Managing your own business comes with many benefits. You are free to do what you think is right for the business. It also comes with responsibilities that you need to shoulder. Managing finances for a small business owner is somehow intimidating and complex. Online automated bookkeeping services can shoulder the bulk money management service from you. You will now focus on the other business parts that you love.
Online bookkeeping surfaces in three categories:
- Outsourced services
- Online software services
- Virtual service provider services
You can hire a part-time or contract employee to offer bookkeeping services remotely. The employee can handle bookkeeping, accounting, tax filing, or all three services. The service provider you choose will range with the bookkeeping services needed. Here are the benefits you may need:
- Tax planning and filing
- Expense and income tracking
- Account receivable management and client invoicing
- Accounts payable and bill pay management
- Payroll management
- Tax election and company formation
A virtual bookkeeper is a customizable option. You can get someone to work for the business and complete all the needed tasks. It’s the most expensive bookkeeping method. To keep that employee in your team, you need to pay for the employee wages. You will also pay the contract fee and all the applicable taxes.
Online accounting software
If your business finances are simple, you will need an online program for accounting. It will help you with the bookkeeping tasks. The online program will range depending on the business size and the services required. Here are the services provided by online accounting software:
- Online payments
- Expense tracking
- Time tracking
- Financial reports
- Proposals and estimates
- Inventory management
The software needs monthly or yearly subscriptions. Others have levels that offer different services. You can sign for any software and any level depending on the business needs. Online software is the cheapest bookkeeping service for your business. It doesn’t guarantee the best fit. For many companies, online accounting software offers more complex services than the business needs. The subscription price and learning curve may not be worth it. The software may not provide the services you need. For example, helping you with issuing and forming tax forms. You will have to pay more to get these services covered.
Outsourced bookkeeping services
Outsourced bookkeeping services combine the comprehensive service of getting your bookkeeper and the cheap automated software. Outsourcing your back-office tasks will help you get the following services:
- Tax election and legal formation
- Owner salary estimates
- Quarterly tax returns and estimates
- Individual and business income tax returns
- Filing and issuing tax forms
For the outsourced bookkeeping services, you pay for the monthly subscriptions. You receive ongoing beekeeping support from these service providers. You will also get periodic and upfront consultations with tax or legal experts.
The above are the main bookkeeping types you will meet in the business world. Choose the best for your business and follow the state regulations to see your business grow.