Small business owners don’t always have the luxury of hiring human resources staff like big companies, yet they still must keep the books and follow the laws that others do. If you only have a few customers or are a self-run business, filing taxes and keeping your own hours or sales logs usually isn’t too hard. But if you’ve hired multiple employees, make a lot of sales and are on too much of a budget to hire a full-time accountant, you can get an accounting firm or a cloud-based accounting services company to do it. That’s what companies like https://www.keepingyourbalance.com do just as efficiently if not better than in-house accountants.
What SAAS Accounting Looks Like
Not every outsourced accounting company does the same thing, but in general the management principles for software as a service (SAAS) accounting looks similar. As this Small Business Chronicle article explains, you generally don’t need to install any local software on your computer to use a cloud-based accounting SAAS, but you should always have a reliable internet connection. Usually what you’ll do is have your payroll services like clocking in and clocking out connected to the SAAS company’s servers, or you’ll just have the locally-managed data from it uploaded. You can also upload sales documents and other important information to the company cloud and they can organize it for you. Prices for different SAAS accounting companies vary, but you will usually save a lot more doing this than you will hiring your own accountants.
Reasons That Cloud-based Accounting Is Better
While some cloud and SAAS accounting companies offer more comprehensive services than others, the general advantages of this outsourced accounting are the same. As LinkedIn states, you’ve got your data stored in a remote location and that way if a fire or other natural disaster came in and destroyed your local computers, your accounting data is all stored on remote servers. Also, outsourced accounting can be a check age fraud. For example, if an accounting employee was disgruntled about what they were being paid and decided to cover their tracks while embezzling funds, they might attempt to change the books to do so. Letting an outside cloud accounting company do your bookkeeping prevents that since they’re only paid fees by you and not employee salaries. Plus, if you needed to find a financial record that you didn’t know where to look for at odd hours, you can go straight to the cloud accounting company’s website instead of having to call your accountant to go find it.
Many businesses both small and even mid-sized to large are starting to move to outsourced accounting because the costs and overhead are far less, and the rewards to having outsiders manage the books often outweigh the risks. But as usual, you should always do your homework on any cloud-based accounting company you choose to make sure they’re reliable and reputable. Also, be wary of what their privacy policies and data sharing agreements are since some may say in small print that some data is shared with advertisers.