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How Does Online Bookkeeping Work?

Small business owners around the world are migrating to cloud-based bookkeeping software to keep their financial records and reports organized and accessible. Even with the help of bookkeeping software, it takes financial expertise to put the data into context and use it to make informed decisions. To save time, some choose to partner with an online bookkeeper. 

In this blog post, we will discuss how online bookkeeping works and how it is crucial to business growth!

Going Digital

Historically, small business owners would partner with a local accounting firm, hire an in-house bookkeeper, or do the bookkeeping themselves with a calculator, pencil, and paper. 

With online bookkeeping, an accountant works with the small business owner remotely by utilizing a cloud-based bookkeeping software such as Xero or QuickBooks Online, which connects with the business owner’s bank account. 

Income and expenses flow digitally from the bank account to the bookkeeping software, so every transaction can be accounted for and properly categorized. The bookkeeper will have view-only access to the business owner’s bank account, to reconcile business transactions during the monthly close process. If the bank does not allow view only access, the business owner provides a monthly bank statement to the bookkeeper so that the balances can be tied out and the financial statements can be finalized. 

Xendoo offers business owners 24/7 access to their financial statements and tax returns in their customer portal. They can schedule meetings with their online bookkeeper to discuss financial trends and new opportunities for growth at their convenience. 

How Do Online Bookkeepers Access Physical Documents? 

What if the business owner needs to account for physical documents, like receipts and invoices? Xero and QuickBooks Online offer mobile apps that have built-in receipt scanners, so business owners can link physical documents to their records without missing a beat.     

Other cloud-based services integrate with online bookkeeping software, enabling business owners to manage multiple areas of business all in one place. For example, Biller Genie automates the Accounts Receivable process, while Gusto offers payroll processing and support, and A2X consolidates sales data from multiple eCommerce sales channels into a user-friendly dashboard – all of which connect with Xero and QuickBooks Online. The business owner and their online bookkeeper can access all of this information from anywhere in the world, all in one place. 

Is Online Bookkeeping Legit? 

Yes! Every reputable online bookkeeping service consists of a team of real people who care about the financial success of small business owners, and are readily available to answer questions. Some business owners opt for US-based providers, while others use out-of-country bookkeepers. 

At Xendoo, each team member works under one roof in our Fort Lauderdale, Florida office. Customers can contact their expert bookkeeper by text, phone call, or email, all throughout the year. 

Why is Online Bookkeeping Important for Small Business Growth?

Weekly bookkeeping is crucial to business success, but is not always easy for small business owners to do on their own. An online bookkeeper takes that task off the business owner’s plate, providing 24/7 access to up-to-date financial information. A skilled accountant provides the guidance and insight needed to stay tax-compliant and make informed decisions, while maximizing tax savings. 

24/7 Financial Visibility

Accurate, up-to-date bookkeeping delivers the financial visibility that guides decision-making. By partnering with an online bookkeeper, business owners have 24/7 access to crucial financial data in their cloud-based bookkeeping software. This enables them to make data-backed decisions for growth, whether on the road or in the office. 

Tax-Ready Financials

With all the responsibilities that business owners have to juggle, bookkeeping may sometimes fall behind, leaving them scrambling once tax season arrives. Important deductions could be missed in the rush to meet the tax filing deadlines. By handing off the bookkeeping to the experts at Xendoo, business owners can enjoy tax-ready financials and maximize their return with minimal effort. 

Experts with Niche Experience 

Business owners need a financial partner who understands the complexities of their industry, to ensure that their financials are accurate, and meet the standards of their field. 

The good news is that Xendoo offers specialized experience in niches such as eCommerce bookkeeping and franchise bookkeeping! By working with an online bookkeeping service, business owners can make informed decisions based on the advice of industry experts. 

Your Online Bookkeeping Team 

Xendoo is an online bookkeeping, accounting, and tax solution, powered by a team of real bookkeepers, accountants, and CPAs. By partnering with Xendoo, business owners can receive insightful advice from a financial expert, and put their time and energy toward growing their business, and enjoy financial peace of mind! 

Give us a call today, or click here to schedule a free consultation.

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