Every small business gets to a point where they can no longer handle the accounting themselves, and they need a cost-effective solution to help them grow to the next stage. Before companies hire in-house accountants, they often outsource these services. It's becoming more and more common for small businesses to use a virtual accounting service online.
There are 2 basic services that will be available to you:
- Monthly reporting system : basic number crunching done once a month.
- Weekly reporting system : hands-on accounting that can be provided on a daily basis with weekly reports provided.
This infographic is a quick overview of what you'll get with each option.
Monthly Virtual Accounting Services
Usually what happens with this option is you will send all of your financial information (receipts, invoices, etc) to your online accountant once a month, and he/she will do a basic number cruch for you. It's pretty straight forward. There's usually no strategizing or in-depth assistance provided with this option.
This might be a good option for companies who really do just need basic number crunching, but don't have the time to do it themselves. It will save them money to go with monthly reports, rather than paying for more in-depth help with the weekly option.
Weekly Virtual Accounting Services
This option usually allows your online accountant a more active role in your company. This option is great for companies that need to know what is happening daily/weekly with their finances, and can't afford to make estimates about the financial health of their cash flow. With the weekly option, your accountant will participate more like a team member, and will help you process transactions as they happen.