How Can a Virtual Bookkeeper Help Your Business?March 31, 2017
Is manual data entry costing your company? Need someone to help move your business forward? It might be time to hire a virtual bookkeeper.
Many different duties and responsibilities must be done to keep a business running smoothly, which can sometimes be overwhelming for a small business. Many larger businesses have no trouble handling these responsibilities and corresponding expenses, but smaller to midsized businesses are at a disadvantage. How do businesses cope with this shortcoming? A virtual bookkeeper could help.
What problems do businesses run into?
- Spending too much time managing company cash flow
- Lack of business continuity plan, but need to forecast the future
- Inefficient accounting system
- Manual data entry—inconsistent and sometimes inaccurate.
- Monthly financial reports aren’t cutting it (need weekly)
- Dealing with high employee turnover
- Keeping up with technology is either difficult or impossible
- Seasonal highs and lows sometimes make it tough to predict cash flow and budgeting
- Financial reporting not received in timely manner
- Multiple locations operating as separate businesses—difficult to keep track of books
- Startup businesses might need help with “non-core” tasks when launching their businesses.
What services does a virtual bookkeeper provide?
A virtual bookkeeper can provide a number of services to your business:
- Accounts payable management (vendor bills and payments)
- Accounts receivable management (customer invoices and collections)
- Bank reconciliations (checking and credit cards)
- Electronic document management
- Inventory management
- Recording and reconciling payroll transactions
- Revenue reconciliation with bank deposits
Now, let’s get back to that long list above...how would a virtual bookkeeper help?
Problem: “Spending too much time managing cash flow”
Solution: A virtual bookkeeper can perform regular reconciliation of bank accounts (couple times per month) and can prepare cash flow forecasts as frequently as your business requires.
Problem: “Keeping up with technology is either difficult or impossible”
Solution: Virtual bookkeepers often invest heavily in developing and using advanced technologies that make your business operate more efficiently. Usually, these technologies are available to businesses once they partner with a virtual bookkeeper. This frees up time to complete more critical functions.
Problem: “Manual data entry is inconsistent and sometimes inaccurate.”
Solution: A virtual bookkeeper has the expertise to automate certain functions and processes, helping reduce manual data entry and errors and costs associated with it. Since automation is more efficient, it results in increased profitability for your business.
- Access to seasoned bookkeepers and accounting professionals without having to go through the rigorous hiring process.
- Financial confidence for startups
- Increased efficiency
- Works directly with your CPA, to provide them all needed documentation to make their job easier.
- Increased profitability
Interested in outsourcing your bookkeeping functions? KLR Cloud Accounting can help. Contact us today.