Running a business is no easy feat, especially if you're an entrepreneur or a small business owner. Between juggling clients, marketing, managing a team, and maintaining a website, having the bandwidth to manage your accounts effectively can seem impossible.
After all, it is a tedious task - keeping track of numbers, receipts, and spreadsheets. But it's also critical to the success of your business. One missed payment or a lost receipt can cost you a fortune.
But the good news is, you don't have to do it alone. A bookkeeping virtual assistant can be your saving grace. They can help you manage business accounts and control your finances without stepping inside your office.
If you need more convincing, here are some challenges of traditional small business bookkeeping.
4 bookkeeping challenges for small businesses
As an entrepreneur or small business owner, you must don multiple hats. While this gives you more control over each business process, it takes away from their efficiency. If you're managing your business accounts yourself, here are a few challenges you might face-
Inefficient cash flow management
According to a U.S. Bank study, a whopping 82% of small businesses fail due to ineffective cash flow management. And if your idea of cash flow management is only tracking your checking account balance, you might be in for a surprise. If you don't have a dedicated business accountant, you'll need to take care of these cash flow activities yourself-
- Determining the break-even point
- Tracking accounts receivables and payables
- Maintaining cash reserve
- Closely monitoring the cash flow
- Auditing inventory
Delay in accounts receivables and payables
As a sole captain manning the ship, there are only so many things you can focus on daily. Unfortunately, this can make tracking your payables and receivables challenging, leading to accounting errors.
You must follow up on unpaid bills, levy late fees, ensure timely vendor payments, etc. Plus, ineffective accounting management also hampers your relationship with vendors and customers.
With heaps of things to look after, the last thing you'd want is to get in trouble with the IRS. Even a slight bookkeeping error can result in inaccurate tax preparation. You must be on top of quarterly estimates, deductions, accurate filings, and more.
If you're not leveraging virtual bookkeeping services, you might struggle with meeting tax demands.
Faulty financial reports
Everyone makes mistakes. But even a minor bookkeeping error can lead to faulty calculations. This will further impact your financial reports and business forecasts, and decisions.
To prevent a financial disaster, you must reconcile your books regularly. This further adds to the already time-consuming bookkeeping process.
This is where virtual bookkeeping services come to the rescue. They help you save time and effort and bring efficiency to the bookkeeping process. Let's understand what is a virtual bookkeeping assistant and how they can help manage your accounts.
What is a virtual bookkeeping assistant?
Picture this: you're at your desk, buried under a mountain of receipts, invoices, and spreadsheets. You're trying to keep track of your finances, but your brain is starting to feel like mush. Suddenly, a virtual bookkeeping assistant appears like a superhero swooping in to save the day!
Okay, they might not actually be wearing a cape, but they are a remote professional who can handle all your bookkeeping needs from afar. They take care of your accounting and finances while you focus on what you do best - running your business!
With their help, you can say goodbye to the endless hours spent hunched over your computer and focus on other essential business tasks. Plus, they'll save you money in the long run by preventing costly mistakes and ensuring that your finances are always in order.
8 ways online accounting services can benefit you
Suppose you've wrapped up a project, and it's time to get paid. But how do you create an invoice? What do you include in it? And how do you ensure that the client pays on time?
With a virtual bookkeeping assistant, you don't have to worry about the nitty-gritty details of invoicing. They take care of everything - creating and sending invoices to your clients, tracking payments, sending reminders, levying late fees, etc.
Keeping track of every financial transaction daily can quickly become overwhelming, especially if you're not a numbers person. A virtual bookkeeping assistant eases this burden.
They can take care of recording all financial transactions, leaving you with more time to focus on running your business. With their expertise and attention to detail, you can rest assured that your books are in order and that you're not missing any important information. Plus, having accurate and up-to-date financial records can help you make informed business decisions and forecasts.
Reconciling bank statements
Reconciling bank statements is tedious but crucial. It involves comparing your bank statements to your financial records to ensure everything matches up, making it time-consuming and stressful.
But when you avail of online bookkeeping services, you have a dedicated virtual assistant to handle reconciliations and prevent discrepancies. They can even help you identify unusual transactions or errors that must be addressed, ensuring accurate financial records each time.
Most of us aren't a fan of tax time. The thought of sorting through financial records and preparing taxes can be overwhelming, to say the least. If you've been there too, you need a virtual bookkeeping assistant.
They can assist you with preparing for the tax season by organizing all financial statements, ensuring everything is in order and up-to-date. They can also help you understand which expenses are deductible so you don't miss out on any potential tax savings. Plus, your virtual assistant can provide all the necessary documentation to support your claims if you're ever audited.
Monitoring cash flow
A virtual bookkeeping assistant can help you manage cash flow seamlessly by creating and maintaining cash flow statements. These statements show you exactly where your money is coming from and where it's going. Equipped with this information, you can make informed decisions about when to invest in your business and when to hold back.
Additionally, your virtual bookkeeping assistant can help you identify areas to cut costs and save money, which can be a lifesaver for any small business.
Generating financial records
Regardless of the size of your business, it is crucial to maintain accurate and up-to-date financial records. This includes records of your income, expenses, assets, and liabilities. Availing of virtual bookkeeping services means you don't need to be an expert in these tasks.
A virtual assistant will generate these financial records for you. They can also help you create budgets, forecast future revenue and expenses, and track your financial performance over time. This way, you can focus on growing your business while also having valuable insights into its financial health.
Providing real-time updates
From income and expenses to pending payments and receipts, a virtual bookkeeping assistant can provide you with real-time updates on your company's finances. This way, you always know where your business stands.
With an expert handling your financial records, you can get a clear picture of your financial status anytime. This lets you make informed decisions about your business, such as when to invest in new equipment or hire additional staff.
Providing cost-effective solutions
Cost savings is on top of every business's operational goals. But as a small business, hiring a full-time bookkeeper can be a significant expense. With an online bookkeeping assistant, you can leverage their expertise while only paying for the hours they work. Plus, you don't have to worry about providing office space or additional benefits.
Additionally, a virtual assistant can help you save money in other ways, like identifying areas where you can reduce expenses, tracking your spending to ensure you stay within budget, and helping you take advantage of tax deductions and credits. They're the perfect solution to manage your finances effectively without breaking the bank.
Why should you partner with Wishup for virtual bookkeeping services?
Access to expert bookkeepers
With Wishup, you can access only the top 1% of bookkeeping VAs, trained in over 70+ tools.
End-to-end bookkeeping services
Our virtual assistants can take care of all your bookkeeping requirements. This includes-
- Expense entry
- Data entry
- Payroll management
- Tax preparations
- Timely payments
- Financial statements
Affordable, location-independent services
We understand that 'affordable' might have different implications for different businesses. This is why we offer a range of bookkeeping VA services so you can find one that best fits your budget. What's more? You can hire our VAs from any corner of the world.
Don't know how to hire a virtual bookkeeping assistant or whether they'll be a good fit for your business? Get a free consultation to determine the best solution for you.
With a virtual bookkeeping assistant, you can access a professional bookkeeper without needing a full-time employee. From reconciling bank statements to providing real-time updates, they can help you with various tasks.
So if you're ready to take your business to the next level and streamline your financial management, email us at [email protected] or schedule a free consultation today.
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