If you have a business with money flowing in and out – often more out than in – you need some way of keeping track of everything. Accurate bookkeeping becomes crucial not only to track activity, but to gain a holistic view of your financial situation, and enable better planning and management in the long run. While traditional bookkeeping services may offer a standardized approach, personalized bookkeeping, which often involved cloud-based services, provides a more tailored, targeted service that can help you make business-specific decisions. In this expert’s guide, we will explore the ins and outs of personalized bookkeeping vs old-school methods, and help you decide if this is the route to take with your business venture.
What is personalized bookkeeping?
Personalized bookkeeping (also referred to as cloud-based bookkeeping) refers to a type of bookkeeping service that is tailored to the specific needs and requirements of an individual or business. Unlike traditional bookkeeping services, which may offer a one-size-fits-all approach, personalized bookkeeping takes into account the unique financial situation and goals of your specific situation. This approach can help businesses and individuals better manage their finances and achieve their financial goals through targeted solutions. One size does not fit all.
How does personalized bookkeeping work?
Personalized bookkeeping typically involves an initial consultation to determine the client’s specific financial needs and goals. From there, the bookkeeper or firm will create a customized plan that outlines the specific services they will provide, based on your individual needs as discussed. These services may include financial statement preparation, accounts payable and receivables, bank reconciliations, payroll processing, tax preparation and more. Your bookkeeper or accounting firm will work closely with you to ensure that goals and expectations are met.
Personalized bookkeeping vs traditional methods
Personalized bookkeeping, also known as cloud-based bookkeeping or digital bookkeeping, is an advanced method of bookkeeping that has become increasingly popular, especially since the lockdown imposed a move to online or hybrid work. Unlike traditional bookkeeping methods, which rely on paper records and manual data entry, personalized bookkeeping utilizes digital tools and software to automate and streamline the bookkeeping process.
Here are some of the benefits of using personalized or cloud-based bookkeeping over traditional bookkeeping methods:
- Time Savings: Personalized bookkeeping saves time by automating repetitive tasks, such as rote data entry and reconciliations, which are time-consuming and prone to errors. This allows key personnel to focus on more relevant higher-order tasks, such as growth and expansion.
- Improved Accuracy: Personalized bookkeeping reduces the risk of human error by automating data entry, reconciling bank statements, and generating financial reports. This ensures that the financial information is accurate, up-to-date and available in real time, which is crucial for making informed business decisions.
- Better Financial Control: Personalized bookkeeping provides better financial control by giving management real-time access to their financial information. This enables the entrepreneur to monitor cash flow, track expenses, and identify potential areas of improvement.
- Scalability: Personalized bookkeeping is scalable, which means that it adapts to the changing needs of a business. As a business grows and its bookkeeping needs become more complex, personalized or cloud-based bookkeeping can be adjusted and upgraded with ease.
- Cost Savings: This form of bookkeeping can save on overheads by reducing the need for manual data entry, paper records, and physical storage space. Additionally, businesses can avoid costly errors and make well-informed decisions that lead to increased profitability.
- Improved Accessibility: Personalized bookkeeping allows businesses to access their financial information from anywhere, at any time. This makes it easier to collaborate with remote team members, accountants, and other stakeholders.
Personalized or cloud-based bookkeeping offers a more efficient, accurate, and cost-effective solution for managing a growing business’s finances than older desk-bound methods. By moving to cloud-based bookkeeping, you and your business will stay competitive in today’s online marketplace.
What should I look for in a personalized bookkeeping service?
Getting a bookkeeper or part-time bookkeeping service on board is a big decision, one that can impact your business for years. Not only are you allowing someone a view of confidential financial information, but this is also an individual or team that you will work with for a number of months or years. It pays to choose wisely.
Look for a bookkeeper or company with experience in your industry – especially if you work in a niche environment. Needless to say, education and certifications are the minimum requirement, but make sure to check qualifications and references for peace of mind. Furthermore, remember the importance of communication and availability. You want a bookkeeper who will be accessible and responsive to your needs and questions, and who will keep you updated and informed on any possible sticking points.
Outsourced CFO Services
We know that at the very base of every company’s finance function sits a monthly bookkeeping and reporting process that needs to be rock solid. The team at Outsourced CFO can assist with streamlining your bookkeeping functions through cloud-based, personalized services and software automation.
A streamlined flow of financial information gained through cloud-based accounting enables higher-value financial activities that support your company’s growth, while the lack thereof hinders the ability to make quality financial decisions. Look no further than Outsourced CFO for
- Income and expense allocations that are accurate and make sense;
- A clean balance sheet that reflects your company’s financial position;
- Cash flow reports that help you clearly see what comes in and what goes out;
- Debtors and creditors’ information that support your cash flow cycle;
- A bookkeeping and accounting team that cares about you and your company.
Deploy the best in class cloud accounting tools with Outsourced CFO and support your finance team’s capacity with a dedicated team of accountants who can help get your books in order and your next financial sprint over the line. Contact us here.