One of the biggest myths about cloud accounting services is that they offer no fraud protection. You may even have heard some claims that outsourcing cloud accounting services puts your company in greater jeopardy of fraud than it would normally be exposed to. The truth is, there’s far more fraud protection offered by third party cloud bookkeeping firms than any protection you could find by hiring your very own onsite accountant. Here are just a few ways that cloud accounting offers protection against fraud.

· Third party accounting services enforce systems of checks and balances that drastically cut back on the opportunity for fraudulent activity. The vast majority also perform thorough background checks of their bookkeepers, with extra attention paid to past instances of fraud with previous employers.

· Elimination of paperwork. Going paperless has a far more beneficial impact on your company’s financial security than you might think, including more efficient documentation tracking and the elimination of lost invoices and bills, which could put your company at risk for information theft.

· Fraud protection is increased by the separation of duties, which essentially ensures that no one person will be responsible for the completion of a task. Separation of duties is an invaluable benefit of outsourced cloud accounting services, and one that many small business owners simply can’t afford without hiring two to three employees.

· Frequently scheduled audits are a must to safeguard against fraud, but many small companies simply can’t afford the time or manpower to perform these on a regular basis. Outsourced accounting services, on the other hand, use automated systems to run audits frequently, more accurately, and faster than would otherwise be possible.

If worry over fraud risk is preventing you from hiring a third party bookkeeping firm, you may be guilty of buying into a myth without verifying the facts first. To learn about some of the security procedures offered by cloud accounting services, visit AccountingDepartment.com.

Are you considering hiring a virtual bookkeeping service, but haven’t yet taken the plunge because you’re used to doing things the “traditional” way by keeping all of your accounting practices in-house? Are you worried that handing over control of your company’s accounting will leave you open to losing vital information that could cost you dearly? Don’t think that you have to dive headfirst into it. It’s entirely possible – and even strongly recommended – to ease your way into working with an online bookkeeping firm by testing out their services gradually. Here are a few suggestions on how to do that.

· If your company’s needs go well above and beyond simple bookkeeping, consider starting slow and small. Hire a virtual bookkeeping firm to handle a small portion of your accounting and keep a close watch on the numbers to ensure everything is done accurately.

· Once you’ve grown comfortable with the online bookkeeping company’s ability to perform rudimentary accounting tasks, discuss branching out services to include accounts receivable and accounts payable duties. Most third party bookkeeping firms will offer graduated levels of service.

· Compare the fees charged by the bookkeeping firm against the costs that you would have incurred paying an hourly wage to an on-site employee, but don’t just look at earnings. Also consider your out of pocket expenses for healthcare benefits, time off, and potential lost productivity when an on-site employee is out sick.

· Move beyond the simple virtual bookkeeping services offered and investigate the performance of the third party when it comes to the creation of financial reports, as well as the more complex and comprehensive duties of controller services.

Trust is something that’s tough to come by these days, and it’s in every business owner’s best interest – as well as that of his or her employees – to take pains to ensure that trust is duly earned. If you’re not ready to take the plunge with a virtual bookkeeping firm, consider it a sign of your prudence where the lifeblood of your enterprise is concerned. Taking the above mentioned baby steps is sometimes the best way to guarantee that the outsourced firm you’re working with will be able to deliver security and quality performance. To learn more, visit AccountingDepartment.com.

The image of the formerly well-to-do business owner left bankrupt by poor financial decisions is one we’re all familiar with. But a lack of business savvy isn’t the only way to destroy a company from the inside. There’s also the common mistake that many small business owners make of letting someone else – like a hired bookkeeper or accountant – handle all of their finances because they simply don’t have an understanding of basic accounting principles. If this sounds like you, it’s entirely possible that you could drive your business into the ground without even realizing you’re doing it. Making the decision to outsource accounting services can help prevent that, but only if you seek the services of a firm that offers more than simple bookkeeping.

You’ll also need to find a company that offers the following.

· Analysis of financial trends.

· Forecasting.

· Budgeting.

· Profitability analyses.

· General guidance and consultations.

But finding a firm that offers all of the above doesn’t let you off the hook for understanding basic accounting principles. Putting important money matters into the hands of another person and letting them make decisions for you puts you at risk for falling victim to all sorts of undesirable fates, not the least of which is embezzlement.

Don’t wait until your business is in a nose dive that you can’t recover from before you seek accounting advice. Likewise, don’t expect to be able to operate a successful venture without learning some of the basics of accounting yourself. The smartest and most successful entrepreneurs know the nuts and bolts of their business from the inside out – including important accounting details. Before you outsource accounting services to a third party, be sure that they offer a comprehensive service that’ll not only balance the books, but will offer you the necessary tools and advice to grow your company.

If you’re not sure you understand the difference between a bookkeeper and an accountant, don’t feel stupid. The fact is, many bookkeepers and accountants don’t understand the difference either. Both are educated professionals that deal in business finance and that are well schooled in accounting principles, but each does a uniquely different job. Sometimes, the line between those duties is blurred and highly functional bookkeepers may perform duties more typically ascribed to accountants.

Depending on the size of your company, you may only need a bookkeeper. The good news is that working with an outsourced accounting firm, you can have access to one or both, and you can add or eliminate services as dictated by your company’s specific needs. Here’s a quick primer that will help you determine the differences between a bookkeeper and an accountant, and how to know which of the two your company will need.

Bookkeepers…

· Manage the company ledger and prepare monthly financial statements.

· Perform accounts payable duties by organizing and paying for bills and expenses.

· Perform accounts receivable duties by collecting monies owed through invoicing and the tracking of past due accounts.

· Reconcile bank and company credit card statements.

Accountants…

· Oversee the work performed by bookkeepers.

· Use a keen understanding of accounting principles to interpret monthly financial statements that have been prepared by the bookkeeper.

· Prepare reports to monitor the financial health of a business.

· Offer their expertise and advice to business owners and chief decision makers about the company’s financial health and tax planning.

Once you’ve determined what level of accounting outsourcing you need for your business, you’re ready to move on to the next level. Visit AccountingDepartment.com to review the seven-step startup process to getting your own personal remote bookkeeper or accountant.

IFRS stands for International Financial Reporting Standards and is essentially a guideline for doing business with countries throughout the world. Just like GAAP (Generally Accepted Accounting Principles) in the United States, IFRS lays out a series of principles and accounting standards – the only difference is that they aren’t enforced, and are merely suggestions for best practices. If that’s the case, why should you give a hoot about International Financial Reporting Standards, and why should you concern yourself with seeking a firm that’s versed in IFRS when you outsource accounting services? The reasons are aplenty.

Although it hasn’t happened yet, GAAP is in the process of being phased out in the United States. Although this process is a long and laborious one, when it eventually happens your company will be required to be in compliance with IFRS accounting standards.

If this isn’t enough to sell you on the importance of finding an accounting firm that knows how to adhere to IFRS accounting standards, it’s wise to consider the potential benefits of being ahead of the game, especially when it comes to your desire to grow your company to possibly do business in other countries. Consider the following.

- Adhering to IFRS makes your company much more attractive to foreign investors. At present time, if you’re not adhering to IFRS it makes it almost impossible for interested parties overseas to determine your company’s financial health, which can help them make decisions about whether or not to invest in you.

- IFRS adoption gives you a leg up if you want to expand your company to other countries. While this may be a far off notion for some small businesses, IFRS compliance can put you in the unique position of being able to jump at opportunities that might arise with no warning – like the chance to open up a satellite office in Paris, where trips to and fro will be a fully tax deductible expense. Tres bon, oui?

When you outsource accounting services to AccountingDepartment.com, you immediately gain access to experts who are not only versed in GAAP, but also in IFRS. All necessary accounting software and training is administered by AccountingDepartment.com, and you’ll even be provided with a scanner for use in emailing documents it would otherwise take days to mail. To find out more, visit AccountingDepartment.com today and request a consultation.