Top 5 Things to Consider When Choosing Online Bookkeeping Services
Maintaining up-to-date financial records is crucial for any business. But small business owners, who often wear many hats, may not have the bandwidth to document each and every transaction. Here’s where hiring a virtual bookkeeper can come in handy. Not only does outsourcing free up your time so that you can focus on other business duties, it also ensures that your books are accurate.
However, with so many online bookkeeping services available on the market, finding the right fit for your small business might be difficult. Here are 5 factors to consider when choosing a virtual bookkeeper.
Services Offered
Bookkeeping needs vary from business to business, and so do the services offered by bookkeepers. So, the first step is determining your needs. For instance, do you just need someone to keep track of your financial statements? Or do you also need help filing taxes, raising invoices with clients and following them up, preparing financial documents such as profit and loss statements, and payroll management?
Knowing the answers to these questions will help you find bookkeepers who can meet your specific needs.
Qualifications and Industry Experience
Letting someone handle your finances is a serious matter, so you’re going to want to hire someone competent who knows accounting principles as well as tax laws. The best way to ensure competency is by checking their qualifications. Look for an associates or bachelor’s degree in Accounting or Business. A Certified Bookkeeper or a Certified Public Accountant (CPA) certificate also act as endorsements towards a bookkeeper’s competency and knowledge.
Additionally, you should also check whether they have experience working with businesses in your industry. Knowledge of industry-specific financial regulations and trends will prove to be an invaluable asset. It also prevents the bookkeeper from having to go through a steep learning curve.
Pricing
Inquire about the pricing structure of the bookkeeper. Some charge a fixed monthly fee, while others may charge hourly. Have a clear conversation about what is and isn’t included within the price. If you require any additional services, ensure that you know what they’ll cost, so that you aren’t left with any surprises later on. However, make sure that you don’t overshoot your budget.
Scalability
You may also scale up your business in the future, which means your bookkeeping needs may change later on. Make sure that the virtual bookkeeper you choose can handle your future accounting needs, and get a cost estimate for more comprehensive services.
Tools and Technology
Modern technology makes everything easier, including bookkeeping. Advanced cloud-based accounting software streamlines the process, improves accuracy, and allows for real-time financial insights as well as data access. Make sure you choose a bookkeeping service that uses the latest accounting software and tools.
These tools must also be able to integrate with your business tools (such as inventory management tools or point-of-sale (POS) systems) to make collaboration easier. Bonus points if the bookkeeper can provide support on how to use the tools effectively.
Data Security
Financial information is pretty sensitive, so another important thing to consider when looking for a virtual bookkeeper is data security. How do they make sure that their clients’ information is kept secure and confidential? Are the software they use compliant with data protection regulations? Are they following international cybersecurity best practices? Ask these questions and make sure their data security is airtight before you proceed.
Good Communication and Accessibility
You’re probably going to be communicating with your bookkeeper a lot, so they need to be responsive as well as being an excellent communicator. This is especially important when you hire an online bookkeeper. Not only must they be easily accessible in case of any urgent queries, they must also communicate with you and keep you updated. This is key to a seamless collaboration.
Finally, a good bookkeeper must also keep themselves updated regarding tax and business regulations, so that you can stay ahead of the competition.
Ready to hand off your bookkeeping to the experts? At Virtual Bookkeepers, we give you the benefits of having a personal financial expert without the hassle that comes with hiring an in-house team. Contact us now to unlock the full potential of your finances.
