When your business needs a bookkeeper, you have two options: you can hire a local bookkeeper or a virtual bookkeeper. In the past, in-house accounting and bookkeeping were the standard for many businesses — especially small ones. CEOs and business owners believed that this was the best way to maintain control over the process. However, recent advancements in technology have made outsourced accounting a more attractive option for companies that want to scale efficiently.
The decision of whether to hire a full-time bookkeeper or use a virtual bookkeeping service is not always clear-cut. There are a few key factors that businesses should consider when making this decision.
Let’s start by defining the two types of bookkeepers. Both approaches have their own advantages and disadvantages, so it’s up to you to decide which is best for your business.
A virtual bookkeeper possesses the same level of skills and education as an in-person bookkeeper. They are fully qualified professionals with the necessary education, knowledge, and training to handle the job. They are experts in their field.
Virtual bookkeepers offer all the same services as in-person bookkeepers. In some cases, you may even find a virtual bookkeeper specializing in services tailored to your specific industry. Such specialized services might not be as readily available among local bookkeeper options.
The main distinction between virtual and in-house bookkeepers is their location and communication methods. Virtual bookkeepers can be based anywhere in the country, or even outside the United States, as long as they are familiar with US tax laws and financial regulations.
Hiring a professional service might be a better option than hiring a staff bookkeeper when your needs become substantial and time-consuming. At this stage, hiring an external provider can often be more cost-effective than hiring additional staff.
Approximately 60% of small businesses still use in-house accountants. However, this number tends to decrease as small businesses grow older. For example, only 43% of small businesses under the same management for five years use in-house accountants. This suggests that many small businesses choose to outsource their accounting needs as they grow over time.
This approach offers several benefits. Firstly, hiring an in-house bookkeeper ensures you have a dedicated employee to handle this critical business need. You will also have someone with expertise who can assist in identifying tax savings and ensuring compliance with regulatory obligations. They can provide support with forecasting, financial planning, and uncovering cost-saving opportunities you may have overlooked.
However, hiring a staff bookkeeper also means increased overhead for your business, which means you need sufficient revenue to justify this cost. If your accounting needs are not overly complex and do not warrant a full-time employee, hiring an in-house bookkeeper may not be necessary. But if your business is sizable enough in terms of revenue and the number of employees, opting for an in-house bookkeeper could be the right decision.
As a small business owner, juggling all the tasks that demand your attention can be overwhelming. Consider hiring a virtual bookkeeper to free up your time and focus on what truly matters. This is a great option for entrepreneurs and small to mid-sized businesses like yours that want an affordable and easy way to keep their books in order.
Staying competitive goes beyond client interactions; it also involves efficient in-house operations. Virtual bookkeeping is a great option for small businesses because it’s affordable, easy, and convenient. You don’t have to hire a full-time bookkeeper, and you can access your financial records from anywhere.
Peach BPO is a virtual bookkeeping firm that specializes in providing bookkeeping services to small businesses. We have a team of experienced bookkeepers who are experts in the accounting industry. We can help you with all of your bookkeeping needs — from data entry to financial statement preparation.
Contact Peach BPO today to learn more about how we can help you with your bookkeeping needs. We’ll work with you to create a customized plan that fits your business and your budget.