There comes a point in a business when hiring a remote bookkeeper becomes necessary. While managing the books may seem manageable in the beginning stages of the business, it becomes a hurdle as it grows. Especially if it starts to take a toll on your business.
This blog post answers all your questions (and concerns that you may have) about hiring a bookkeeper. It also aims to help you ensure that your finances are not just accurate but also handled efficiently. Let’s dive in.
Table of Contents
What is Bookkeeping?
Bookkeeping refers to the process of recording a company’s financial transactions regularly, monthly, and yearly. It organizes the company’s accounts into reports and graphs that business owners can later evaluate to make informed financial decisions. Keeping your financial records updated and accurate can help you measure your company’s financial performance and take the necessary steps to improve it. Detailed financial reports can also be helpful when your firm is being audited.
Why is Bookkeeping Important?
Detailed and accurate bookkeeping is one of the foundations of a successful company. It is pivotal for an accounting department as it can help them suggest positive initiatives that business owners can take to drive their venture forward. Without detailed books, it can be challenging for you to evaluate your business needs and mitigate financial risks. These butterfly effects can lead to serious consequences for your business in the long run. Thus, it is recommended that business owners implement remote bookkeeping and automate their accounting processes to avoid errors, stay updated with their financial records and save costs on hiring and training resources who can be better utilized in other areas of the company.
Why Remote Bookkeeping?
Amid the increasing pace of business processes, companies are hastily adapting to remote solutions. This involves remote bookkeeping also. Implementing remote solutions can help you enhance resource efficiency and reduce operating costs. Moreover, with the use of advanced tools, remote bookkeeping can offer you accurate books that are 24/7 accessible for you and your team to make important decisions and measure performance. These benefits have made remote bookkeeping an attractive solution among startups and SMEs. However, before opting for remote bookkeeping, you should evaluate your business needs, consider consulting a financial expert, know its drawbacks, and how you can hire the best bookkeeping service for your company. This blog has been written to help you make an informed decision when hiring a remote bookkeeping service.
What is a Remote Bookkeeper?
A remote bookkeeper is a professional who manages your business’s financial records from a location outside your office, often from their home or a remote office. They perform all the traditional bookkeeping tasks such as recording transactions, managing accounts payable and receivable, preparing financial reports, and ensuring compliance with tax regulations, but they do so using cloud-based accounting software and communication tools.
Remote bookkeeping services refers to a team of skilled individuals who manage your company’s financial resources from a location outside your office, often from their home or a remote workplace. They perform all the repetitive bookkeeping tasks such as recording transactions, managing accounts payable and receivable, ensuring compliance with tax regulations and preparing financial reports. They also use accounting automation software that can help prepare accurate and detailed financial reports in a shorter period of time. Your financial data is then stored on a cloud-based platform that you can access 24/7, keeping you updated with real-time financial information of your business.
5 Best Tips for Hiring a Remote Bookkeeper
1- Data security
Financial data is highly sensitive and critical. Thus, it is imperative that you research the people who will be managing it. Make sure that the bookkeeping service provider follows strict security protocols for their customer’s financial data.
2- Software Literate
Verify that the bookkeeper is proficient in the accounting software you use or is capable of recommending and implementing suitable cloud-based solutions.
3- Verify Certifications and Experience
Before hiring a remote bookkeeping service, it is important that you verify the necessary qualifications, certifications and experience that is required to manage a company’s finances. Be on the lookout for any forged certifications, you do not want to hand over your financial data to someone who may have cheated their way into the industry.
4- Communication Skills
Communication gaps can be a big factor when working with offshore employees. When hiring a bookkeeping services provider, make sure they are proactive and responsive. This will ensure that human bookkeeping assistance is at hand when required.
5- Customer Reviews
A company’s customers can tell you the most about its services. Consider asking for reviews from the already existing customers of the remote bookkeeping service you plan to hire. You can also read their client testimonials and reviews on other platforms.
Five Benefits of Hiring a Remote Bookkeeper
Access to Skilled Bookkeeping Experts
With hiring remote bookkeeping services, you can gain access to a pool of global talent that are highly experienced and skilled in their respective fields. These resources also help you stay updated with industry trends, as they are always on top of them. Moreover, they are well-equipped with using the latest accounting software and technology that can make the bookkeeping easier, faster, accurate and comprehensive. This can be of highly value for SMEs that may not have the resources to hire full-time experienced bookkeepers.
Saves Cost
Who does not want to save costs in 2024, where inflation is surging and it is getting challenging for start-ups to keep up with hiring and training costs. This is where remote bookkeeping saves the day for SMEs. By outsourcing your bookkeeping, you can save on utilities costs, hiring and training costs, and benefits associated with in-house employees. Moreover, remote bookkeeping services can also be hired on a contractual basis, i.e., once the work is done, the contract ends and you do not have to pay anymore. This allows for flexible payment structures that SMEs can use to their advantage and gain financial foothold in the industry.
Frees Up Valuable Resources
By freeing up your existing resources from repetitive and manual tasks such as bookkeeping, you can reinvest their time and ideas in core areas of your small business. This can help you and your team drive your venture forward and compete positively. Moreover, this will also help make your valuable resources feel valued as they will be involved in the strategic areas of your business. Thus, your existing resources will go the extra mile to contribute to business growth and customer satisfaction.
Scalable and Flexible Contracts
Remote bookkeeping can be highly adaptive of your business needs i.e., you can make changes in the contract as per your business needs. This means that you can scale up or scale down their responsibilities and compensation as per your company’s situation without having to lose valuable resources. This can be helpful for SMEs who may be struggling to retain full-time employees.
Enhanced Security
Most remote bookkeeping services have a cloud-based accounting platform on which your transactions are securely recorded. These cloud-based platforms rely on secured end-to-end encryptions. This ensures that your critical financial data is stored in a highly secured platform that is accessible 24/7. Moreover, storing financial data on a cloud-based accounting platform highly reduces chances of losing any data.
Conclusion
The rise of remote bookkeeping offers businesses a flexible, cost-effective, and efficient solution for managing financial records. By leveraging the expertise of remote bookkeepers, businesses can streamline their accounting processes, enhance productivity, and focus on core activities that drive growth. However, it’s essential to address potential challenges through clear communication, due diligence, and robust technological support. If you’re considering hiring a remote bookkeeper, take the time to find the right fit for your business to reap the full benefits of this modern approach to bookkeeping.
Outsource your Bookkeeping with EA’s highly skilled, reliable and experienced bookkeepers.
Expertise Accelerated’s team of highly skilled bookkeepers can provide you with cost-effective solutions for your business. By freeing you and your valuable resources from repetitive and manual bookkeeping tasks, EA provides you with the freedom to drive your venture forward and achieve business objectives. Schedule a consultation today to gain financial freedom.
