Bookkeeping is critical for every business. Any company that doesn’t keep accurate financial records is headed for bad times. The good news is that you can hire an online bookkeeping service to keep financial records while focusing on growing the business. This article will explain the essential factors to consider when choosing an online bookkeeping service. For more information on accountants in Melbourne head over to Liston Newton Advisory.
What Is An Online Bookkeeping Service?
It refers to any service provider that manages daily financial tasks like record-keeping, processing payroll, and reconciling bank statements. You can get a dedicated bookkeeper for your business on the Internet. They’ll work remotely and ensure your business keeps accurate records. Communication primarily happens online, and it’ll be like having your own designated bookkeeper.
Types of Online Bookkeeping Services
Virtual
“Virtual” refers to someone working online. In this case, you’ll hire a professional accountant to keep financial records for your company. You can hire an accounting firm that offers complementary services, such as
- Tax filing and planning
- Payroll processing
- Preparing annual financial statements
- Expense tracking and management
- Company incorporation
You can find virtual bookkeepers via recommendations from fellow business owners or through freelancing platforms.
Software
If your company’s finances are very simple, you may not need to hire a dedicated accountant. Instead, you can use software to record the transactions and generate reports when required.
Popular accounting software includes the Xero, QuickBooks, FreshBooks, Zoho Books, etc. You can link your software directly to your corporate bank account, and it’ll automatically record and classify every transaction.
Accounting software requires monthly or annual subscriptions.
How To Choose A Suitable Bookkeeping Service
The essential factors to consider to choose online accounting services include
1. Cost
Pricing is the first thing to consider when choosing an accounting service. It’s essential to choose something you can afford in the long term. Different bookkeeping services have different pricing structures. Some demand an hourly fee, some require a retainer each month they work for you, and others charge flat rates based on your requirements.
Choosing a service charging a flat rate or a monthly retainer is advisable. Estimating how much you’ll pay if you choose the hourly rate is difficult. Besides, some accountants can stretch their hours exceedingly to collect more money from clients.
2. Qualifications
Bookkeeping is a skill, and you must be sure the person you’re hiring is qualified for the job. No specific degree makes one a bookkeeper, but an accounting degree from an accredited college is preferred. If the person doesn’t have an accounting degree, they should at least have certifications in accounting courses.
Degrees and certifications aren’t the perfect yardstick, but they prove that the person has the basic knowledge required for bookkeeping.
3. Tech-Savviness
Bookkeepers must be familiar with general technology. They must know how to use computers generally and accounting platforms like QuickBooks, Xero, Sage, etc. Very few people keep financial records on paper these days, so any bookkeeper unfamiliar with technology is a time drain.
4. Communication Skills
Bookkeepers should be able to communicate clearly with their clients. Anyone you hire should be able to answer your questions clearly and alert you to any mistakes. Successful record-keeping is a two-way event. The bookkeeper should be responsive to your inquiries, and you should be responsive to theirs. Otherwise, costly mistakes may occur.
Conclusion
We have explained online bookkeeping, its types, and the main considerations for selecting a suitable accounting service. Follow our tips, and you’ll likely not have any problems choosing a good bookkeeping service to work with.
