The Difference between Onsite and Offsite Bookkeeping
There are two types of services a bookkeeping firm provides, Onsite and Offsite bookkeeping.
Onsite Bookkeeping is where a bookkeeper comes and works in of your office. This is very similar to having an employee working from your office where they use your office equipment and supplies and have access to all of the required accounts and invoices they need.
Offsite Bookkeeping (also known as virtual bookkeeping) is where the bookkeeper works from their own office and are sent the appropriate documents like invoices, bills, bank statements, etc.
The main advantage of offsite bookkeeping is that it is cheaper than onsite bookkeeping as you are not paying for the traveling time or petrol for the bookkeeper to come to you. Some firms send their express courier service to pickup your documents. If you are a computer savvy, you can scan your documents and email or upload to their website. You can also fax your documents. While sending large number of invoices, bills and statements by email or fax certainly look more time consuming, these methods are good when you only need to send one or two documents, like a missing invoice, or the bank statement etc.
Another important thing to remember is to make sure you know what software your bookkeeping firm uses. Although we all like bookkeepers with several years or even decades of experiences, they might be using software that is outdated or almost outdated. At the time of writing this article, QuickBooks and Simply Accounting are two most popular software that most bookkeepers are using.
Why is Bookkeeping Important for Your Business?
If you’re a person who owns or is starting up a business, but doesn’t have a bookkeeper, you may find yourself struggling to deal with all of your finances down the road. Keeping track records and accounts of your daily business affairs can take up a lot of time in your already busy schedule. Bookkeepers will be able to take the stressful load off of your shoulders.
An onsite bookkeeper might work best for you if you are hoping to talk with someone face-to-face and you would like to meet them in person, so you know who is handling your records. An offsite bookkeeper might be more suitable if you require consistent and efficient virtual Bookkeeping Services Parramatta services at an affordable rate. Whichever type of bookkeeping meets your needs, Business Adviser is a good resource if you are struggling or need help managing the finances of your business.
Which Option is Best for My Business?
When deciding on what type of bookkeeper you’d like to hire for your business, it’s best to ask yourself these important questions:
How many hours do you need your bookkeeper to work each week?
Do you prefer communicating through emails or discussing finances in person?
Do you have the time to sit with a bookkeeper on a weekly or monthly basis?
One benefit you’ll receive regardless of the type of bookkeeping service you choose is the ability to save time and money by having a bookkeeper manage and organize your expenses. Making the decision to switch to outsourced bookkeeping is a great investment. We offer custom bookkeeping and accounting services in order to better suit the client. If you’d like remote services but prefer monthly reports in person we can find a way to accommodate you. Other options we include are custom payroll services in order to match the size of your business with the amount of work that needs to be done.
Bookkeeping Services Explained
1. Accounts Payable:
Accounts payable is the process of tracking expenses. When a bookkeeper is handling your books it’s important they record invoices and make on-time payments to vendors. A good bookkeeper will thoroughly examine all invoices to avoid any overcharges, fraudulent activity or unjustified fees. In order to avoid any late fees we make sure all bills are paid in a timely manner and help maintain good relationships with all vendors.
2. Accounts Receivable:
This process involves tracking the sales side of the business. How can a bookkeeper help with accounts receivable? Hiring a bookkeeper to manage your accounts receivable will help you properly track sales, create invoices and record fulfilled payments to your account. For some businesses, invoices can be a timely process, requiring many important details, others simply add the product or service and send it over. Whether the process is complex or simple a bookkeeper can help organize sales and make sure no detail is left out.
Managing your payroll is an important task that’s vital to keeping your employees happy and complying with tax obligations. Payroll involves paying employees salaries, hourly wages, vacation, holidays, commission and bonuses. A bookkeeper can help you organize a seamless system that keeps track of part time, full time and freelance employees, making sure they’re paid accurately. If you currently have payroll policies in place MM Accounting and CFO Solutions is happy to help make sure they’re being properly followed.
4. Finance Reporting:
Whether your business is big or small financial reports can help you gauge how well your business is doing or where you may need improvements. A major benefit to hiring a bookkeeper is receiving accurate reports on balance sheets, income statements, accounts payable and receivable. Another great benefit is the ability to receive custom reports that are specific to your business. For example, if you’d like make certain the cost of a job vs. what your paying employees is accurate, we can create custom financial reports.
What is Virtual Bookkeeping?
Virtual bookkeeping allows a bookkeeper to telecommute (i.e. in the cloud) instead of physically working at a client’s office. We could be in the same town or halfway across the world. Aside from the work location, there is not much difference between regular bookkeeping services and a virtual arrangement.
Differences Between a Virtual and Traditional Bookkeeper
A Virtual Bookkeeper does all the things a traditional part time bookkeeper does. There are two primary differences between them. First, a Virtual Bookkeeper works remotely. The other difference is that a Virtual Bookkeeper is trained to use specific software and processes to manage financial transactions. Traditional bookkeepers tend to work on site and use the company’s current systems.