Bookkeeping as a Service: A Game-Changer for Small Business Owners

Running a small business is challenging, especially when managing finances. Many entrepreneurs are overwhelmed by their businesses’ day-to-day operations, leaving little time to handle essential financial tasks like bookkeeping. This is where Bookkeeping as a Service steps in, offering a simple, streamlined solution to keep your financial records in check while you focus on what you do best—growing your business.

What is Bookkeeping as a Service?

Bookkeeping as a Service (BaaS) is an outsourced bookkeeping solution where a third-party provider, like Westport Financial, is responsible for recording, organizing, and managing your business’s financial transactions. This service relieves business owners from the time-consuming and often complex tasks of bookkeeping, ensuring accurate financial records and compliance with tax regulations. With BaaS, small businesses can access professional bookkeeping without hiring in-house staff, reducing costs and improving efficiency.

Learn more in our previous article, “Bookkeeping Outsourcing.”

What is Full-Service Bookkeeping?

Full-service bookkeeping goes beyond basic data entry and reconciliation. It involves managing every aspect of your financial record-keeping, including accounts payable and receivable, payroll processing, financial reporting, and tax preparation. Full-service bookkeepers also provide monthly financial statements, ensuring you understand your company’s financial health clearly. This comprehensive approach ensures that no financial detail is overlooked and your business stays on track for long-term growth.

At Westport Financial, our full-service bookkeeping is designed to give small businesses the peace of mind of knowing their financial records are accurate, organized, and compliant. We care for all the details, so you don’t have to.

What are Virtual Bookkeepers?

Virtual bookkeepers are professionals who provide bookkeeping services remotely. Leveraging cloud-based software, they can manage your books from anywhere, providing the same high level of service as an on-site bookkeeper. Virtual bookkeepers work as an extension of your team without the overhead costs of hiring an in-house employee. They communicate through email, video calls, and shared online platforms, making staying on top of your finances more straightforward, even if you’re always on the go.

Westport Financial’s virtual bookkeepers are highly skilled professionals who understand the unique needs of small businesses. We match you with a dedicated bookkeeper who becomes an integral part of your team, ensuring personalized attention and consistent service.

What Software Do Virtual Bookkeepers Use?

Virtual bookkeepers typically use various cloud-based accounting software to manage financial records efficiently and securely. Popular software includes:

• QuickBooks Online: One of the most widely used platforms, offering real-time access to financial data, customizable reports, and integration with numerous third-party apps.
• Xero: Known for its user-friendly interface, Xero provides real-time data, invoicing, and expense management, making it ideal for small businesses.
• FreshBooks: A top choice for service-based businesses, FreshBooks makes it easy to track time, manage expenses, and automate invoicing.
• Wave: A free, cloud-based option for small businesses with simple bookkeeping needs.
• Bill.com: A solution for automating accounts payable and receivable, offering seamless integration with QuickBooks and Xero.

At Westport Financial, our virtual bookkeepers are proficient in these and other platforms, ensuring that your financial data is always accessible, secure, and up-to-date. We tailor our software to fit your business needs, providing a seamless experience.

What Are Monthly Bookkeeping Services?

Monthly bookkeeping services ensure your business’s financial health is monitored and maintained regularly. This service includes consistently tracking income and expenses, monthly bank and credit card account reconciliations, and timely categorizing transactions. Maintaining accurate monthly financial records gives you a clear picture of your business’s economic performance, allowing for informed decision-making and better cash flow management.

At Westport Financial, our monthly bookkeeping services go beyond just tracking transactions. We provide detailed monthly financial reports, including profit and loss statements, balance sheets, and cash flow statements. So you can stay informed on the key metrics that drive your business. This proactive approach allows us to identify potential financial issues early, allowing you to address them before they become more significant problems.

Here are some key benefits of monthly bookkeeping services:

• Accurate Financial Reports: Monthly financial reports clearly understand your business’s financial standing, helping you make informed decisions and plan for future growth.
• Cash Flow Management: By staying on top of your monthly finances, you’ll have better visibility into your cash flow, allowing for better planning and avoiding shortfalls.
• Tax-Ready Financials: With consistent monthly bookkeeping, tax time becomes a breeze. Your books will be organized and ready to hand over to your accountant. Reducing the stress and time spent preparing for tax season.
• Timely Reconciliation: Monthly reconciliation of your bank accounts and credit card statements ensures that all transactions are accurately recorded and categorized, preventing surprises or discrepancies.

Westport Financial’s monthly bookkeeping services are designed to give you peace of mind, knowing that your financial records are always accurate and up to date. With our support, you can focus on growing your business while we care for the details.

Read our previous article, “Bookkeeping for Service Companies.”

Bookkeeper vs. Accountant: What’s the Difference?

While bookkeepers and accountants play crucial roles in managing a business’s finances, their responsibilities differ critically. Understanding the distinction between the two can help you determine which service your business needs—or whether you need both.

Bookkeeper: The Day-to-Day Record Keeper

A bookkeeper is responsible for maintaining a business’s daily financial records. This includes tracking income and expenses, processing payroll, managing invoices, and reconciling accounts. Essentially, bookkeepers ensure that all financial transactions are accurately recorded and organized. Their work provides a foundation for financial reporting and tax preparation, consistently updating the books to reflect real-time financial activity.

Here are some typical tasks a bookkeeper handles:

• Recording financial transactions
• Managing accounts payable and receivable
• Reconciling bank and credit card statements
• Processing payroll
• Preparing financial reports (e.g., profit and loss statements, balance sheets)

Bookkeepers often work closely with accountants, providing them with up-to-date financial data to analyze a company’s financial health and make strategic recommendations.

Accountant: The Financial Analyst

An accountant, on the other hand, focuses on interpreting, analyzing, and summarizing the financial data provided by bookkeepers. While bookkeepers concentrate on recording and organizing daily transactions. Accountants take a broader view, helping businesses with economic analysis, tax strategy, and compliance with regulations. Accountants often prepare tax returns, perform audits, and offer guidance on complex financial decisions.

Typical tasks performed by an accountant include:

• Preparing and filing tax returns
• Conducting audits and ensuring compliance with financial regulations
• Providing financial analysis and strategy
• Offering advice on budgeting and financial forecasting
• Ensuring that financial records align with legal standards, such as GAAP (Generally Accepted Accounting Principles)

Which Does Your Business Need?

In most cases, small businesses benefit from both services. Bookkeepers provide the accurate, up-to-date financial data that accountants need to analyze and make strategic recommendations. Bookkeepers handle the ongoing, day-to-day financial tasks. Accountants help you understand your business’s finances and offer guidance on improving performance and efficiency.

At Westport Financial, we offer both bookkeeping and CFO services, allowing us to provide comprehensive financial support tailored to your business’s needs. Whether you need help keeping your books organized or need expert financial advice for growth and compliance, we’ve got you covered.

By combining the strengths of bookkeepers and accountants, we ensure that your business is financially sound at every level—from the details of your daily transactions to your long-term financial strategy.

Westport Bookkeeping as a Service

Bookkeeping and financial management are essential to the success of any small business. Whether you need ongoing support with daily transactions, monthly financial reporting, or expert advice on tax strategy and financial planning, the proper bookkeeping and accounting services can make all the difference. At Westport Financial, we offer a full suite of services—from Bookkeeping as a Service and virtual bookkeeping to monthly bookkeeping services and CFO support—tailored to help your business thrive. 

With our experienced team handling your financial needs, you’ll gain peace of mind, more precise insights into your business’s performance, and the freedom to focus on what you do best. 

Reach out to us today to learn how we can support your business’s growth and financial success.