As a small business, a management team may be fully supportive of operating in a nimble fashion and taking advantage of online resources. However, there is still a lot of risk involved with choosing the right service to rely on. For example, choosing a provider to handle bookkeeping means literally turning over the financial keys and record-keeping to a third party. That’s not something a business is interested in doing with just anyone, especially today with problems of identity theft, digital embezzlement and similar.
Taking the big leap into online bookkeeping can be a game-changer for your business. It can save you time, money, and make your financial record-keeping more accurate and efficient. However, it is important to approach this transition correctly to ensure a smooth and successful transition.
Here are some important steps to take when moving into online bookkeeping:
1. Research and choose the right software: There are many online bookkeeping software options available, so take the time to research and find the one that best meets your business needs. Look for software that is user-friendly, has good customer support, and offers the features you require for your bookkeeping.
2. Set up your chart of accounts: Before you start using the software, make sure to set up your chart of accounts. This is a list of categories or accounts that you will use to record your financial transactions. Customizing your chart of accounts to fit your business will make it easier to track and analyze your finances.
3. Import or enter your financial data: Depending on the software you choose, you may be able to import your existing financial data into the system. This can save you time and ensure that your historical financial information is accurate. If importing is not an option, manually enter your financial data into the software.
4. Customize and automate: Take advantage of the customization and automation features offered by the software. Set up recurring transactions, automate invoicing and bill payment processes, and create customized reports that provide the information you need to make informed business decisions.
5. Train yourself and your team: Make sure you and your team members understand how to use the new software. Many online bookkeeping software providers offer training resources like tutorials, videos, and webinars. Take advantage of these resources to ensure that everyone is comfortable and confident using the software.
6. Backup and security: Online bookkeeping relies on cloud-based storage, so it is important to ensure that your data is backed up regularly and securely. Choose a software provider that offers robust security measures and regularly backs up your data. Additionally, consider implementing two-factor authentication for added security.
7. Regularly reconcile and review: To maintain accurate financial records, make it a habit to reconcile your bank accounts, credit cards, and other financial accounts regularly. This involves comparing your recorded transactions with the actual transactions to identify any discrepancies. Review your financial reports regularly to gain insights into your business’s financial health.
8. Seek professional help if needed: If you find that you are struggling with online bookkeeping or have complex financial needs, consider seeking professional help. An accountant or bookkeeper can provide guidance and assistance in managing your online bookkeeping process.
Choosing a Reliable Service in the Digital Fog
One of the best ways to get started with a remote bookkeeping service is to use the help and guidance of a market or business consultant versed in which bookkeeping services provide quality work and which ones to avoid or are not ready for prime time yet. That kind of assistance can save on a lot of headaches, miscommunications and even costs for incomplete services. As a comprehensive back office solution, many such experts don’t just act as a referral service; they provide management of a bookkeeping and accounting system set up from beginning to end. The results produce a financial support architecture that a business can rely on, letting the client company focus on what it does best and putting the accounting workload in the hands of the experts who process it efficiently.
There’s No Shame in Asking for Help
Accounting and bookkeeping are difficult. They require a constant level of monitoring and maintenance as well as the timely handling of large waves of workload that happen repeatedly, especially with payroll. Not everyone is going to be an accounting expert as well as a business startup genius, and not everyone is going to want to spend time on such a learning curve. However, accounting is required for any bona fide company to operate, earn and borrow, and it has to be done correctly. So, asking for help from a source that can provide a connection to reliable expertise makes sense, such as a bookkeeping service endorsed by Kevin Harrington as an example.
Remember, accounting mistakes are a lot harder to clean up after the fact. Instead, by starting right with a competent support system, financial transactions are handled correctly, and problems are prevented before they begin to slow everything down. Prevention is definitely worth its price, three to ten times over the cost of financial damage control after the fact.
Taking the big leap into online bookkeeping requires careful planning and execution. By following these steps and being proactive in managing your financial records, you can streamline your bookkeeping process and gain valuable insights into your business’s financial health.
