Wondering how to collaborate with a bookkeeper or accountant without meeting in person? You're not alone. Many online business owners initially question how virtual bookkeeping works.
In the past, tax time meant gathering piles of paperwork to hand over to your accountant. But what happens when everything is digital? How do you track digital receipts, income, and expenses? Without proper documentation, you risk issues during audits.
Today, everything is online and instantaneous. Payments might come through PayPal or directly from your business bank account. However, what appears in your account isn't your total earnings—it's your earnings minus deductions.
Managing Digital Finances
Tracking various income sources is crucial. If you can't explain where your money comes from, even a gift could be considered business income by the government.
This is where specialized bookkeeping services like ours come in. We love helping online businesses organize their finances, much like solving a puzzle where every system is unique.
Embrace Automation
The beauty of digital bookkeeping is automation. We can set up systems that integrate seamlessly, allowing you to handle much of the work with simple clicks and scans. No more paper piles or confusion about your financial standing.
Understanding Your Sales Process
For online businesses—whether offering coaching, digital products, or ecommerce—there's a three-step income flow:
- Sales are processed through platforms like Shopify, Kajabi, or WooCommerce.
- Payments are handled by processors such as Stripe, Square, or PayPal.
- Funds are transferred to your business bank account.
Tracking these steps ensures accurate sales records. Remember, fees are deducted before funds reach your account, and these need to be tracked too. Robust software like Infusionsoft can help with accurate reporting.
Currency and Exchange Rates
For Canadian businesses dealing in US dollars, currency conversion is crucial. Regularly converting at the applicable exchange rate prevents tax discrepancies and potential overpayments.
Choosing the Right Accounting Software
All these elements come together with the right accounting software. It provides insights into your business's strengths and areas for improvement. Having a system is essential.
A Secret to Success
You don't need to pay someone for bookkeeping. With initial setup help, you can manage it yourself. Once set up, your accountant or bookkeeper can offer ongoing support and advice.
Which Statement Resonates With You?
- "I'm overwhelmed starting my new business and have more time than money." (Our Bookkeepers Spreadsheet is ideal for you.)
- "I'm stressed about my current financial state and need a solid system before growth." (Our Numbers Made Easy package is perfect for you.)
- "I'm ready to outsource bookkeeping to focus on scaling my business." (Our SCALE package suits you best.)
Working with us virtually is simple. Snap a picture, forward an email, and input it into your accounting software. Easy, right?
Interested in the software we recommend? Check out our blog on choosing the right tools.
Need assistance? We're here to help. Reach out to us today!
