If you're running a small business, it can be tempting to do some or all bookkeeping processes yourself, either by hand or on your own computer with local backups. However, this would be a mistake, since there are a considerable number of advantages to going virtual.
Here are just a few examples of these advantages.
1. Security: Protecting your books
If all of your books are in paper form, in a cabinet in your house or in your shop or place of business, then you have a single point of failure for them. This means that they are vulnerable to:
- Physical Security Breaches - Someone could just walk right into where you keep your books and steal them all for their own purposes by crowbarring open your file cabinets or physically accessing them on your computer should you happen to leave it open, or if the password is easy to guess, or if the password is on a sticky note right next to your computer.
- Natural Disasters - If there's a hurricane, a flood, or some other kind of disaster in your area, then all of the records could be wiped out in one go. This would even include your backup if it's on a local server. The local server would help if you accidentally deleted records, but not if some problem destroys the whole area. Having damage to the building would be bad enough, but ruining your whole business along with it would make it even worse.
- Other Local Problems - You could always accidentally delete some or all of your records if they are in one location. You could also end up misplacing them on your computer or in the building somewhere.
However, if you instead put accounting or bookkeeping information on a virtual server, these problems all go away. Since it's on the cloud, it can't be destroyed at a physical location. The virtual server will also automatically log you out most of the time if you forget, so someone getting access to the physical computer wouldn't help them. Plus, there's going to be strong encryption on the site to prevent hacking attacks.
Virtualizing your books will also be easier since you won't ever run out of space. Physical cabinets can get overfilled fairly easily. This is a problem that could happen just by your business having longevity or if you start doing particularly well and have a lot to add to the ledger. A personal computer may not run out of space, but it can at least be an issue if you have a computer that's old enough or has hard drive problems.
3. Increase Time Efficiency
As a small business owner, one of the most precious resources you have is time. There are a thousand things to do every day, and you very likely have a lot of better things to do than entering numbers into a book. By outsourcing your accounting to a service, you eliminate the need to either do it yourself or hire others directly to your company to do it, since then you have to deal with even more paperwork keeping track of them.
It's usually a lot more efficient to just entrust it to a virtual service instead. This way, all of your time and headspace can be focused on the things that actually make you money, instead of keeping track of what makes you money, which is a pointless extra step.
You'll also be surprised how much it will lower your stress level to not have to worry about all of that personally. This will only serve to make you feel better and put more into making your business successful.
4. Cost Efficiency
By having everything handled virtually, you'll save money on all sorts of aspects of your business. Having a virtual assistant means that you don't need to worry about any extra office space, any extra supplies, or anything else related to having a physical employee in a physical space. This includes providing insurance for them, their salary of course, and anything else that goes with that like a cubicle, for instance.
This also includes other logistical concerns like providing enough heat, water and anything else that would otherwise be needed, like making sure the business is open for them if they have to work late, for example.
Instead, all you have to do is give the virtual service access to your accounts remotely, and they can usually handle everything remotely from there. This means there's nothing else to figure out or worry about. Plus, the bookkeeping ends up being highly similar to what such personnel would do anyway even if they were physically present. The truth is that physical presence is almost never required when it comes to this type of work. All that's required is access to raw data so that the bookkeeper can organize it all for you in a neat package.
5. Peace of Mind
Another advantage is that you'll have the peace of mind knowing that a professional is taking care of everything, and you'll know from them immediately if something is wrong. After all, it's unlikely that your specific business has to do with accounting, so you'd probably rather focus on what you're good at, and not everyone is cut out to be an accountant. That's why virtual bookkeeping services exist in the first place. Your attention can go elsewhere and you can instead just look at the final organized picture of your finances and go from there when you're making your plan. It's hard to put a price on peace of mind, considering how much reducing stress helps your focus and intelligence as well as your overall health.
For more information about Bookkeeping, it's advantages, and how you can get started making the switchover today, please don't hesitate to go ahead and contact us now. The quicker you contact us, the quicker we can get started with helping you transition in order to make your bookkeeping, easier, more secure, more efficient, and better in just about every way.