The corona virus outbreak has hit every corner of the world. There are more than 18,000 active cases in Australia. Several parts of the country are still under lockdown. With businesses going down, it’s high time entrepreneurs find ways to cut down operating costs as much as possible. If you are facing a similar situation, you should think of how to cut down the costs without firing a whole lot of people. And one of the best things you can do is hand over the accounting job to an online accountant.
Small businesses usually don’t have a permanent accounting team. Entrepreneurs prefer to hire accountants on an hourly or per project basis. But most of them may not be available due to the lockdown. Most importantly, it isn’t still safe to hire accountants who would come to your office and do the job. In such a scenario, it’s best to hire an online accountant who would send soft copies of your company’s documents via email. Here are a few reasons why I think hiring an online accountant during Covid-19 is beneficial.
1. Centralized documents
If you have left your crucial accounting paperwork in your office, how will you access them during the lockdown? Moreover, what if you lose one of the essential documents like last year’s balance sheet? This isn’t something you should take lightly. It’s always best to upload all accounting documents in the cloud so that you can access them anytime, anywhere. And that’s precisely what online accountants offer.
They will ask for your annual accounting paperwork online. You may scan them and send them via email or upload them on their cloud. Once they prepare your books of accounts, they would upload the same on the cloud also. This way you don’t need to hunt for a document in your office or at home. Just login with your credentials on the accounting application and find the paperwork you need.
2. Foreign market interpretation
Even small businesses these days are making the most of dropshipping to ship their products to other countries. But if you are new to this type of business, then you should know about the international market, how the taxes work, what you need to do to maintain your supply chain management, and make a budget of annual sales.
For example, Export Market Development Grants in Australia reimburses promotional expenses when entrepreneurs export their products to increase international sales. That means you can save significantly on marketing if you aim to sell your products in other countries. But international sales involve additional shipping charges also. Your online accountant can prepare an entire list of the costs that you may need to bear.
This helps to set up a budget for every sales campaign. Apart from sales campaigns, your online accountant can provide detailed reports on how much you spend annually on marketing your brand and products. You can use that information to increase or decrease your budget on marketing, depending on their average ROI.
3. Faster accounting services
You don’t have to rely on a single person to prepare your books of accounts. What if that accountant meets an accident or falls ill just before preparing your tax returns? These are unforeseen events that may hamper your business. Instead of taking that risk, you can hire an online accountant who will do the same things without having to come to your office. This not only distributes your work to an entire team of accountants but also reduces the risks of Covid-19 contamination in your office.
With tons of invoices every day, you may lose track of the paperwork after a few days. But online accountants use accounting software applications like Xero to automate every move. Once they establish a connection between the software and your online store, they can take care of invoices, purchase orders, and sales copies. This reduces the overall time of preparing these documents as everything runs on an automated system.
I, for one, is feeling relieved now that I have an online accountant. All I need to do is send my daily reports and the accountant prepares the books by the end of the day. He submits weekly and monthly reports to help me assess my profits and losses during this pandemic.
Infinity22 is an eCommerce focused accounting and advisory firm helping businesses get the most out of their