How to Get the Most Out of Your Online Accounting Firm

How to Get the Most Out of Your Online Accounting Firm

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Start with Robust Onboarding

Efficient online accounting services don’t take shape overnight. We usually describe it the same way as starting a new job—it starts with a 90-day probationary period. The difference is that an employee spends 90 days learning the ropes, whereas an accounting team uses the time to set you up for success. 

Within the first 90 days of your partnership, your online accounting firm sets up your account. They do this by:

  • Building out your accounting team, including determining key roles such as CFO, controllers, and accountants. 

  • Determining mission-critical services. You can help with this by providing access to key systems and documentation.

When your company and accounting services partner work together to establish your account, you lay the groundwork for a fruitful and productive relationship.

 

Do Your Part to Keep Your Books Organized

It’s peak busy season, and between planning with your team and dealing with everyday activities, you haven’t been keeping up with invoices. Uh-oh. Better call your accounting partner … right? 

Yes, but also no. Just because your partner streamlines your accounting doesn’t mean they are magicians. Think about what you want from the partnership—housekeeping or a strategic partner? The more disorganized your books are, the more time your partner will spend mopping up the mess. This means less time dedicated to providing strategic guidance. 

If maintaining the level of organization necessary for pro services doesn’t seem doable, online accounting might not be right for your business. Instead, you may want to work with an in-house bookkeeper for basic organization or even use bookkeeping software like QuickBooks.

 

Pursue Clear Goals

One of the most significant reasons companies partner with online accounting services is because they want a growth partner, whether it's for a little while or the long haul. This is especially true of small, fledgling businesses trying to find their footing. 

An accounting team can flex to help you pursue your goals. Expert providers like Ignite Spot serve you in several ways:

 

Provide guidance on what you need.

Turn to your team for financial advice, assistance with local requirements, or planning help to scale for growth and eventually sell.

 

Work together to establish realistic goals.

What do you want your cash position to look like? Collaborate to develop revenue and profit goals.

 

Follow a reasonable budget.

Need to straighten out your business’s spending habits? Work with an accountant to develop and adhere to a budget.

 

Trust Their Expertise to Manage Performance

When you partner with online accounting services, they measure your full performance—including successes and failures. Every month, your accounting team will dig into key performance indicators (KPIs) and reports to stay on pace to achieve your goals. 

 

Bank Reconciliations

Take advantage of accounting software to get your books in order. Online accounting services know how to get the most from key systems and can easily plug your transactions into QuickBooks to better manage your cash position.

 

Accounts Receivable

A little bit of green makes the world go around. Your partner team manages invoicing and customer interactions, ensuring you get paid on time.

 

Accounts Payable

You have financial obligations, whether that means paying rent, transportation, or logistics expenses. An online accounting services firm lifts this burden by organizing and recording bills while also processing payments to vendors.

 

Profitability

So how much are you really making? Your accounting team takes the lead in determining profitability, honing in on total revenue, gross profit margin, and operating profit margin.

  • Total revenue: How much does your business receive from products or services before subtracting expenses?

  • Gross profit margin: How much do you get to keep? Examine the gross profit compared to total revenue.

  • Operating margin: What is your company’s revenue when you factor in operating and non-operating expenses?

 

Cash Flow

Online accounting services ensure that you spend your money correctly and manage what’s left so you can both save and grow. Top accountants calculate cash flow in several ways:

  • Free cash flow: Free cash flow is what’s left after paying operating expenses and capital expenditures. Your accounting team will work to maximize this, giving you more to work with to pay down debt and pursue growth opportunities.

  • Net cash flow: Online accountants measure your net cash flowmeaning the total inflow of cash over time from sales and loans minus total outflow over the same period—to determine how your company’s spending compares with its earnings.

  • Cash on hand: Trust your partner to help you manage your cash on hand—meaning what’s left after all regular expenses have been considered—and save for a rainy day.

Make Online Accounting Services Work for You

It’s one thing to know you need online accounting services to lend a hand, but it’s another to understand how to leverage that relationship. From defining and pursuing your goals to leaning on robust accounting practices, an expert partner such as Ignite Spot could help your company develop and thrive financially. 

Think online accounting services are the right fit for your business? Download our outsourced services e-book to learn when in-house and outsourced accounting are ideal.

In-house or Outsourced ebook

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