7 Signs It’s Time to Hire a Virtual CFO

As your organisation grows, so does the complexity of your accounting needs. Your bookkeeping spreadsheets will give way to complicated balance sheets and accounts receivable reports. A Chief Financial Officer (CFO) doesn’t handle day-to-day reporting, but they can use your reports to develop an overall strategy and look for growth opportunities. 

A virtual CFO works off-site. They can help you manage costs, look for ways to bring in new business, and analyse financial strengths and weaknesses. And a virtual CFO does it all without needing to be a full-time employee. You can benefit from a CFO’s knowledge at a fraction of the cost when you go virtual. 

7 Signs Your Business Needs to Hire a Virtual CFO

Are you ready to bring a CFO on board? Here are some signs you’re ready to hire a virtual CFO part-time. 

1. Your business is growing quickly

Your business is growing quickly – and faster than you anticipated. Your bookkeeper is there to help you process payroll and manage your bank reconciliations, but what about strategy? A CFO can analyse your industry and make recommendations about how quickly to scale and when to hire new employees. A fast-growing business needs someone to head up the financial department. You can do this more affordably by using a part-time CFO who calls in via video conference when you need a face-to-face.

2. Your financial needs are changing

If your finances are becoming more complex and time consuming, you need additional financial insight. A CFO can figure out where you might be wasting money, savvy ways to grow the company’s value, and more. As your needs change, a virtual CFO can be there on an as-needed basis to hold your hand and offer meaningful advice. 

3. You lack detailed financial knowledge

Let’s be honest. You know your products and services like the back of your hand. How to track cash flow? You’re not an expert. Luckily, you don’t have to be. A virtual CFO will have a level of expertise that surpasses yours. With their assistance, you can make more confident decisions, especially about the big picture of your organisation’s finances. 

4. You Want to Improve the ROI of Your Bookkeeping Efforts

If you’ve already been staying current with your bookkeeping, but you need help identifying opportunities in your financial records, a virtual CFO can help. Many businesses could benefit from hiring a virtual CFO to identify growth opportunities to maximise profits and find new revenue sources.

5. You want to outsource and automate

Financial processes can be more efficient with outside help. If you know you’re ready to outsource some of your essential tasks, starting with a CFO is a good idea. Once your new financial expert tells you where you can cut costs and where you should spend, you’ll have a better idea of what else could be outsourced. 

Your CFO can also help you streamline processes, including automated reports. Did you know many accounting programs can automatically pull data from your business’ banking account every month? Your CFO will sort it out for you. 

Read More: Your Guide for Finding the Best Bookkeeping Service

6. You want to maximise your CFO ROI

When you hire a virtual CFO, you’re getting all the expertise of a seasoned executive without the hefty price tag. Your virtual CFO will have access to a broad network of investors, executives and other useful connections. All of this without having to clear out an office in your building.

Your return on investment, or ROI, can be significantly higher when you go virtual. Many virtual CFOs are willing to operate on a more flexible, part-time basis, and you don’t have to provide the same full-time benefits or equipment that you typically do with permanent employees. 

7. You need improved financial reporting

Accurate documents are necessary to keep your finances in the black. Accounts payable reports, bank account reconciliations, and your general ledger are difficult to juggle. If one of them hits the floor, so could your strategy. If your current reporting schedule is a little helter skelter, your new CFO can transform your financial processes. While your bookkeeper will implement new processes, your CFO can help do everything from vetting accounting software to analysing reports. 

Is it time to explore virtual employees? An off-site CFO and online bookkeeping both help you make your accounting department more efficient. The return on investment is impressive. Visory’s bookkeeping service can set you up for success, by keeping your finances organised so that a virtual CFO can have an impact right away.

5 Reasons Why Your Startup Should Use an Outsourced Bookkeeping Service

You’ve been doing your own books since you opened your business. And you’ve been doing a stand-up job, if you do say so yourself. But this strategy can’t last forever. You’re probably starting to realise that you don’t have the time required to look after your bookkeeping by yourself as your business grows. Not only do you want to be ready for tax season, but you want your books to be in the best shape possible to help with cashflow management and strategic planning. 

The bottom line is your startup needs bookkeeping help once it gets off the ground. If you’re not ready to hire someone full-time, you have two main options. You can hire someone in-house on a part-time basis or use an outsourced bookkeeping service. An outsourced professional gives you full-time access to financial help without having to pay a full-time salary. 

5 Reasons to Use an Outsourced Bookkeeping Service

1. Outsourced bookkeeping helps you optimise your resources

Keeping a general ledger, learning to manage payroll, and preparing financial reports are all time-consuming. These tasks will eventually require a tremendous amount of precious resources (and the people doing them are usually handling other essential business tasks as well). Once you have more than five employees, experience accelerated growth, and/or decide to add extra products, staff, or services—it often makes sense to enlist some bookkeeping expertise. 

An outsourced bookkeeping service can help free up time in your organisation. And more time means more focus on activities that can help you grow, such as marketing, business development, and other essential growth-related activities. 

2. Outsourcing your books makes scaling more realistic

As you grow, deciding to outsource bookkeeping and accounting can help you take on new financial challenges or accounting practices. If you need to hire more full-time staff, for instance, having more bookkeeping help on call means you won’t miss a payroll period. You can also take on additional reports regarding your financial health. These reports, in turn, help you identify areas of potential growth and scale upward at the most advantageous rate. An outsourced expert can also implement double-entry bookkeeping or more complex reporting styles that are required for large companies. 

A startup business has a meeting to discuss finances..

Photo by Cherrydeck

3. Outsourcing your bookkeeping puts you in touch with experts

You know your vision for your business, you know your product or service, and you can recite your elevator pitch on demand. What you may not know is how to implement best practices for bookkeeping in your industry. Many startups are filling a niche category in the market, making your finances all the more unique. A qualified outsourced bookkeeping service does the vetting for you, so you don’t have to worry about enlisting the wrong person. 

An outsourced bookkeeping service can connect you with a financial expert who knows the best way to scale up in your industry, and which government reports you need to lodge at the end of the year. They can create a bookkeeping system that meets all your needs. 

4. Outside help with accounting helps to keep you tax compliant

Small businesses and large businesses have differing tax reporting requirements, depending on their annual income and structure. And it can be difficult to get it right. Some taxes are administered by the Australian Taxation Office or New Zealand’s Department of Inland Revenue, while others depend on the state where you operate. An outsourced bookkeeping expert will best know what reports you are required to lodge and when the deadlines are. 

5. Outsourced bookkeeping services get you ready for investors

Before an outside investor takes a chance on becoming a stakeholder, they will want to see detailed financial information. Everything from your current debts to your cash flow can help investors make an informed decision. Outsourced bookkeepers ensure your books are up to par and can take care of the reporting and insights needed to be investor ready. 

Many startups fail within the first five years of operation. If you want to make it, accurate bookkeeping is an essential undertaking. An outsourced bookkeeping service helps you connect with an industry expert, scale responsibly, remain tax compliant, and more. At Visory, we handle accounting needs for businesses that are growing from a small business to a more thriving enterprise. You will have full access to statements and reports around the clock. You can even choose a dedicated bookkeeper who will become a trusted member of your team. In short, Visory is your secret weapon to business growth. 

Bookkeeping Basics: The types of bookkeeping accounts every business owner should know

As a business owner, you’re the top expert on your company’s products and services. An expert on controlling a balance sheet? Umm… not so much. Yet, knowing the back office like the back of your hand is essential to running a thriving organisation. Understanding types of bookkeeping accounts and tax timetables help you better plan for business growth. 

Is the language of the back office a bit daunting? Don’t be scared off. Learn the basics of bookkeeping terms and various methods of accounting. Once you better understand your accounting practices, you can become an expert on your business’s financial health.  

Basics of bookkeeping

Even creative executives should know basic practices. Budgets for social media, marketing, and advertising will be informed by available funds, after all! You’ll hear these fundamental buzzwords in any bookkeeping meeting worth its salt. Here is what they mean. 

  • Accounts payable – Your accounts payable includes any amounts owed to a supplier or other business. If you have received a good or service but not yet paid for it, your supplier’s invoice goes into your accounts payable. 
  • Accounts receivable – These are invoices that reflect money owed to your business. In short: unpaid bills from customers or clients. 
  • AssetsAssets include a combination of your accounts receivable, property and equipment owned by your company, product inventory, and liquid funds. 
  • Liabilities – Your liabilities combine accounts payable with other debts like bank loans, outstanding payroll, and credit card balances. 
  • Revenue – This term relates specifically to the money your company makes from its goods and services. 
  • Expenses – Your expenses are more than what it costs to run your business and sell your goods and services. This factors in everything from utilities and cleaning costs to salaries and insurance. 

Photo by Mikhail Nilov from Pexels

Types of bookkeeping accounts

There are various types of bookkeeping accounts and ways to calculate your taxable revenue. The way you record transactions and manage debits and credits often varies depending on your organisation’s annual income and the complexity of your expenses. Here are the most common types of accounting any executive needs to be familiar with. 

  • Cash basis accounting – Under this accounting scheme, you only record a transaction when the cash actually trades hands. Cash basis accounting is ideal for small businesses. 
  • Accrual basis accounting – When your business uses accrual basis accounting, you record a transaction when the service is complete — even if you haven’t been paid yet. 
  • Single-entry bookkeeping – In single-entry bookkeeping, you only record each transaction once. For instance, if you make a sale of $100, you only record it as revenue of $100 when using the single-entry system
  • Double-entry bookkeeping – When you implement a double-entry bookkeeping system, each transaction is recorded twice. For instance, when you make a sale of $100, you note it once as $100 revenue and once as $100 in lost inventory. Double-entry bookkeeping balances your credits and debits. 

Other bookkeeping terms you need to know

  • Cash flow – Cash basis accounting is the best way to track cash flow accurately, but any accounting scheme must track how much cash is coming in and out of your business. 
  • Cost of goods sold (COGS) – This term relates to the total cost of producing your products, including materials, labour, and other overheads. 
  • Owners’ equity – If you calculate total assets and subtract the total liabilities, you can calculate the value of your ownership. 
  • Balance sheet – A balance sheet lists assets, liabilities, and owner’s equity. It provides a snapshot of your financial health at any time and a look at your net assets.  
  • Manual bookkeeping Manual bookkeeping are records kept in paper form. The Australian Taxation Office recommends keeping your records for five years. 
  • Cloud bookkeeping – Electronic records are usually produced using bookkeeping software. You’ll also want to keep these records for at least five years. 

Running your business can often remove you from the day-to-day accounting processes of your organisation. But knowing your way around a balance sheet helps you track growth and know when it’s time to scale. When you enlist Visory as a bookkeeping service, you have access to a trusted team of bookkeepers who will do the heavy lifting of record keeping. If you don’t know your way around a general ledger, we’ll show you the way. 

Preparing Your Business for EOFY 2021

Let’s be honest: Preparing for the end of the financial year (EOFY) makes your brain hurt. Tax time is simply a pain in your you-know-what. Between unexpected tax bills and finding out your books are less organised than you thought—unpleasant surprises seem to be around every corner. Even if all goes well, the process is still laborious. 

EOFY prep can require catch up bookkeeping when you’re not up to date — filling information gaps for your accountant and looking for lost receipts. Switching to real-time bookkeeping and oversight sets you up to have better reporting for FY 22. Good bookkeeping can equal less tax and a smoother compliance process. Visory can help. 

5 ways to prepare your business for EOFY

In Australia, with EOFY  just around the corner, your business has the chance for a fresh start on July 1 each year. Here are five tips for keeping your headaches to a minimum. 

Organise your records

The best way to make EOFY painless is good record keeping. Ideally, you’ll do this throughout the year. However, if you’re scrambling this year because COVID turned some things upside down, it’s not too late to organise your paperwork. Make sure you hit these key points:

  • Write down all due dates. Lodging your tax returns and records late can result in fines or make your taxes incomplete. 
  • Gather receipts. To be prepared for EOFY, you will need everything from sales records, credit card statements, bank statements and receipts. Anything you tracked in accounts payable or accounts receivable will need to be reconciled and reported. 
  • Organise employee records. You’ll also need to find your records for all wages paid and current superannuation details. PAYG payment summaries, too, because these reports must be lodged at the end of the financial year. 
  • Reconcile bank statements. Most banks will provide records of each transaction. Make sure you have a full report for all business bank accounts on hand as you prepare your end of year financial reports. 
  • Balance the general ledger. Has your ledger been kept up to date? This tracks each transaction by category and will inform your available deductions, as well as help to reveal the overall health of your organisation’s finances. It must be up to date by EOFY

Plan deductions and concessions

Many businesses reduce their taxes by claiming deductions and concessions. You might be surprised at how many aspects of your business qualify for a deduction — especially for small businesses. Things like office equipment, motor vehicle expenses, rental property costs, and travel expenses are commonly deducted from your assessable income. 

Ensuring your accounting software is up to date and accurate helps you ensure you won’t miss a deduction. Also, if you’re working with a professional, make sure they are working with the latest software and that their personal licence is up to date. 

Make a compliance checklist

EOFY requirements extend beyond lodging your tax returns. In fact, businesses across Australia have unique compliance needs depending on their size, revenue, and entity type. Do any of these compliance requirements apply to your business?

  • Public Sector entities must prepare financial end-of-year statements in accordance with the Public Governance, Performance and Accountability Act 2013. For more information about the standard parameters document and more, check out this list of compliance-related documents for commonwealth entities. 
  • Media holders in Australia with foreign stakeholders must meet very specific compliance reporting
  • Most business entities are required to lodge at least some government reports at EOFY. Section 292 of the Corporations Act 2001 (Corporations Act) outlines more specifically what is required of various entities. This includes public entities, all disclosing companies, and some small proprietary companies. 

Write off bad debts

Writing off bad debts (unpaid invoices, for instance) can be considered a tax deduction. Gather all uncollectible invoices and other extensions of credit and have them ready for reporting. This clears the slate of unrecoverable money owed to your business’ that are owed to your company moving into the new financial year. 

Create a plan for next year

If your EOFY was a pain this time around, you don’t have to simply do it all again next year. With the aid of professional bookkeeping services, you won’t feel the full burden of the necessary reports and tax lodgements. So make a plan now for how you will switch to real-time bookkeeping and reporting moving forward. 

Visory is here to help with catch-up record keeping, payroll and insights, and ongoing internal finance support. Be ready for the next EOFY by partnering with a trusted team of experts now. 

Cash vs. Accrual Accounting: What’s Best For Your Business?

Graduating from a small-to-medium sized business to a larger enterprise means business as usual may need to change. This includes how you report on your business income and expenses. While small organisations can choose between cash basis accounting and accrual basis accounting, once you’re a big deal you can’t report your earnings on a cash basis anymore. 

Let’s talk more about cash vs. accrual accounting and how to get help if you don’t know how to make the change. 

What is cash basis accounting?

If your business has an aggregated turnover of less than $10 million, you can choose to calculate your goods and service tax (GST) using a cash method of accounting. What does this mean? Your internal finance team will only include transactions in tax reporting when money changes hands. In other words, when you make a sale, you’re not responsible for recording it until you actually get paid. 

When comparing cash vs. accrual accounting, here are some things to know about cash basis accounting:

  • This method of accounting works best for small companies who primarily deal with cash transactions. 
  • Cash accounting helps you track cash flow and determine what is in your bank accounts.
  • If you receive an invoice from a vendor, you don’t record it until you pay it. 
  • If you send an invoice, you don’t record it until the payment clears. 
  • Regardless of annual GST, you can use this method if your organisation is a government school, endorsed charitable institution, or gift-deductible entity.

What cash basis accounting can’t show you is the debts that are currently outstanding, and accounts receivable payments that have yet to be settled. 

What is accrual basis accounting?

With accrual basis accounting, you track your costs and earnings when they take place, regardless of when you get paid or when you make payments. This type of accounting is required of large, enterprise companies. It can also be good for organisations of any size that don’t get paid right away but want a full financial picture.

Here are key takeaways for the accrual accounting method:

  • This method is helpful when tracking a variety of accounts and large amounts of revenue and expenses. 
  • You can expect the method to be more complicated, because you have to track actual cash on hand plus outstanding income and costs. 
  • If you complete a service, you report it even if it hasn’t been paid yet. 
  • If you receive an invoice, it’s recorded as a debt even if you haven’t sent cash yet. 

What are the main differences between cash and accrual basis accounting?

Cash vs. accrual accounting differ primarily in the way you keep records and detail your cash flow. Here is a simple breakdown. 

Cash basis accounting

When you are tracking your taxable income using cash basis accounting, you have an accurate idea of your cash flow. You’re only tracking funds as they actually come in and go out, which means your reports are better aligned with cash flow reports. On the other hand, your reports don’t give a full idea of financial health. Your cash flow may look favourable, but you could have thousands of dollars in unpaid costs that are not readily visible. 

Accrual basis accounting

This type of record-keeping is more complex, but also yields a more accurate picture of your total financial earnings and expenses. You’re not tracking just actual funds, but also expected income and costs. If you have a floor installation business, for instance, you would report the project when it’s done — even if the final invoice is outstanding. This doesn’t give you the most accurate picture of real cash flow, since you’re counting income that isn’t on hand yet. The reporting is more complex because you are recording money owed to you and money you owe. 

Which one is best for my business?

Either method may work for small businesses, but large businesses should stick with accrual basis accounting. Your internal finance team may need to include a bookkeeping service given how much more involved accrual basis accounting is than simple cash record keeping. 

Small businesses can choose between cash basis or accrual basis accounting, with cash basis accounting ideal for businesses that deal in small cash transactions. Larger companies must use accrual basis accounting in Australia by law. But even if you don’t meet the mandatory threshold, you might want to switch to accrual basis accounting to get a better picture of outstanding debts and anticipated income. 

Connect with Visory today, and our team of internal finance experts can help you set up accrual-based accounting Wrap up the main arguments and then soft CTA on how Visory can help with setting up your accrual-based accounting.

CFO Services: When Your Business Needs a Finance Expert (and How Visory Can Help)

As your business graduates from a small operation to an organisation with a full back office, you’ll need to hire new financial experts. Growing your business requires careful planning and forecasting. But, what if you’re not quite ready to pay the salary of a Chief Financial Officer (CFO)? That’s where virtual CFO services come in handy.  

A part-time, remote CFO leads your team onward and upward without eating up your back office budget. You can even use a virtual CFO to attract a potential buyer if you want to position your company to be acquired. Let Visory help you determine when you need a CFO and how to leverage CFO services to expand your business. 

What is a CFO and what do they do?

A CFO plays a vital role in any growing company. In fact, enterprise businesses absolutely need this position to scale and succeed. This is because a CFO goes above and beyond daily accounting duties. While your accountant is running payroll and keeping the general ledger in line, your CFO is taking a bird’s eye view of your organisation. 

Your CFO may handle business strategy, budget modelling, and reports for stakeholders. A Chief Financial Officer also takes on the tasks of advising executive boards, managing cash flow, and forecasting the revenue of the product pipeline. In other words, a CFO is responsible for big picture financial decisions and projections. The best CFOs can spot a financial windfall possibility and also catch an upcoming revenue fall before it happens. 

How CFO services can help your business

CFO services can do what a day-to-day bookkeeper or accountant may not have the time or experience to do — tackle the overall financial health of your organisation and help strategise for the future. 

It’s also worth noting that company directors in Australia, including CFOs, have a duty of care and diligence under both general law and the Corporations Act 2001. You want to have an experienced leader in this role. 

Here are some ways adding a virtual CFO service to your business can help push your business to the next level. 

  • Expert reporting. Your directors may be called upon to file reports to the Australian Securities and Investments Commission (ASIC). Having a CFO on hand makes this process easier. The CFO will have enough knowledge of your company’s finances to declare that your company can pay its debts, has a culture of accurate financial reporting, and is in compliance with any government standards. 
  • Internal management. Other financial team members, including accountants, often fall under the leadership of the CFO. Having this position filled means other executive members can free up their time instead of tracking the moves of the finance department. 
  • Strategic advice. An experienced CFO knows how to grow the financial health of a company. You have an in-house financial advisor at all times. Your CFO will make sense of financial information and use your books to define business goals, opportunities, growth rate. 
  • Capital management. When you need to raise capital, just having a CFO helps you look more stable. Even a team of outsourced CFO services is an advantage. Your CFO will present a compelling financial picture to lure in potential investors and lenders. 

Advantages of outsourcing a CFO

When you want to scale your business fast, virtual CFO services are a cost-effective solution. You won’t have to budget for a competitive full-time CFO salary (or benefits) to access the expert strategy a CFO can offer. 

Visory services are an extension of your business. Bringing a virtual CFO into the squad isn’t like having a vendor — your finance expert will understand your industry inside and out and become a trusted team member. Outsourcing your CFO to a virtual service also means you save the time and expense of interviewing candidates. As a result, you can drive your business and remain competitive without taking a month or more to hire the perfect full-time CFO. 

Financial growth is challenging in the best of conditions. A CFO can help you resolve any bumps in the road and offer their experience. An outsourced CFO becomes a member of your financial team without the cost of a full-time salary, which can be music to the ears of small-to-medium size businesses. For those businesses which are on the road to becoming an enterprise-level company, a virtual CFO is often a secret to success. Contact Visory today to learn more about how a virtual team can help businesses of almost any size reach the next level. 

Do I Need a Bookkeeper, an Accountant, or Both?

As a small business grows into a medium- or large-sized operation, it may no longer make sense for the founder to balance the books. Imagine a time-starved back office employee trying to itemise and code transactions. With what time? While office managers can fill some of the gaps, a bookkeeper or an accountant must eventually be welcomed into the fold. 

The terms bookkeeper and accountant are often used interchangeably, but in fact, they are not one and the same. The educational requirements, daily schedule, and specific skills of these two roles can overlap but are not synonymous. Let’s look at why accountants and bookkeepers can each help your business–and how to tell if you need a bookkeeper or an accountant

What does a bookkeeper do?

Bookkeepers are responsible for the day-to-day record keeping of your business’s money. The duties of a bookkeeper can include documenting financial transactions, posting credits and debits to a balance sheet, processing payroll, generating invoices, and merging accounts. The bookkeeper may also stay on top of the vital records required by the Australian Tax Office (ATO) or New Zealand’s Inland Revenue Department (IRD). 

In short, bookkeepers create the financial records that an accountant can later analyse and use to create more complex reports or file full tax returns. A bookkeeper is the first stage in the accounting process. They benefit your business by tackling daily financial records that must be accurate in order to create useful reports later. 

Who is a bookkeeper? Some bookkeepers are trained by their employers, but other bookkeepers learn their skills by getting a Certificate in Accounting and Bookkeeping and registering to become a BAS Agent. You may want to hire a bookkeeper if you have a tax accountant but need someone to handle your office’s in-house financial records at medium-sized companies. 

What do accountants do?

Not only will an accountant use the records that a bookkeeper created, but they will also crunch the numbers on their own reports. Their work tends to be more senior level and they may even advise the company regarding high-level company decisions. As a result, the salary of an accountant can be nearly double that of a bookkeeper. 

The typical role of an accountant encompasses things like prepping for taxes, preparing financial statements, plotting the growth of your business, verifying that the company’s finances are government compliant, examining revenue and recommending budgets, resolving accounting discrepancies, and setting up accounting processes. When you’re deciding between a bookkeeper or an accountant, you know you’re ready for a full-time accountant if you have the need for financial analysis and advice regarding the impact of financial decisions. 

An accountant may have a Diploma of Accounting or another advanced degree. Many businesses can get by with one in-house accountant, but you may need the expertise of a whole team as you grow and scale. 

When you need both an accountant and a bookkeeper

OK, but when might you need both a bookkeeper and an accountant? There are some benefits to having both roles working side by side. The separation of duties may help you remain compliant with government reporting and provide a built-in cross-checking system. The books recorded by the bookkeeper will be double-checked by the accountant. This can eliminate some mistakes. 

A complicated tax structure may also call for both roles. You want one professional to keep an accurate general ledger and track daily expenditures (the bookkeeper) and another to analyse the books, look for available tax credits, and prepare tax reports (the accountant). If your business is growing and in search of investors, having both a bookkeeper and an accountant also strengthens the financial picture of your growing organisation. 

Do you need a bookkeeper or an accountant, or both? Bookkeeping services keep your day-to-day financial tasks done on time. You’ll never miss payroll again. Meanwhile, an accountant offers more robust analysis and internal financing advice. Larger companies probably need both. Bookkeeping services keep you running smoothly in the present day and accountants make sure the future remains stable. 

If you need a team of financial experts to keep your company’s ship upright, contact Visory. Our virtual teams are tailored to the expertise you need and we can tackle bookkeeping and accounting projects large and small. We’ll become such a part of your team you’ll want to invite us to the holiday party (after we tell you if that can be expensed).

Outsource Bookkeeping: Your Guide For Finding the Best Bookkeeping Service

Man in blue Oxford shirt inputs numbers into a calculator for his outsource accounting client.

As your business grows, the numbers you crunch keep getting bigger. Soon you’re burning the midnight oil just to balance the books. You could use some help. When a business goes from small to medium, it often makes sense to start outsourcing your bookkeeping and accounting. 

An outsource bookkeeping service frees up lots of time and energy and allows you to put off hiring a full-time employee. Plus, there’s no need to sort out a new accounting software that won’t always catch all of your mistakes. 

The average salary for a bookkeeper in Australia is almost $70,000 per year, while you may be able to get outsourced bookkeeping for as little as $2,500 per month. If you only need someone part-time, buying services per hour or per project is often the financially savvy choice. Read on to learn more. 

Benefits of outsourcing your bookkeeping

An outsourced bookkeeper can become a part of your team, even though they’re not in-house. And in some cases you have access to a whole team of supportive experts instead of just one employee. The key benefits of outsourcing your bookkeeping as a medium-sized business include:

  • Lowering your overhead — You get the benefit of balance books without paying for office equipment or salary for an employee. 
  • Gaining access to your books at any time — You don’t want to wake your employee at 11pm to access a report, but a virtual bookkeeping service gives you 24/7 visibility into your report. 
  • Having an expert on your side — Companies like Visory can pair you with an expert in your industry, so there is no need to hunt one down on your own. 

What task can a virtual bookkeeper do for your business?

An experienced virtual bookkeeper will show up on Day 1 ready to get to work. In fact, one of the main benefits of hiring an outsourced bookkeeping service is that you don’t need to train a bookkeeper or find someone who understands confidentiality.  

Your virtual bookkeeper will be vetted for their professionalism and expertise. An outsourced bookkeeper can complete the following services (and often more!) based on your needs:

  • Get your books up to date if you’ve been without accounting services in the past and need a clean up. 
  • Maintain balance sheets, payroll, and other books going forward. 
  • Tracking bills and handling accounts payable and accounts receivable. 
  • Managing your payroll process and tracking expenses. 
  • Helping you prepare your taxes. 
  • Preparing reports for potential investors and analysing the health of your company’s finances. 
  • Keeping track of your cash flow

How does outsource bookkeeping work?

You might like the idea of more affordable bookkeeping, but where do you start? With a company like Visory, it couldn’t be more seamless. The onboarding process is fast and we get right to work straightening out your books. In addition to bookkeeping services, you’ll have access to an entire financial team if you want your financial reports on the weekend or require additional services as your business grows. Plus, with a whole team at your disposal, you don’t have to fear losing your bookkeeper and scrambling to balance the books until you find a replacement. 

Outsource bookkeeping from Visory pairs you with a specialist who is trained for your industry segment and allows you to scale up as your needs grow. You don’t have to fire and hire a new bookkeeper as you add on more payroll needs or decide to do monthly reporting instead of quarterly. A good virtual bookkeeper is focused on outcomes and strategy — not just doing the bare minimum. They can even offer insights about how to drive your business. 

How much does outsource bookkeeping cost?

As we mentioned above, an outsourced accounting service can offer rates competitive to a full-time staffer — with more services than you’d get from one employee. If you have unique needs, you can even get pricing based on a specific proposal or project. 

At the same time, Visory offers a fixed rate unless you add on additional services. So you can count on a consistent cost as opposed to experiencing fluctuating invoices each month from a contractor or potential overtime. No surprises here. 

Is outsource bookkeeping right for my business?

If you’re worried about your books, don’t have time to balance them yourself, and want to avoid hiring a full-time employee—outsource booking might be the solution you seek. It can also work if you have an accounting team but know you need more help to scale. 

Sign up with Visory today to learn more about our custom bookkeeping plans and pricing for businesses of all sizes.