Thought Leadership from the Leaders in Virtual Accounting and Bookkeeping Services

3 Reasons Outsourced Accounting Is Not A Trend

Posted by Kris Merritt on Mon, Oct 20, 02014

I sat down, under the guidance of our marketing department, to write a piece on “The Trend Toward Outsourced Accounting Services.” It just didn’t feel right, though. Several years ago that title would have been accurate. But U.S. businesses have been moving “toward” outsourced accounting for a while. Now we’re there.

I’d even hesitate to call outsourced accounting a “trend,” because that word implies a sharp incline and eventual fade into oblivion. On the other hand, outsourced accounting is here to stay. As I turned to trusted industry sources and analysts, I found the figures to back me up.

The information we’re about to share shows that outsourced accounting is not a trend, at all, but a zeitgeist, driven by the growth of cloud-based accounting solutions, greater cost-consciousness on the part of business owners, and a growing comfort with outsourcing business processes in general.

1. Outsourced accounting shows steady market growth.
The global multi-process finance and accounting outsourcing (FAO) market grew by 10% to reach $4.3 billion (Annualized Contract Value) in 2012, according to a report by the Everest Research Group. (http://www.everestgrp.com/wp-content/uploads/2013/05/FAO-Annual-Report-Executive-Summary-May-2013.pdf)  Ten percent growth may not sound like a lot and, in fact, it’s not an exceptionally high number. However, this rate of growth is indicative of steady and gradual growth that shows true staying power, not a flash-in-the-pan trend.

2. Businesses are happy with outsourced accounting value and results, year after year.
A substantial portion of that 10 percent growth (65%) came from clients who started using outsourced accounting in previous year and have continued, extending their contracts with their service providers.

This, more than anything, shows that outsourced accounting is not just a trend. It’s a way of life for many business owners today.

3. Business owners evaluate cost plus value proposition when choosing outsourced accounting services.
Business owners originally turned to virtual bookkeeping and outsourced accounting because of lower costs. But as the industry evolved, and virtual accounting firms began providing greater value than in-house bookkeepers could, business owners began evaluating their choices in virtual accounting based on much more than just cost. This is an indication of a mature marketplace.

Outsourced accounting may save business owners money, http://www.accountingdepartment.com/blog/bid/348887/Traditional-Vs-Virtual-Accounting-All-The-Expertise-At-Half-The-Cost especially when you look at the overhead saved by not hiring in-house employees. But the true benefit in an outsourced accounting firm is the value the company provides, offering bookkeeping, accounting and financial controllership services, all with the convenience and security of cloud-based accounting.

The latest Everest Group report shows we’re not the only ones who understand these important benefits. Are you ready to join the “trend” of businesses that outsource bookkeeping services through a virtual accounting firm?

Read More

Tags: accounting strategies, small business bookkeeping, bookkeeping services

How to Read Your Company Snapshot in Quickbooks Online

Posted by Kris Merritt on Fri, Oct 17, 02014

If you are using QuickBooks Online for your accounting and bookkeeping, you should learn about the Company Snapshot feature and how to use it. The Snapshot feature gives you the opportunity to understand how your company is doing overall, and what you need to change for the future, whether you handle your own accounting or you enlist the help of an online bookkeeping service.

Major Sections of the Company Snapshot

The Company Snapshot is a panel that is updated in real time with all of your company's information that's entered into QuickBooks. The program parses the information and presents it in an easy-to-read overview that's invaluable to a busy business owner. The areas represented on this panel include income trends, expense charts, the balances of all accounts associated with Quickbooks, the breakdown of income sources, vendors owed money, expense line items and accounts, top grossing customers and vendors, top inventory, and any accounting reminders, income and expense comparison to last year.

If you don't have full administrator access to QuickBooks, the data that you do have access to is shown within the snapshot. You or your employees who are not authorized for all sections are restricted to the accounting information in the other accessible sections. If you don't need all of the information the snapshot shows, you can customize this page. 

Read More

Tags: Bookkeeping Best Practices, bookkeeping services, accounting services, quickbooks tips

9 Top Small Business Blogs for Entrepreneurs

Posted by Bill Gerber on Tue, Oct 14, 02014

Starting and growing a business requires a mix of guts, inspiration, dedication and know-how. As providers of bookkeeping services for small businesses up to $25 million, we have the privilege of seeing firsthand how many of our clients have mastered this formula to drive their businesses to success. We're proud to supply our clients with all the knowledge and support they need to master financial management--but we recognize that there are additional resources out there that help provide additional education on other areas of business development. As such, in addition to our own blog for accounting and bookkeeping information, we've rounded up some of our personal favorites in the small business blogosphere to help small businesses find the information they're looking for, no matter what the topic of expertise.

Read More

Tags: Small Business Advice and Tips, small business tips

What A Grant Means for the Future of Bookkeeping

Posted by Bill Gerber on Thu, Oct 09, 02014

We typically write extensively on best practices in bookkeeping services, new trends in accounting technology or even simple "how-to's" for operating and managing your accounting programs. However, today we're changing it up a little bit to talk about something we're actively working on--and we hope you can help us. If you don't have time read further, please just go vote for us. Otherwise, read on to see how we're about to disrupt the bookkeeping industry (but, we still need your help).

Read More

Tags: small business

Top 5 Ways Outsourcing Accounting Helps Startups

Posted by Bill Gerber on Tue, Oct 07, 02014

Are you a startup entrepreneur just learning which services you will need to run your business more smoothly? The trend today is to outsource many of the tasks not related to your company’s core competency – that is, the activity that will ultimately drive revenue and grow your company - or, the reason you started your business in the first place. This includes outsourcing everything from marketing and design, to sales, IT, and administrative tasks.

Read More

Tags: accounting strategies, outsourced accounting services, bookkeeping services, startups

How Billing with Quickbooks Online Can Improve Cash Flow

Posted by Kris Merritt on Thu, Oct 02, 02014

Every bookkeeper knows that when a company has adequate cash flow, it provides multiple opportunities to lower operating costs. Early payment discounts offered by vendors can be taken advantage of. Lines of credit are accessed less often, decreasing their related interest expense. Cash purchases of assets can save money on financing. A healthy cash flow also creates a strong financial statement for your business when negotiating rates with your banker.

Read More

Tags: accounting strategies, accounting software, quickbooks tips, quickbooks training

Accounting Software Updates: Get to Know QuickBooks 2015

Posted by Dennis Najjar on Mon, Sep 29, 02014

Read More

Tags: accounting software, accounting services

What You Need to Know: Recent Updates for QuickBooks Online

Posted by Kris Merritt on Thu, Sep 25, 02014

There is no denying that managing the financial end of a business takes some effort. Thanks to Intuit and QuickBooks Online, this otherwise daunting task has been simplified by top accounting software. The most recent updates applied to the accounting site involve time-saving modifications. Whether you’re a fan of the brand or new to the QuickBooks world, you’ll likely benefit from these changes.

Friendlier Usability and Interface

One of the most basic adjustments to the service is the new keyboard shortcut. You can now tap the escape key when you want to close your transaction forms. This will close any expense pages or invoices so that you can view the screen you started with. A small tweak to the money bar adds to the convenience, allowing you to view a clear time frame for the presented data.

Other alterations include visual refinements that simply clean up the look of certain pages. Larger icons, a more prominent help button and subtle color changes improve the visibility of the menus. These seemingly minute details make navigation from task to task easier and more straightforward, which ultimately saves time as well.

Read More

Tags: Bookkeeping Best Practices, small business bookkeeping, accounting software, quickbooks tips

3 Things Your Bookkeeping Services May Know More About In Your Data

Posted by Bill Gerber on Tue, Sep 23, 02014

How well do you know your own business? Think about it.

Read More

Tags: outsourced accounting services, bookkeeping services, accounting services

Part Two: Accounting Tips for TSheets Users of All Levels

Posted by Victoria Horn, TSheets.com on Mon, Sep 22, 02014

Now that you’ve been schooled a bit on TSheets Time Tracking already, you’re good to go for a second semester! The following information are some great insider scoops to the best ways to configure your TSheets account. Don’t worry; we start basic and move on up so feel free to join in at any point!

1. Beginner Level: Configuring Overtime Calculations

Read More

Tags: Accounting Technology, bookkeeping services, accounting software, accounting tips

Subscribe

Direct Capital Top Accounting Blog