Finance

Experts’ Opinions on Virtual Accounting’s Benefits for SMEs

small business accounting services 

small business accounting services 

As a small business accounting services owner, you know business management requires time and continuous dedicated effort. Apart from core business responsibilities, handling accounting books, employee salaries, taxes, etc., would not be a big deal during the initial phase.

But as your business grows with time, you will most likely spend most of your precious time preparing branding, marketing, business development, and revenue growth plans.

Now, what do you think? Would you get time for accounting, payroll, or tax preparation? No.

Companies that experience the same or similar accounting concerns are looking for outsourced accounting or virtual accounting services. Fortunately, there are several reliable firms out there providing quality accounting services for small businesses.

However, without getting deep into what works and what doesn’t, let’s read what experts say about the beneficial side of virtual accounting for SMEs.

Experts’ Views on the Advantages of Virtual Accounting for SMEs

1. Jeroen van Gils, CEO at EcomContent

Consistent Services & Data Accuracy

Virtual accounting firms give consistent services and data in accordance with your accounting requirements. These virtual accountants work with cloud accounting software/applications, which give them instant access to data and allow them to handle it more efficiently.

Compared to manual bookkeeping services, the Cloud Accounting solution is extremely accurate and quick.

As a result, if you require access to your company’s accounting data at any time, a Cloud Accounting firm should be your first pick. Apart from these, there are numerous other advantages to using virtual bookkeeping and accounting services.

One of the most crucial Cloud Accounting advantages is the data accuracy that their services can provide. Furthermore, because these organizations assign individual virtual accounting managers to each client, they may get up-to-date information with 100 percent correct results anytime they need it.

Virtual bookkeepers have also proven to be more effective in assisting firms, generating income, and lowering costs.

2. Gerrid Smith, Chief Marketing Officer at Joy Organics

Save Time & Effort by Reducing Paperwork

I would say It’s no secret that keeping track of payments, analyzing them, and reconciling them takes time out of your day. One of the advantages of hiring a virtual bookkeeper is that you can reclaim your time for a fraction of the expense of lost possibilities.

You may focus on the things that need your attention by outsourcing this boring, time-consuming chore.

You’ll have more time to improve customer service, process evaluation, and overall operations. Most bookkeeping and accounting services for small businesses use online portals, so you won’t have to do any work. You’ll also be free of mounds of physical paperwork.

3. Chris Eddie, Co-Owner & Marketing Director at ClothingRIC

Full-Service Bookkeeping and Accounting

Virtual accounting is capable of much more than just bookkeeping and spending tracking. As you learn more about the advantages of outsourcing bookkeeping, you’ll discover that this is just the tip of the iceberg. Virtual accounting brings a lot more to the table when they’re used to their full capacity.

You can keep track of your company’s financial situation as money comes in and goes out. These insights can help you a lot, whether you’re in a crisis or on the rise. Expenses and income are generally sorted, providing you with a complete picture of your company.

5. John Marsano, Founder & CEO of Inheritance Advanced

Exceptional Technical Support

Being the CEO, I would say accounting is one of the most technologically advanced and inventive sectors. The accounting business has embraced all of the latest technology, from artificial intelligence to blockchain.

The quality of bookkeeping services can be greatly improved with the use of the most recent bookkeeping software.

Small firms, on the other hand, cannot afford to invest in the most up-to-date bookkeeping software or upgrade it on a regular basis. Virtual accounting firms, on the other hand, have sufficient cash to invest in the most up-to-date bookkeeping software and provide intensive training to their employees.

As a result, when you engage a virtual bookkeeper, you will receive the most up-to-date technical help without having to pay more.

5. Tanner Arnold, President & CEO of Revelation Machinery

Spreadsheets Are Not Enough

In principle, you could perform all of your preliminary budgeting and plan on spreadsheets. However, as time goes on, spreadsheets and documentation can rapidly become overwhelming. Spreadsheets can be difficult to manage and lose track of changes, and only one person can maintain their way of them at a time.

More users can alter or input data if you use a shared drive to share that file, but one wrong move can be disastrous. Furthermore, you should never add to the paperwork that your company is already expected to maintain.

The purchase of cloud-based accounting software for small businesses is, in my opinion, well worth the investment in terms of space, money, time, and management.

6. Matt Weidle, Business Development Manager at Buyer’s Guide

Access a Robust, Centralized Cloud-Based Bookkeeping System

In my perspective, modern bookkeeping firms no longer use pen and paper. Instead, they streamline your procedure by leveraging web portals that handle everything, allowing new capabilities to emerge.

The site’s capability varies depending on the bookkeeping price bundles, but the bottom line is straightforward. You and the bookkeeping firm can access your records at any time because it is hosted in the cloud.

They can rapidly input your spending and income thanks to this streamlined cross-collaboration. It also allows SMB to examine their accounts instantaneously, including new transactions, with the touch of a button.

7. Eduardo Perez, Founder of Musician Authority

Make Smarter, More Informed Business Decisions

I believe that your instincts and gut guide the most acceptable business growth decisions, but having the numbers on your side is also beneficial. You can make better, more educated decisions if you have financial intelligence about your company.

Virtual bookkeeping platforms provide you with the data you need to figure out which consumers or clients are worth investing more in.

You could also be able to figure out who you should stop marketing to. Similarly, these reports can assist you with analysis when required (and can afford new employees). Once you’ve done that, you’ll be able to figure out how much you can afford to pay them.

Having all of this information in one place can help keep things in order. While the bookkeepers handle the day-to-day, anyone in your organization can see or update this data.

8. Lauren Cook-McKay, Director of Marketing & Content of Divorce Answers

Roll Out Cash Flow Forecasting across Your Client Base

With the pandemic putting SMEs’ finances under duress like never before, cash flow forecasting has become a must-have service rather than a nice-to-have. Many cloud cash flow forecasting solutions are available on the market that connects directly to cloud accounting software to automate this process and eliminate the need for Excel manipulation.

Accountants will implement an end-to-end real-time approach in 2021 to provide a fully timely, accurate, and visible service.

That is to say, even if cloud capabilities greatly improve accountant data hygiene, the real-time process is only half successful if it ends at payment rather than being completed end-to-end in post-payment reporting.

Faster Payments technology, which reflects transactions as debiting bank accounts within 90 seconds of being paid, can increase the accuracy of cash flow forecasting services. This means that cloud accounting software’s banking data will be completely up to date, with no outstanding transactions.

The key advantage is that the cash situation used to make estimates will be accurate and thorough. In addition, unlike Bacs, this allows for the retention of interest-bearing funds in businesses for a further three days.

9. Amber Morland, CEO & Founder of WinCope

Without an Accountant, Get Detailed Financial Reports

Aside from the ease of data entry, another advantage of outsourcing bookkeeping is the financial data it provides. You can access financial reports that provide you with more particular information about your firm with the push of a mouse. You can look at your cash flow history, profit and loss statements, and a balance sheet.

Because virtual bookkeepers diligently record this data, it is simple to access. This information is simple to share with partners, employees, legal counsel, and financial advisors. Quantitative insights like this become increasingly helpful as your company grows.

10. Ryan Dalal, CEO & Founder of Merge PDF

Use a Powerful Cloud-Based Accounting System

Modern bookkeeping firms don’t use paper. As a result, they streamline your process by using online portals that manage everything. Functionality varies depending on the bookkeeping package, but the bottom line is straightforward. Because it’s cloud-based, you and the bookkeeping firm can access it at any time. They can now input your expenses and/or revenues promptly. With a single click, you can see your finances, including new transactions. Centralizing this data can help organize things. Unlike the bookkeepers, anyone in your company can view or edit this data.

11. Joe Flanagan, Senior Employment Advisor at VelvetJobs

Easy and Secure Data Backup

A virtual accountant will offer their services using cloud-based software. This software will back up the data regularly and keep track of any changes made to the books. When it comes to security, it is secure. Also, as the business owner, you will have control over which parts of your records the virtual accountant has access to.

In this way, the accountant will not be able to view, edit, or manipulate any data from these parts of the records.

Conclusion

Considering these experts’ words of wisdom, we can say that virtual accounting services can be a game-changer for SMEs looking to take advantage of the new-era accounting systems and service models.

Therefore, to leverage the concept of virtual accounting in the new normal, look for a trusted firm that offers good-quality small business accounting services and put your concerns simply how they actually are.

That way, the service provider would be able to understand your situation efficiently and provide you with a solution that’s best suitable for your accounting needs and budget.

 

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