Initially, accounting was traditionally processed manually and now in a rapidly changing environment companies have shifted their entire operations online. But there are still a large number of small to medium-sized businesses that rely on the traditional method of bookkeeping.
Now that computers became popular and software became cheaper, accounting functions moved to the online platform, where the concepts remained the same but the way things worked changed.
You can do any kind of business like designing a logo, selling goods online or running a restaurant no matter what kind of business you do, you need to keep an eye on your finances and Good bookkeeping is required to run a business.
A few years ago, there was only one option – Either you need to hire a freelance bookkeeper or a traditional bookkeeping firm. But now with the advent of outsourced bookkeeping services like Mindspace, you will get different options.
Outsourcing Bookkeeping Services
Outsourcing bookkeeping patterns have several advantages such as synchronized accounting, making global delivery standard outsourcing at a lower cost and additional leverage.
The ‘book up’ model is used in traditional bookkeeping and is no different from the outsourcing model. The change was never readily accepted. But Mindspace Outsource Services changed the concept of online bookkeeping services to many of its clients with its flexible approach and offered additional bookkeeping solutions that customers were not well aware of.
Generally, traditional Bookkeeping is used by an in-house bookkeeper. They employ the services of a bookkeeping firm or freelancer bookkeeper to meet their bookkeeping requirements. On the other hand, Mindspace Outsourcing Services has an outsourcing model that provides reliable and accurate remote bookkeeping services to clients.
In the traditional bookkeeping format, bookkeeping may be wrong sometimes. All tasks like writing checks, maintaining inventory, and taking care of payroll and tax preparations are managed by bookkeepers who are required to keep those books accurate.
Many times entries are also done at random, so there is also a need to review once or twice a year so that errors can be minimized and consequently wrong business decisions can cause serious harm.
Mindspace Outsourcing Services, with the help of its qualified bookkeepers and updated processes, ensures that all deficiencies related to bookkeeping are taken care of and that clients do not have to worry about their company’s financial health.
Here is some difference between traditional and online bookkeeping like speed, accuracy, costs and backup.
The difference of only one speed is most obvious because now in this phase of bookkeeping, cloud bookkeeping speed is its biggest plus point. Now new cloud-based accounting/ bookkeeping software is coming which can be accessed from anywhere. In computerized accounting, information can be accessed within a few minutes.
Online bookkeeping has greatly increased the accuracy of calculations compared to traditional bookkeeping. Even if errors occur, it does not take long to find and fix them. This problem is eliminated with online accounting software.
Now computers have also become very popular and accounting software has also become cheaper and many small and mid-size businesses/ firms use online bookkeeping software. This software is easy to use and finding experienced employees to run them is also not a hindrance.
There is always the risk of losing data when using manual bookkeeping and that important work may have to be redone if it is damaged or destroyed. So copies of original work can be made in online bookkeeping software and stored in cloud storage software like Google Docs or Dropbox. It is neither too expensive nor does it take much time.
Mindspace provides bookkeeping, payroll processing and tax preparation services to corporate clients in the UK, USA, Australia, and Canada. Our team works with CPA accounting firms in the USA, UK, Australia, and Canada to provide these services to our clients as outsourcing partners.