Virtual Accounting At Krowne CPAS
Every business deals with accounting, whether it's via payroll, bookkeeping or tax preparation. The term accountant is very broad. You may have a payroll accountant, you may have an accounts payable accountant, you may have a tax preparation accountant, or you may have an accountant that doesn't do any taxes at all.
Small business accounting has evolved these days. Typically, in the past, small businesses employed an accountant as a staff member or as an independent contractor that was outsourced. The way things are changing is due to technology. Enter Virtual Accounting Services from Krowne CPAs. Virtual Accounting is the technology that allows an individual on the outside of a small business to interact directly with the businesses' accounting and not be present at their location. The accounting professional can interact on a daily, weekly, hourly, or monthly basis. It's like having staff without actually having staff.
"The obvious impact is that less staff translates to less overhead," says Art Leigh, Virtual Accounting Specialist at Krowne CPAs. " Additionally, a company that utilizes a traditional bookkeeper greatly benefits from Virtual Accounting Services by now having that same work performed within a tax and accounting firm that actively reviews the financials through the lens of tax and advises our clients accordingly.."
Virtual Accounting packages from Krowne CPAs are rooted in cloud-based, always available, state-of-the-art accounting platforms that not only streamline day to day processes but also help build in audit protection. Anyone who is given permission can log in from any location and view transactions.
There are three pillars of why Virtual Accounting has so much value for SMBs. The first is that typically the owner is the one managing the books and the back office work.
"Instead, the entrepreneur needs to be out front growing their business and driving revenue – not in the back spending time on accounting," says Art. "Our services immediately alleviate that requirement and provides a massive time benefit."
Secondarily, business owners are not typically accountants, so the quality of service that they're getting with Virtual Accounting is at a level that is significantly higher than what they can do on their own.
The third reason would be that when the owner hires an employee to do the accounting, they have to manage the employee, deal with the associated overhead costs and still have the financials reviewed by a CPA (for tax purposes). The flat fee charged for Virtual Accounting is much simpler as well far more cost-effective than an internal accounting employee.
The General Ledger accounting platform is at the core of the service and resides in the cloud. The cloud simply means that it doesn't exist natively at your business or on your network. In addition, there are add-ons, such as document management, that allows the transfer of documents to and from the organization, payroll, timekeeping, accounts payable and many more.
How much does the service cost?
For a typical SMB, the packages are based on monthly transaction levels. They start from $500 plus platform costs. It truly depends on how much transactional volume the business is doing. "We offer a package that significantly improves the efficiency of the business as well as the communication stream," says Andrew Krowne, Staff Accountant and Director of Virtual Accounting Services at Krowne CPA. "The passing of documents is a challenge. Our package allows us to automatically gather and store bank statements, credit card statements, key invoices – things that people would put in the proverbial shoebox. We can store and gather the data digitally."
The General Ledger accounting platform is also tied to the client's bank account through a secure connection called a "feed". As the business is writing checks, doing credit card transactions or making purchases, the transactions are automatically updated so the accounting team, can see what is happening very near to real-time and respond appropriately.
"It's not just data stored remotely in the cloud," says Art. "It's also operational efficiency that allows virtual accounting to succeed. Every business has individualized needs, which Virtual Accounting can address."
For more information on Virtual Accounting packages from Krowne CPA call them at (818) 831-6075 or log onto www.krownecpas.com/vas