Remote Bookkeeping Services

Today’s digital world opened many doors for different business functions to be done remotely. However, bookkeeping services were one of the original functions to be done remotely. Robust cloud-based accounting software and online banking have only strengthened this movement.

What Are Remote Bookkeeping Services?

Remote bookkeeping services entail offloading your bookkeeping tasks to outsourced professionals who work remotely. Full-service outsourced accounting services can even offer tax and payroll assistance. These services are an alternative to founder bookkeeping or in-house bookkeeping. Remote bookkeeping services are provided by remote bookkeeping companies, which employ skilled professionals to manage your financial records, transactions, and financial reports from a remote location. So long as your company doesn’t rely on cutting checks on the spot or manual journal entries, remote bookkeeping is fully functional. 

Benefits of Online Bookkeeping:

1. Cost Savings: Companies that hire remote bookkeepers save can often save on costs associated with hiring, training, and retaining in-house staff. Remote bookkeeping companies typically offer flexible pricing options tailored to the needs of your business, helping you avoid unnecessary expenses.
2. Scalability: Virtual bookkeeping services are particularly well-suited to small, growing businesses. As your business grows, you can increase your services to match the needs of your business. Your bookkeeping work can easily grow from 5 hours a month to 10 hours a week. Remote bookkeeping services are fit to handle that change. 
3. Stability: Hiring an outsourced firm to execute bookkeeping is more stable than a single employee. Outsourced companies are not as susceptible to gaps caused by turnover, paid leave, or sickness compared to a single person. Even if your dedicated bookkeeper took a vacation, the company would have someone to take on their responsibilities in the meantime. 
4. Expertise and Accuracy: Remote bookkeeping companies employ skilled professionals who specialize in managing financial records. Their expertise can help ensure accuracy in your bookkeeping, reducing the risk of errors and financial discrepancies. Additionally, remote bookkeeping companies work with a variety of companies, making them apt to troubleshoot by leveraging their experience. This can even include tax preparation services.
5. Access to Advanced Technology: Many remote bookkeeping firms use the latest software to manage accounts and finances. Partnering with such firms can give businesses access to these advanced tools without incurring the expense of purchasing and maintaining them.
6. Real-time Access and Cloud Integration: Online bookkeeping often implies that the records are maintained and accessed in real time from anywhere. Cloud-based systems provide business owners the ability to view their financial data on the go.
7. Enhanced Security: Reputable online bookkeeping services invest in top-tier security measures to ensure the confidentiality and safety of your financial data. It can include encryption, two-factor authentication, and regular backups.
8. Compliance and Up-to-date Regulations: Bookkeepers and accounting professionals stay updated with the latest financial regulations and tax laws. Security measures can ensure that your business remains compliant and can benefit from new tax incentives or changes.
9. Time Savings: By outsourcing bookkeeping tasks, business owners can free up valuable time, allowing them to focus on core business operations and strategy.
10. Customized Reporting: Online bookkeeping services often offer customized, tailored financial reports, providing insights that can guide decision-making.
11. Consistency: Even if a company changes its structure or operations, an outsourced bookkeeping service ensures consistent record-keeping and financial tracking.
12. Cost Predictability: With set monthly or annual fees, businesses can better forecast their expenses associated with bookkeeping.

Is Online Bookkeeping Worth It?

Absolutely! Time is often the biggest enemy of entrepreneurs. Online bookkeeping services for small businesses offer numerous advantages over traditional methods, the biggest of which is time-saving. By leveraging technology, remote bookkeepers can streamline processes, improve efficiency, and provide timely insights into your company’s financial statements and overall health. Outsourcing bookkeeping tasks allows you to focus on core business activities while leaving the financial management in capable hands. All types of companies employ bookkeepers, so the question is a matter of need and timing. 

Is QuickBooks Bookkeeper Worth It? 

QuickBooks is a popular accounting software and our preferred software choice for small business owners. QuickBooks bookkeeper services can be worth it if you are already using the software and want a professional to handle your bookkeeping tasks within the same system. QuickBooks bookkeepers are well-versed in the software’s features and can optimize its functionality to suit your business needs. However, Quickbooks bookkeeping services could be better-suited to leverage other accounting technology, scale with your business, or be consultants.  

Is a Bookkeeper Cheaper Than an Accountant?

Compared to other accounting roles, bookkeepers are usually the most cost-effective because they are the lowest level of accountants. Bookkeepers focus on daily financial transactions, maintaining records, and generating reports. Higher-level accountants, such as a controller, provide financial analysis, tax advice and tax filing, process and tool oversight, and strategic advice. CFOs are the highest level in the financial function. They help develop personnel and take on big projects such as fundraising, major hiring decisions, financial models, and reporting to the board. 

How Much Does a Bookkeeper Cost for a Small Business? 

The cost of a bookkeeper for a small business varies based on factors such as the complexity of your finances, the volume of transactions, and the level of expertise required. Typically, bookkeeping services for small businesses are priced on an hourly, monthly, or project basis. Hourly rates can range from $20 to $75, while monthly rates can start from $250 to $750. In comparison, according to Indeed, a full-time bookkeeper makes an average of $43,339 a year. This does not include the cost to hire, train, and retain a full-time employee. Full-time employees typically come with equipment costs as well, such as a computer. When comparing the price of a bookkeeper, full-time or outsourced, it’s important to consider the holistic cost of in-house personnel, not just salary. 

How to Find the Best Virtual Bookkeeping Service for Your Business

Assess Your Needs; Both Current and Future 

First, determine the current bookkeeping needs of your company, such as invoicing, bank reconciliation, or payroll management. Many companies only consider their current needs. However, growing small businesses, such as controllers or CFOs, typically require higher-level accounting. Your second step as you look for the best service should be to consider if the company can offer these strategic finance services as well. 

Research Remote Bookkeeping Companies 

Look for reputable remote bookkeeping companies that specialize in serving businesses of your size and industry. While bookkeeping basics are the same, SaaS vs. non-profit vs. manufacturing requires many different data entry and skill sets. Read reviews, check their credentials, and evaluate their experience.

Evaluate Pricing Models

Compare the pricing structures offered by different virtual accounting services to ensure they align with your budget and requirements. Some Virtual bookkeeping services’ prices may charge based on transaction volume, while others may offer fixed monthly fees. Many companies and freelancers will also offer hourly rates, which can be well-suited for newer businesses. 

Consider Security Measures 

Bookkeepers have access to sensitive information and logins. Ensure the virtual bookkeeping service follows strict security protocols to protect your financial data. Ask the companies you’re evaluating how they ensure your information is secure and protected. 

How Do I Choose a Bookkeeping Service?

Choosing a bookkeeping service can be difficult after narrowing initial lists. Prices can be difficult to compare as each company offers a unique set of services. Here are 5 considerations before making your decision. 

1. References: You should first check references to help understand exactly what the bookkeeping service can provide and how they follow through on their promises. References are particularly useful to understand the cadence of work and how they help similar businesses, whether industry, size, or revenue model. 
2. Scalability: It’s important to take into account the scalability of the service. Can I get controllership or CFO-level services down the line? Do they have the ability to forecast? If my transaction count grows, will they be able to handle it? If not, choosing a different service might better fit your growing business. 
3. Fit: Choose the company you feel best suits your culture and work style. Consider this as you would a full-time hire. Ultimately, this is a business partnership that is foundational to your business. Extra scrutiny will be rewarded instead of punished. 
4. Style: Similar to fit, consider how you want to interact with your bookkeeper. Some companies use a revolving door with their bookkeepers; other companies leverage foreign bookkeepers, while others have one dedicated person. It’s important to know your preference and ask how their company operates.  
5. Reviews: Reviews are typically home to the angriest and happiest customers. They can be a great place to source questions to ask your salesperson. Moreover, they’ll give you a pulse check on how well the company delivers on its promises. 

How Do You Do Bookkeeping Remotely?

Remote bookkeeping capabilities are as robust, if not better, than in-person bookkeeping. Cloud-based accounting software combined with online bank and credit card access allows bookkeepers to have access to all information necessary to log transactions and perform reconciliations. Additionally, different tools allow for bill pay, expense management, and receipt capture to happen remotely. 

How Much Does It Cost to Have Accounting and Bookkeeping Service?

Bookkeeping is the most basic level of accounting that typically costs between $20-$75 an hour or $250-$750 monthly. Controllership, also known more informally as accounting, usually runs $100-$175 an hour. The combination of controllership and bookkeeping costs between $1000-$2500 a month, depending on the complexity of your financials, transaction volume, and other factors. 

How Milestone Can Help with Online Bookkeeping Services

Milestone is a remote accounting service that offers bookkeeping, controllership, and CFO services. We are experts at small business accounting. We want to transform your back office into a competitive advantage. We do this by using our accounting expertise to give you meaningful financials that lead to informed business decisions. Our dedication to excellence, the entrepreneurial journey, and best-in-class technology allows us to stand tall above the rest. Reach out to us today to bolster your back office.