Financial management has come a long way since the baby boomer era; smart watches have replaced beepers and online bookkeeping is the IoT version of a paper ledger. What is the benefit of online bookkeeping? It allows an accountant to provide bookkeeping services for a remote client where both can securely login from any where at any time to view the same data. Gone are the days of showing up with a shoebox of receipts to your local CPA. Online bookkeeping has transformed the way we do business, and who we can engage as our outsourced bookkeeper.
Brick and mortar buildings are becoming more remote as well with the advent of cloud computing; a rise in virtual offices has created a more convenient employment opportunity. Telecommuting situations are becoming more common as companies look for creative ways to find a balance between workload and staffing arrangements. A virtual bookkeeping arrangement can be beneficial to both the business and the bookkeeper in terms of cost and flexibility.
Online bookkeeping permits the accounting professional to telecommute instead of physically working at a client’s office. Aside from the work location, there is not much difference between a traditional in-house bookkeeper and an outsourced accountant. They both use your preferred accounting software to post financial transactions, review and update statements and reconcile accounts.
The business grants the bookkeeper remote access to its financial documents and software. The bookkeeper signs on to the company’s secure network from his/her computer and accesses the documents just as he would have logged onto a non-site company computer. If the bookkeeper is employed by the company, they will paid according to the employer’s payroll policies. If the bookkeeper is working as a lone contractor, they will invoice the business for the services performed and the client will send payment according to its contractor payment policy and a 1099. If they employ an online bookkeeping professional service, then it is the same relationship as any other vendor and the employment taxes as well as healthcare costs are not the liability of the business.
Online bookkeeping grew in popularity over the past five years not just for the convenience and flexibility, but also the cost savings associated with the technology. Online bookkeepers do not require office supplies or space, and those working as contractors require no benefits, insurance or employment taxes – an enormous savings for the employer. Outsourced bookkeepers like BooXkeeping offer flexible availability and can work as little or as much as the business requires or needs; this can be especially beneficial for small businesses that may not need a full-time on-site bookkeeper or whose financial services needs fluctuate. Another great fit is for company’s that plan to scale or don’t want to worry about employee turnover!
For more information on how you can outsource your bookkeeping today contact us for your free consultation.
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