Starting and running a business is no small task. Many entrepreneurs transition from working for someone else who handles scheduling, budgeting, payroll and all of the other myriad of things that must happen at the right time and sequence to keep a business thriving. The shift from being responsible for one’s own job to the overall responsibility of operating the company is often overwhelming.
One of the first pieces of advice typically offered during this tumultuous time is to procure the services of a reputable accountant or accounting firm to take over many of the legal, statutory and tax issues confronting new businesses, and good advice it often is. However, few accounting firms traditionally manage daily bookkeeping tasks which can leave the client sitting up at night with stacks of invoices, receipts and other paperwork.
The advent of virtual bookkeeping has gone a long way toward filling the vacuum between daily bookkeeping and formal accounting. Both accounting firms and business owners are finding that engaging the services of cloud bookkeepers is advantageous. For the accounting firm, having access to financial information in real time permits a closer relationship with the client. It becomes possible to track performance more quickly, thus taking advantage of or avoiding occurrences, whichever is in the client’s best interests.
The business owner in turn becomes free to pursue the reason for his or her existence as a business. With instant access to all accounts and the ability to closely monitor them, time is freed up to actually run the business, oversee employees, consult with customers or clients and to work at growth strategies. One of the primary reasons startups fail is that the entrepreneur underestimates the time and attention which must be paid to the management and administration of the business, which takes away from the main pursuit of the work itself.
Cloud bookkeeping is fast becoming a necessary link to convey information to both the business owner and to the accounting firm which services the business. The marketplace is moving ever faster, and traditional ways of managing accounts and balance sheets has effectively become obsolete. A real time link made possible by cloud bookkeepers permits necessary financial information to flow smoothly and efficiently.