As a nonprofit organization or small business, there are many benefits of outsourcing bookkeeping to a trusted accounting firm. A reliable bookkeeper helps with financial growth and also ensures compliance with tax regulations. To keep yourself clear of penalties, fines, and legal action, it’s vital to remain in good standing with the IRS. In this post, we’ll highlight how Velu streamlines the bookkeeping process for organizations remotely and the various advantages our services provide to our clients.
How does remote bookkeeping work?
Remote bookkeeping is a method of managing financial records and transactions through the use of technology, such as cloud-based software and digital communication tools. Some of our preferred tools are Karbon, Quickbooks, and Divvy. These tools ensure our remote bookkeeper can access and update financial records remotely and through a secure online portal. It makes real-time collaboration and communication between the bookkeeper and the business owner straightforward.
Outsourced bookkeeping for nonprofits and controller services can include invoicing, payroll management, bill-pay services and financial statement preparation. An outsourced bookkeeper would typically handle the invoicing process by creating and sending invoices to customers on behalf of the organization. They would also track payments and follow up with customers as needed to ensure timely payment. In terms of payroll management, an outsourced bookkeeper would handle tasks such as calculating employee pay, tracking vacation and sick time, and handling payroll taxes and compliance. They would also ensure that employees are paid on time and that all required tax forms are filed correctly.
When Velu sets up accounting systems and processes, we are able to provide one of our most beneficial services, financial statements. We see it as an essential element of bookkeeping. Our outsourced bookkeepers use the financial records provided by the organization to create accurate and timely financial statements such as income statements, balance sheets, and cash flow statements. They would also review the statements to ensure they are accurate and in compliance with accounting standards.
At Velu, our remote bookkeeping works thanks to our refined onboarding process. After learning the ins and outs of your business or nonprofit, we align our processes to meet monthly growth goals. We also train our client’s staff members on how to maintain the books to our standards. We know that bookkeeping and accounting can be tedious and time consuming. That’s why our goal is to free up space for a CEO or Executive Director. Here are 5 other benefits of outsourcing bookkeeping!
The 5 Benefits
1. Work with an Industry Expert
Nonprofit bookkeepers have specialized knowledge and experience, which can be invaluable when trying to keep track of grants, in-kind donations, and other funding streams. They understand the unique financial reporting requirements and accounting standards and can help ensure that your organization is in compliance with these standards. In addition, a nonprofit bookkeeper will have a deep understanding of the financial systems and processes that are specific to nonprofits, which can help streamline your financial operations and improve efficiency.
2. Control Overhead Expenses
Accurate bookkeeping can help a business get a grip on overhead expenses by providing clear visibility into where money is being spent. An outsourced bookkeeper can track and categorize expenses, identify cost savings opportunities, and make strategic decisions to control spending and improve efficiency. This can ultimately lead to increased profitability for the business.
3. Receive an Accurate Return on Investment (ROI)
A reliable bookkeeper can help businesses understand their return on investment (ROI) better. Oftentimes, there can be hidden costs to a product or service, which can slowly lead a business or nonprofit to financial ruin. Bookkeepers help uncover these potential pitfalls. Additionally, having accurate financial data can help identify patterns or trends that may have been missed otherwise, providing valuable insights on how to make a business more profitable.
4. Taxes are Quick, Accurate, and Painless
Outsourcing bookkeeping can make tax season much easier for small business owners and nonprofit leaders. A professional bookkeeper will keep track of all financial transactions throughout the year, making it easy to gather all the necessary information for tax preparation. They will make sure that all expenses are recorded properly and that all income is accurately reported. This will help to ensure that the organization is in compliance with all tax laws and regulations and can help to minimize the risk of an audit. Additionally, an outsourced bookkeeper can help to prepare and file all necessary tax forms and provide guidance on any tax-related questions. This can save business owners and nonprofit organization leaders a significant amount of time and stress during the busy tax season.
5. Save Yourself the Cost of a Full-time Employee
Full-time employees come with a range of additional costs, such as benefits, vacation time, payroll taxes, training, turnover headaches, and sick leave, which can add up significantly. Oftentimes, a full-time accountant and bookkeeper can be overkill for a small business or nonprofit. Working with a contractor can be much more affordable, especially when you can create a customized package with the specific services that you need. You can scale the services you need up or down depending on the needs of your business, which can help you save money in the long run.
Wondering if Velu’s outsourced bookkeeping and controller services are a smart investment for your organization? Book a free discovery call with us! Every organization and business is different, but we can provide insight on what services you need. Even if we aren’t the right fit, we can help you figure out what might be.
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Tyler Wilcox, CPA
Tyler has worked with businesses and nonprofits from small to large. His expertise in accounting, tax, consulting, and auditing set the foundation for his outsourced accounting solutions. Now, Tyler works exclusively with nonprofits by providing CFO (Chief Financial Officer) services.
Learn more about Tyler and the Velu team on our About Us page.