Bookkeeping is the practice of organising and updating accounting records and payroll.
For small business owners with limited time and prior experience, bookkeeping in NZ can be a challenge. This is why most small business owners turn to qualified bookkeeping professionals.
If you’re a small business owner in NZ you may be confused on whether traditional bookkeeping or virtual bookkeeping suits your business best.
Let’s have a squiz at both and find out.
What is traditional bookkeeping?
Traditional bookkeeping means hiring one or multiple professional bookkeepers as part of your in-house team.
In this case, the bookkeeper(s) are available at your office premises, physically, during work hours.
You would have to bear the costs of onboarding these individuals, providing them with necessary materials and software, providing salaries and bonuses, granting paid leave and holidays, etc.
You would also have to train them and it would take some time until they’re completely assimilated into the company.
The Changing the world of work 2022 report by Xero reveals that new employees take about four months to get well-acquainted with their jobs and reach full productivity.
Sounds like a bit of a mare? Most kiwi small business owners would agree.
What is virtual bookkeeping?
Virtual bookkeepers are outsourced highly trained and experienced bookkeeping professionals who offer their services online.
They are not part of your in-house team, nor do they require an extended training period. They’re seasoned and ready to get productive right away.
You wouldn’t have to worry about spending money on purchasing office materials or software for them. Most virtual bookkeepers already use the latest tools and software. So that comes free with the service!
Not saying that they never hit the bach, but you wouldn’t have to worry about their paid leave and holidays either. There will be no service disruptions whatsoever.
The verdict: which type of bookkeeping in NZ suits you best?
You’d only have to consider only one factor:
Traditional bookkeeping in NZ requires you to spend money on hiring, training, and maintaining in-house employees. The commitment is much bigger and the risk is much higher.
Think you can handle the jandle? If there was a better solution would you pick that instead?
If you answered yes, then virtual bookkeeping is the way to go. It’s less costly, more flexible, efficient, you get access to seasoned and polished skills with zero commitments. Sweet as!
We’ve actually got an Ebook on why you can’t afford not to outsource your small business accounting functions. This also includes more complicated functions like tax accounting etc. If you drop your email address we will forward it to you.
Virtual bookkeeping is usually preferred by owners with small business accounting needs. Large businesses and certain medium businesses, usually prefer traditional bookkeeping for its benefit of being physically accessible on the premises.
But the cost-efficiency offered by outsourced virtual bookkeeping is increasingly attracting these businesses as well.
AccountsDept offers an excellent selection of virtual bookkeepers
Access a choice selection of highly skilled and experienced virtual bookkeepers with AccountsDept. We are members of the New Zealand Qualified Bookkeepers Association (NZQBA), which means that we follow industry best practices at all times.
Our services are also available at the most reasonable bookkeeping packages pricing in NZ. Choose the one you prefer out of our four bookkeeping packages and let’s take it from there!
