As a small business owner, you have to make several business-related decisions. These include new deals, customer-management, growth opportunities, and work efficiency. But one goal that goes along with every decision is to keep the organisation’s spendings as low as possible. You know what they say: “A Penny Saved Is A Penny Earned!”
But a penny has to be saved so that it does not compromise the work quality. For a small or mid-sized company, such ways include hiring outside help for jobs that fall outside their prime functions. Since opening a new department and hiring new employees for such jobs means going over budget, small companies find the former much more straightforward, time-saving, and cost-effective.
And for most small companies, accounting is one such area that goes out of hand on several occasions. But as mentioned above, hiring an employee for annual accounting and bookkeeping is too much.
So, these companies hire virtual or online accounting and bookkeeping services and outsource their work to save both money and time.
But what is the difference between virtual accounting and online accounting? Aren’t they two terminologies for the same work? Let’s find out:
Virtual Bookkeeping and Accounting Services V.S. Online services
When people talk about bookkeeping and accounting, they tend to use “virtual” and “online” synonymously. While the concept might seem similar to the inexperienced eyes, with related services, there are some relevant differences between the two:
Virtual Bookkeeping and Accounting Services
Most people use virtual bookkeeping and accounting as a generic term for such services found online. Virtual service has two meaning:
These freelancers often do not have the required technologies, lack new knowledge, or any associates to manage the work or talk to the client if they are unavailable. Such work cannot cater to professional management accounting, and since the work and data are acquired through the internet, the chances for mistakes and errors are high. Any mistake in accounting sheets can spell significant consequences in other departments as well.
Online Bookkeeping and Accounting Services
Online bookkeeping and accounting services include providing sturdy technology and professional assistance to clients. The online service providers are often companies armed with new-age accounting software and professional staff with in-depth knowledge of the market. These companies offer their online service packages through monthly or annual reporting.
Since these online bookkeeping services use the latest software and experienced workforce, they prove beneficial for small and mid-sized companies. They not only offer online bookkeeping and accounting with a small margin of error but also streamlines your in-house accounting.
But online bookkeeping companies only manage financial maintenance like record keeping, taxes, reporting, and payroll. If you want accounting strategies and more in-depth data insight into your accounting, you might want to hire a financial officer.
ACE Accounts & tax understands the landscape of small business management and offers dedicated services for you. We have highly-experienced professionals who will devote their complete attention to your accounting needs. You can talk to our Virtual Finance Director to get more information.