Congratulations! You have decided to give up “do-it-yourself bookkeeping” and outsource your books to a professional. That means accurate, up-to-date books, a smoother tax season, and more time to focus on building your business. Now the million-dollar question: Who will take care of all the bookkeeping for you? You have two main options: hiring local accountants or hiring “virtual” accountants. There is also a third option – hiring an in-house accountant to do this for you but in terms of price, this is a huge leap over DIY bookkeeping.
Let’s look at the pros and cons of each one so you can decide which one is right for you.
Hire a local Bookkeeping Service
A local bookkeeper is a person or accounting team close to your company.
This is a good choice if:
● They appreciate meeting your accountant face to face.
● You rely on physical records to run your business and don’t use online banking or payment systems like Stripe.
This is How Local Bookkeeper Works
In general, there are two ways to outsource your bookkeeping to a local professional: a freelancer
or a company.
● A freelance bookkeeper will work with you personally to finalize your work. Freelance bookkeepers may be able to work online, in person at your company, or both. Solo practitioners have different skills and experiences.
● Your second option here is to work with an accounting firm. Firms typically charge more than a freelance accountant. However, they usually offer some “assurances” that solo accountants cannot. For example, their accountants can be professionally certified. And in the event that someone who manages your books needs to be on leave, another bookkeeper can take over, so you don’t have to worry about service gaps.
● A freelance accountant or firm will work outside of your company – they are not a contractor or an employee. Try to find one that gives you secure, instant access to your finances.
Another Important Feature Security.
Make sure the person you hire can be trusted to manage your company’s financial information. And never give an accountant control of your treasury functions: when it comes to processing investments, signing checks, or making online payments or transfers, you should be the sole signatory.
“Virtual Book keeper” may sound a little dated, like a Windows 95 application, but this (admittedly awkward) term refers to a popular, paperless way of managing your books. Virtual accounting just means that someone else is doing your books for you online.
It combines the best parts of accounting software and traditional accountants. When you hire a virtual accounting service, you get accountants to take care of your books and software to monitor your finances.
It’s a good option if you:
● Use online banking and be comfortable on the web
● Prefer a monthly flat rate to hourly billing
● Would you like to have online access to your financial data via a mobile app?
● Chat online or on the phone rather than in person
When professionals create your books, it saves time and gives you security. And the advantage of working with an online service means that you can store your data securely in the cloud and access your financial data anytime, anywhere.
This is How Virtual Book keeper Works
Virtual accounting connects you with real accountants through a secure online account. A first-class service automatically downloads your expenses through online banking and through your merchant, so you don’t have to send out receipts. During tax time, an online accounting service can also offer you a year-end finance package that includes all of the financial statements your accountant needs to file your small business tax return.
If your business is growing beyond the solutions you cover, it likely means you will need to hire an in-house accountant.
It is up to you to decide whether your company can afford an in-house bookkeeper. Their standard salary is between 35,223 pounds and 44,620 pounds per year before income taxes and benefits are taken into account, according to Salary.com.
If you need in-house assistance but cannot afford to hire a full-time accountant, consider hiring a part-time worker and increasing their hours as needed. Some companies also hire an accountant part-time but assign him additional administrative duties to create a full-time position.
Local vs. Virtual Vs. Internal Bookkeeper
In summary, here are the options you need to consider when outsourcing your corporate accounting. Whichever accounting solution you choose, make sure it provides accurate financial statements, tax-ready books, and a secure way to store and access your company’s financial records and data.
More Read: Hire Book Keeping Services