What is the purpose of bookkeeping, and how can good bookkeeping improve your business?
When it comes to running a company, you need everything in place and to run properly in order for your business to continually function, especially anything related to your financials. Making sure that you’re gaining more money than you’re spending is vital, and keeping track of all income and expenses is equally as important.
That’s why bookkeeping is so necessary for a company, and having good, cost-effective bookkeeping is even more necessary if you want your business to continue to run smoothly. If you wondering what is the purpose of bookkeeping and why is it essential for a company, the simple answer is that bookkeeping is the key to all of your financial dealings.
Without good bookkeeping, keeping track of all the money flowing in and out of your company is not possible, and your business cannot hope to keep track of any and all outstanding payments or bills due. The challenge with bookkeeping is how to get the right bookkeeping setup for your company, and many business owners will attempt to do their own to save money for their business.
Unfortunately, doing your own bookkeeping and running a business at the same time is extremely challenging, as bookkeeping is full-time job and, if you don’t get your bookkeeping done right, your business will fall under. Businesses who try to do their own bookkeeping do so because they can’t afford an in-house bookkeeper, and they aren’t aware of a better option in bookkeeping: outsourced bookkeeping.
Remote bookkeeping is inexpensive, quick, efficient, and runs well, and can give your business the benefit of a good bookkeeping service that is also affordable, and can allow your business to grow.
What is the Purpose of Bookkeeping?
Bookkeeping is in place to ensure that your business keeps track of your financials properly, and having outsourced bookkeeping does just that.
The process of outsourcing your bookkeeping is simple: you decide what services you want in addition to the bookkeeping to decide your quote, the remote bookkeeping business places a file on your computer to give you access to the data, and, from there, the outsourced bookkeeping business does the rest, completing your books and placing the data on the server for you to access.
The services offered by the remote bookkeeping company are designed to make your life easier and assist you in running the financial side of your business, from paying your bills for you to helping you prepare for taxes to checking your reconciliations. The staff of a remote bookkeeping business even acts as a help desk, assisting you with any problems you might have.
You can also vary how you access your data, gaining access from other computers, a laptop, a Mac, a smart-phone or tablet, and you can even give employees access pending a password. Remote bookkeeping also uses a unique form of online storage called cloud; cloud has become reputable in the last decade as a secure way to store data that is also easily accessible.
How Secure is Bookkeeping Online?
The magic of outsourced bookkeeping is that it runs off of a secure, high-speed server, giving your business the convenience of easy access to your information as well as the speed of a full team of employees working on getting your bookkeeping done.
The server used is completely secure, and there are extra precautions in place to further ensure the security of your data; for example, there is a cyber insurance policy taken out on your data. There are also backups of your information created and placed in different data centers offsite, so a complete loss of your data is virtually impossible.
Remote bookkeeping companies are required to follow a set of cyber security laws mandated by the respective state, further ensure that all of your information is as secure as possible.
Remote bookkeeping is also both secure and efficient thanks to the well-running team of employees hired by the company. Employees go through a series of security clearance measures that include being vetted, going through a background check, and being interviewed.
As a final precaution, employees sign a three-page non-disclosure policy so employees are held completely liable for the security of your information, and they all go through a period of training to bring them up to speed on how to get your bookkeeping done as fast and as efficient as possible. Employees are trained to work together for tasks for clients rather than working individually, making the entire process much faster for you.
How Much Does Bookkeeping Cost Comparatively?
For most business owners, the main worry is how much will the bookkeeping service cost and whether or not the service is worth it as far as efficiency and what is offered. When comparing outsourced bookkeeping to in-house bookkeeping, it’s clear that remote bookkeeping is far more cost-efficient, offering you much more as far as services at a shockingly low cost.
As far as in-house bookkeeping, you don’t get any of the extra services that remote bookkeeping offers- no secure server, no help desk, and no getting your bills paid for you, and it will cost a total of $43,000 annually full-time and around $35,000 part-time.
On the other hand, with outsourced bookkeeping, you can add on numerous services, like having custom conduits built in your software, or getting financial reports every week or month, and it will cost a maximum of under $20,000 annually, less than half of what a full-time in-house bookkeeper cost, and you’ll get so much more in terms of service!
Plus, if you want to handle more of your financials and decline services to save money, you’ll pay a low quote of $300 per month, or $3,600 annually, more than ten times the amount of money saved by outsourcing your bookkeeping.
What is the Purpose of Bookkeeping, and What Kind of Bookkeeping Should You Get?
An important part of your business’s financials is by keeping track of all money flowing in and out of your business efficiently, and this is done with good bookkeeping.
Unfortunately, getting bookkeeping for your business that provides your business with the luxury of having your books done at the fastest rate and lowest cost is extremely challenging. In-house bookkeeping is not cost effective for your business, especially if you run a smaller business, and doing your own bookkeeping is not viable if you want your company to expand.
That’s why getting outsourced bookkeeping is such a good idea for your company; remote bookkeeping can offer you cost-efficient bookkeeping outsourced, along with other additional services that can be used to further benefit your business, and businesses like Remote Quality Bookkeeping are the best at what they do.
For more information about how RQB can help improve your business, contact us.