When you speak of online accounting service, perhaps your thoughts will only be limited to pages and pages of spreadsheets and virtual calculators. Of course, you can picture someone with an accounting book beside him to ensure that every transaction is well-accounted for and can be considered fair and accurate.
However, what you may not realize is the fact that an online accounting service can actually mean so many things. They may only be referred to as one name, but you can basically pick from these companies wide range of specific services. To give you a glimpse of what you can avail of, you can refer to the list below:
1. Bookkeeping Responsibilities. This online accounting service refers to basic and everyday accounting roles, such as invoicing customers and preparing for their statements, collecting debts and paying bills, and reconciling bank accounts. The person is also responsible for the payroll of other members of the company as well as in the preparation of reports that may be needed by the business owner, especially when it comes to formulation of crucial decisions.
2. Bill Paying Department. What happens when you forget to pay your bills even for one time? There are a lot. First, you have to bear the penalties, which can range to hundreds of dollars. Second, you may damage the credit score of your business, which, in turn, could make it harder for you to avail of loans and other financial assistance for your business. Hiring an online accounting service will definitely save you the headache. He will not only keep track of your financial obligations, but he can also prepare the checks for you to sign and have them mailed to you. Nevertheless, for security reasons, you have to limit their access to your bank account as much as possible.
3. Accounts Payable Department. You just don’t have an obligation to your customers, but you also need to pay your suppliers. If you don’t or you have forgotten to do so, it may lead to the loss of confidence and trust in you. But keeping track on your payable is not an easy feat. This is since different suppliers may require different methods and terms in payment. Some of them may require you to pay up in 30 days, others as short as 15 days. You can then refer to an online accounting service that can help you out in settling your accounts payable. From the time that you will make an order, every transaction is then recorded by the accountant or bookkeeper of your chosen online accounting service into the program or software. He can then modify the settings, so he will constantly be reminded when the payment will already be due. As a matter of fact, even before you can receive your invoice from your suppliers, you already have an idea of how much you will pay and when. The online accounting service can then allow you to develop a more truthful or accurate financial budget for your company.
Indeed, online accounting service can save you the hassle and the money. These people will be your best ally for your business.