What are Online Accounting and Bookkeeping Services?
Online
accounting and bookkeeping services differ from traditional accounting
and bookkeeping services primarily in the manner by which information
is transmitted between the business owner and the CPA. The online
format uses the internet to transfer the information, as opposed to
less efficient means such as mail, courier, or physical delivery of the
documents.
How does it work?
There
are many variations in the degree to which bookkeeping services are
provided. Such differences usually exist depending on the needs of the
business owner. However, the online relationship is usually handled in
the following manner:
- Client scans source documents (i.e. invoices, credit card
statements, deposit slips) using a scanner. The files are saved in a
specified directory on the client's computer (can also be e-mailed).
- CPA accesses the saved files and uses the source documents
to process electronic payments (via online banking) and record
information in the accounting software.
- CPA reviews and adjusts financial statements to be used by
client. The accounting software is housed on an online server to be
accessed at any time by the client or CPA.
Online
bookkeeping requires very little of the client's time. Generally, it
is necessary to review and approve the documents to be scanned and then
authorize the online banking transactions. The result is timely,
accurate financial information that can be used to better manage your
business.
Why outsource this function?
Accurate
bookkeeping procedures are an absolute necessity for business owners.
The resulting reports can be used to comply with federal tax laws,
obtain financing, and most importantly, track the financial condition
of your company. Many companies hire a part or full time bookkeeper to
handle this function because the volume of transactions justifies such
action. However, small businesses often do not have the resources to
hire and watch over an employee whose activities do not directly
translate into company profit. Outsourcing is usually the answer in
this case.
Can I do this myself?
Modern
technology has made it much easier to handle the bookkeeping activities
yourself. Software programs such as Quickbooks are relatively
inexpensive and user friendly. However, tax and accounting rules are
becoming increasingly complex. It is important to understand the
results of your bookkeeping activities and know how different
transactions should be reported and interpreted. The monthly cost
of bookkeeping can be reduced to the point of being affordable to small
businesses. In addition, accurate monthly bookkeeping can mitigate tax
preparation fees since transactions are monitored and correctly
reported throughout the year. Basically, fees paid for online
accounting services is money well spent.
Fees
Fees
for this service vary and are usually based on the number of
transactions processed per month and specific services provided. In
some cases, we can provide basic bookkeeping services for as low as
$105 per month. There is an initial setup fee to cover time and
supplies to get everything up and running. There is also a monthly
online access fee for users who wish to view their information at all
times. Long term, the cost associated with this service will be
outweighed significantly by the efficiencies created. Consider the
savings compared to the wages, payroll taxes, and time spent managing
an additional employee. Also consider having to spend just a few
minutes scanning documents and authorizing transactions and having your
financial information readily available at all times and accessible
from any location.
Getting Started
If
you are interested in this service and would like to further discuss
the details, contact me either by email, telephone, or simply filling
out the form below. I can answer any questions you may have and give
you a more accurate quote on the cost of these services. Also review
the other sections of my website to see if there are additional
services that would assist you in running your business.
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Online Accounting and Bookeeping