Hiring an accountant is difficult for many startups, small and medium enterprises, and entrepreneurs. It's challenging to find the right talent with relevant skills to compile financial statements for their firm, handle bank account operations, evaluate financial information, and make invoices.
Today, finding a competent and qualified expert at a reasonable price is even more tricky.
We want to discuss the benefits of hiring a bookkeeping assistant and why they are the best choice for startups.
Outsourcing Your Accounting Needs
These days, over a third of smart entrepreneurs and startups outsource their accounting requirements instead of hiring a full-time staff. Surprisingly, most small businesses do not feel comfortable handling their accounting.
Why is this the case?
Firstly, let’s state the obvious, filing taxes can be quite intimidating and daunting. Multiple customers and revenue streams, deductions and other considerations, and multiple form-filling make tax planning difficult. When you're confused about which deductions to place in which revenue stream, use a virtual bookkeeping assistant to relieve you of the stress. They'll keep you up to speed on your payroll and tax filings, covering deductions.
While it is widely assumed that bookkeeping and accounting tasks must be performed within the company, it is essential to consider if you have the relevant skills and expertise. Also, does your team have adequate expertise to handle the increased accounting responsibilities?
Accounting involves meticulous and precise documentation of routine company operations. If investing a significant amount of time in accounting prevents you from meeting your other obligations, hiring a virtual bookkeeping assistant is a great choice. In addition, investing in virtual bookkeeping services will satisfy your clients and help you expand your business.
Startups, entrepreneurs, and small and medium enterprises might wish to manage things themselves at first because they don't have the funds to hire a full-time accountant. When your company is growing and developing, though, having an accountant on board is a good idea. This is where a virtual bookkeeping assistant comes into play.
Benefits Of Outsourcing Accounting Tasks
Cut Hiring Costs
When you break it down into components, recruiting skilled people is an arduous task. You need to allocate many in-house resources to handle it, from developing a recruiting strategy to interviewing candidates. The recruiting process involves time and money, and these are procedures you can't avoid if you want to hire a good candidate for your company.
Many businesses overlook the time spent searching for a skilled accountant. And expenses and time are inextricably linked. Savings from outsourcing corporate procedures must be accounted for because, in the case of outsourcing agencies, they handle the hiring and vetting process, so you are guaranteed to get a trusted and qualified person for the job.
Work With Skilled Professionals
Wishup's virtual bookkeeping assistants are trained experts with years of expertise working with the finances of small businesses. We know all areas of bookkeeping, unlike many business owners who only have a basic understanding of the subject. This ensures that your accounts are constantly in order.
Additionally, we have a rigorous selection process, and we hand-pick and vet the candidates through a careful screening process. As a result, we only select the top 1% of applicants. After we hire the bookkeeping assistants, they go through an intensive four-week training program to prepare them for various aspects of the job.
After hiring a bookkeeping virtual assistant, our VA will fulfill their tasks independently after you tell them how you like things done, if you work in a particular way. Because of their years of expertise and level of skill, they are more than qualified to manage all your accounting tasks on their own, independently.
You do not need to always look over their shoulder and monitor their work every step of the way. You can rest assured you’ll receive the expected results without worrying or micromanaging because they know how to get the job done, and we train them at Wishup to do it well.
As a small business owner and entrepreneur, you will naturally be working with clients all over the globe. Therefore, an accounting emergency may arise at any time of the day or night, and you should be prepared for it. For example, an in-office staff, who works a traditional 9-5, might not be available to solve your queries at odd hours.
However, you can hire a virtual bookkeeping assistant to work according to your client's time zones, so they're always there, available to put out a fire if needed. Additionally, since VAs work by the hour, you can hire multiple VAs for different time shifts without putting a dent in your budget.
Many firms regard outsourcing as an unnecessary cost to their operations. However, in reality, the reverse is true.
Businesses that outsource their bookkeeping needs are looking to save costs while retaining the quality of work. According to the International Organization for Standardization (ISO), Outsourcing may help organizations save 15% on average on their expenditures.
Outsourcing bookkeeping services can result in significant cost savings because most virtual assistant outsourcing organizations can offer their services at reduced rates. This is due to many different reasons, such as the different labor costs and the lack of additional benefits such as insurance, paid leaves, and pension plans. Hiring full-time individuals do not have this many benefits.
Detailed Financial Records
A Wishup virtual bookkeeping assistant manages all aspects of your business's finances, including sales and purchase invoices, bank feeds, and payroll. Our skilled virtual assistants make sure you have a reliable mechanism in place that maintains a record of all income and expenses so you can plan your business' finances efficiently.
In addition, entrepreneurs won't have to worry about misplacing receipts or invoices since your bookkeeping assistant will work with you to create a process that makes it simple and secure.
With this tight system in place, there'll never be a delay in client payments, and all your employees will receive their payments on time as well.
More Free Time
Business owners and entrepreneurs sometimes do all financial duties themselves, which may eat a massive chunk of their time that could be spent on other productive duties, especially if they aren't very experienced in bookkeeping.
Entrepreneurs will gain a good chunk of time back by outsourcing their accounting to a skilled professional, allowing them to focus on more pressing tasks. A virtual bookkeeper will handle all financial matters and give them time to focus on business strategy.
More free time also means that you can maintain a better work-life balance and have more time to spend with your loved ones or on hobbies. This will lead to better mental health, as you’re not getting burnt out, which will, in turn, lead to more productivity in the workplace.
Upscale and Downscale As Needed
Virtual bookkeeping assistant outsourcing agencies can rapidly increase your services without any delays. For example, if the workload of your accounting requirements surpasses what your current team (virtual or in-house) can handle, you may easily onboard more people in less than 24 hours. In addition, you can do that without the lengthy hiring procedure we spoke about in one of our previous points.
Furthermore, virtual bookkeeping assistants bill by the hour. So even then, hiring a bigger team will not put a massive dent in your wallet.
Likewise, you can also decrease your team of virtual bookkeeping assistants when the workload is reduced. But you cannot descale a team of in-house accountants when business is slow because they were hired under a long-term contract.
Cut Infrastructure Expenses
COVID-19 has taught us that most jobs can be done well remotely. You can work from anywhere and still run your business efficiently. Startup owners need to save costs at every corner they can.
Therefore, by building remote teams, they can cut expenses on tech equipment and office infrastructure. For example, our virtual bookkeeping assistants already have computers and any other tech they need for the job.
Your only expense will be hiring, and that too, without additional benefits. All the money you saved by hiring virtual bookkeeping services can be put back into growing your business.
No Long-Term Commitments
The only sure thing about startups and small businesses is that nothing is certain! You never know how the next month is going to be. So getting into a long-term commitment with no idea how business will be in the near future is a significant risk. By hiring a virtual bookkeeping assistant, you eliminate that risk.
There is no set-in-stone contract or long-time commitment you need to take on with our VAs. You can even hire them based on a weekly, monthly, or project basis. If you like working with your VA, you can sign them on for multiple projects in the future. And if not, we at Wishup guarantee a 100% replacement, no questions asked.
Accounting Tasks You Can Outsource
Since bookkeeping is an essential element of accounting, it is one of the top outsourced financial services. Rather than concentrating on a process that requires a lot of labor, business owners should direct their efforts and time elsewhere. That is why bookkeeping is a prime candidate for outsourcing.
Wishup's virtual bookkeeping services are well-suited to manage accounting and bookkeeping tasks of varying quantities, including small company bookkeeping, with ease. In addition, we will ensure that your books and records are maintained in the proper format and that there's no delay in any pending payments.
Virtual bookkeepers can aid you in timely payments of interest on loans, credit cards, and other expenses. They'll also remind you to pay your bills and pay your payroll on time. Banks and credit card firms to whom you owe money do not tolerate any delays. In addition, startups have a limited budget, to begin with, and fines from payment delays will set you back financially. So to ensure that you pay your invoices on time, hire a virtual bookkeeping assistant.
We've spoken about the importance of paying bills. Well, getting paid on time is just as important. For a business that relies on client payments to function, receivables are critical.
Sadly, some clients don't bother to pay on time and must be reminded frequently. You may not always have time to constantly be after them to get your due payments on time.
Your virtual bookkeeping assistants will mail or phone your clients/customers to notify them of their payment obligations. They take this time-consuming and strenuous responsibility off your shoulders so you can concentrate more on business strategy.
If you want to save time identifying and recording revenues from each receipt, you need to prepare general ledgers from each receipt religiously. They document your company expenses, which you may want to examine to reduce your spending. It's a vital process that saves effort and costs because every transaction has already been logged in the general ledger.
As important as they are, these ledgers also take a long time to produce due to the incredible amount of detail required to make them. On the other hand, virtual bookkeeping assistants have a lot of expertise doing this type of work, even when they don't have much time. So to save time and avoid making mistakes while preparing ledgers, the task can be outsourced to our skilled and qualified VAs.
Financial documents such as balance sheets and profit/loss statements are critical for business owners. These are necessary paperwork to keep your company running successfully. A virtual bookkeeper may produce and store these documents for you, making them searchable and accessible.
Annual financial accounts are vital for the tax rebate, and you may use your financial records to crack financing funding.
Preparing Credit Card Statements
It's challenging to reconcile your financial documents and company bank accounts. If you haven't reconciled bank statements before, there's a chance you'll make a mistake. It is, nonetheless, required for effective bookkeeping. A virtual bookkeeper may help you prevent errors and maintain excellent creditworthiness.
Business owners must understand that keeping accurate documents is also necessary from a legal standpoint. Similarly, governments worldwide frequently devise favorable plans for entrepreneurs who keep good financial records. Investors, too, are interested in companies with well-maintained accounting paperwork.
Other tasks that a bookkeeping assistant can aid you with include - mailing essential documents and invoices to customers, following up with customers by phone, entering payables and receivables, and sales tax reporting and submission. You can read about the tasks our virtual assistants are specialized in providing in our blog here.
What Is the Best Way to Hire a Virtual Assistant?
The following are the three top ways to hire a virtual assistant for your startup:
Making a Job Listing
There are several places where you may advertise your virtual bookkeeping assistant job needs. On networks like LinkedIn and Craigslist, you will need to post a complete job description with the skills you require and work hours and compensation.
Pros - You get to choose who you hire, conduct your interviews, and get involved in pay negotiations.
Cons - Finding and interviewing virtual bookkeeping assistants can be time-consuming and difficult. There's also no assurance that the freelancers you find on these sites will stick around.
Apart from LinkedIn, websites such as Fiverr and Upwork are designed explicitly for freelance bookkeepers to put their portfolios and resumes online to get hired.
Pros- A candidate list is already in place. You have to evaluate and shortlist prospective candidates before choosing the best fit for your business.
Cons - You don't get to speak with the virtual bookkeeping assistant until after paying. The organization vets the virtual assistants, but they aren't trained, so you'll have to spend time on training after onboarding them.
Virtual Assistant Outsourcing Agencies
Virtual assistant firms such as Wishup screen, evaluate, and train virtual bookkeeping assistants before allocating them to clients. They recruit virtual assistants in various categories and sectors and can connect you with the suitable VA for the task.
Pros - They handle the screening and hiring, saving you time and ensuring that the task is done correctly. Because most VA outsourcing companies sign an NDA, there is also little chance of your personal information being misused. Additionally, our VAs are well-trained, and will be genuinely invested in the success of your business.
Cons - You don't get to choose your VA because the agency assigns them to you.
However, if you don't like the work done by a particular VA at Wishup, or feel like they don't fit in well with your company, you can get a replacement instantly, no questions asked.
Optimize Your Business For Growth
Accounting is an integral part of any successful business, and you need the right person by your side to help you make sure your books are properly maintained and avoid delays in payments. So hire a virtual assistant today, and rest assured that your finances are in good hands while you focus on scaling your business.
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