if your bookkeeper is on leave for weeks. If you ignore by leaving your books unattended for such a long period of time, it could cost you more money in the long run. On the other hand, if you moved your bookkeeping services to virtual, it will ensure your books are always maintained up to date. They don’t need off or even training. They ensure to employ skilled and experienced experts to handle such activities for your business.
3. Skip the expensive hiring process via virtual bookkeeping
Let’s say you found a bookkeeper whose monthly salary isn’t much, but the hiring process can turn to be a real financial burden to you. Depending on the industry, the hiring process can be as high as $5,000 in some cases. There are multiple factors that play part in increasing the cost of the hiring process. Some of them are advertising fees, recruiter fees, and referral bonuses.
Of course, these extra expenses vary from company to company and not all of them have to have these when hiring an employee for in-house.
With virtual bookkeeping, you can completely avoid the hiring process. Apart from standard research to ensure that you pick the right virtual bookkeeping service for your business, virtual bookkeeping will cost you far less than any new hire.
4. Virtual bookkeeping enhances your operational efficiency
You may or may not have good knowledge on either bookkeeping or accounting, your new hire should be experienced enough to do whatever your requirements and needs are. And finding this out can be a little complex. Even after good interviews and talking to the potential candidates for hours, companies do have bad hires. Some companies have even reported that bad hires have cost them more than $25,000.
You might say that it is equally possible to choose the wrong virtual bookkeeping service provider and there’s no denial in that. But from online reviews to personally recommended, it is relatively easier to choose the right virtual bookkeeping service when compared to the wrong in-house employee.
5. Virtual bookkeeping can help your business scale
No matter how many clients you have or how much revenue your business generates, a bookkeeper will cost you as per industry standards. Even when your business is experiencing a tough time or if you are running a seasonal business, you cannot expect your employee to work elsewhere while you work on getting new clients. Will you keep paying your employees when they do not work? Of course, no.
Whereas with the virtual bookkeeping services, providers offer different tiers of services for different size businesses. The result? You have to pay only for what you will get. Even if your business is seasonal, you don’t have to think about keeping them on hold and paying them. Once your business starts to grow and bookkeeping is becoming too much for your in-house employee, you can choose accordingly with virtual bookkeeping.
No matter what kind of business you are running or which industry you are in, every business wants to minimize unnecessary costs as much as possible. You can do the cost-cutting in some effective areas but it may not be an ideal option in the rest of the areas.
With virtual bookkeeping, you can save both money and resources along with getting effective bookkeeping solutions. Regardless of the size of your business, virtual bookkeeping services are a wonderful solution for you.