William B. Killough, CPA


Accounting On-Line

Our Innovative Service that Assists Clients who cannot find Good Bookkeepers & Save Up to 40% on Bookkeeping Cost.

Accounting On-Line allows business owners to outsource the bookkeeping function at savings up to 40%.  We use data-entry clerks moderately skilled with QuickBooks® or Peachtree software to keypunch the transactions. The keypunching takes place at our office in the majority of situations.  In some cases a part time clerk is sent on-site to the business location. All work is hosted on a server farm so that real time access is available to the business owner and the local accountant.  Fees range from $250 a week to $985 depending on transactions and workload. A realistic ballpark figure is the payroll cost for the current bookkeeper.  

How we do it…

Entry-level clerks do the keypunch. The workload varies but most firms require one to three hours per day of data entry.  Many of our current “Accounting On-Line” accounts require less than two hours per week. A very well paid bookkeeper then completes the accounting cycle for up to 20 companies in any given month. The bookkeeper spends an average of 2 hours per week working on the high-end task for each firm.

The efficiency of putting low skilled workers on key punch (80% of the job) and one very skilled bookkeeper on the 20% that requires in depth accounting knowledge, allows us to deliver quality management information at a lower cost than doing the work in house. Our profit margin comes from this efficiency.

How we handle the data transactions…

In some cases a part time clerk is sent to the business location.  This is generally the case for larger firms with 1 million or more in sales or a large number of complicated transactions that need to be keyed in daily.

For most firms, we install a scanner and magnetic ink cartridge check printer in each of our clients’ offices and assigns these pieces of office equipment an IP address.  If possible, we prefer to install a full time Internet access line using DSL technology. 

  • Incoming invoices…

When invoices come in from vendors, the receptionist (or the owner’s teenager) will scan the source document.  It will automatically be converted to an email and posted to a secret web page.  That page will be a permanent file cabinet for all invoices from a certain company, (paperless office) that the client can access at any time.  Our accounting office will read the source document and enter the data into the on-line accounting software. The owner will review the source documents at his convenience and email us with any changes. Eventually all invoices can be sent to us by email from the vendors, or we can set up a BILL TO address at our local office for all vendors. These will also be posted on the paperless office web page for future reference.

  • Payments…

An email with the recommended payments will be sent to the business owner.  They will check off (on screen) what bills they want paid and send it back to our local accountant’s office.  We will print the checks on the local printer that we have provided.  In order to reduce labor we will encourage the business owner to allow us to use electronic payments as a cost savings over printed checks.  The owner can write checks at any time, since they will still have access to the .exe file and data on the server farm.  

  • Sales Orders…

24/7 invoicing can be accomplished by setting all order entry on a web page.   This allows an invoice to be printed immediately from the point of sale.  It also allows a copy to automatically be delivered to the point of data entry for the bookkeeping process.   Firms with few invoices could use a form in MS Word that is delivered to the customer and emailed to the point of data entry (our local office).  This would be different in every business, but it could be set up so that a shipping or picking label is created at the point of sale and then the charging process takes place in the local accountant’s office.

  • Receipts…

Checks will be delivered directly to the lock box at the client’s local bank and we will use electronic banking to reconcile the deposits and accounts receivable. If it is a cash business, the receptionist (or the owner’s teenager) will scan the deposit slip daily and it goes to our site automatically.

  • Payroll…

A web page can be created to accept payroll information.  Our computers will process the data immediately and the paychecks printed within 60 minutes at the printer we have installed at the local office.  We will strongly recommend direct deposit.

  • Exceptions to the rules…

As always, we will have exceptions. The exceptions are all scanned and automatically emailed to your accountant’s local office so that you have the source document and any written explanations of the exception. 

Additional time savers…

Using CTI Voice Mail to Email conversion technology we can also provide a series of services to speed up the business cycle.  A voice mailbox is set up to record data, it is automatically converted to an email and that email message goes directly to our office for data entry.   Here are the time savers we have in place now.

My Time & Billing: Allows an attorney to use voice mail to record billing events.  No more billing leakage.

My Invoices: Field sales rep uses voice mail from a cell phone to write orders on the run, no more paper work.

My Time Clock: Hourly staff uses a speed dial number to record time on and off the job. Imports to payroll.

My Expenses: No more yellow receipts to track.  Just hit the speed dial on your cellular and talk your report.

  • Summary of data capture

By using email, voice mail, web pages, electronic banking, and working with vendors to get them on electronic data exchange we have eliminated the need for a data entry clerk on site.    We have created our profit margin for “Accounting On Line” out of the increased efficiency from web based communications, lower paid staff doing data entry, and highly trained and managed staff completing the accounting cycle.

Reporting the business results on-line and in real time to the local business owner provides four major benefits.  

1.       At any time the owner can open a secret web page and know exactly where the business is.  You no longer wait until the end of the month, you can check twice a day if you like. (Our recommendation)

2.       Our local accountant acts as a Guardian Angel and provides constant feed back on where the business is actually making the most money, and how to concentrate on those products and customers.

3.       All source documents can be viewed on the web site, allowing the business owner to have a paperless office system in the bookkeeping department.  No more looking for tax or billing information.

4.   We use ATM like security assuring the owner that no unauthorized person will see his or her financials.

“Accounting On Line” Web Based Reporting Systems

Current Status Reports: At any time a business owner can open a secret web site, type in the ATM like security code and pop up the most current basic data.   Sales, Cash in the bank, Accts Receivable and Payable all pull instantly from the server farm by ‘web robots’ and post for your review.   We recommend that you look at this dashboard twice a day to see how you’re doing
80/20 Reports: Our accountant will be reviewing your progress over the course of the year. You will get constant feed back on where you are spending too much money.  More importantly, the accountant will look for the 20% of your customers making 80% of your profit and what services are making you the most money. This type of feedback will help you improve cash flow 20% to 100% in the first year. 
My Ledger: Tired of vendors calling to see if you received an invoice, or asking when you will pay it? This information is now ported to a secret web site and vendors can self service their own record (only.) The same process works for customers when they want to review invoices.  We tell them to email us if they have a question or problem, saving      phone calls and irritation.
My Inventory: Give your business a competitive advantage. Put your inventory on line and let customers check for stock before they go elsewhere or call on the phone and tie up staff for 20 minutes.  This is great for industrial or commercial suppliers.  It all ties to QuickBooks® and can be posted to an order entry system so customers can place orders on line and drive down to pick the item up from the will-call dock.  (Extra cost for this)  
My Financials: The next time you go to the bank and are asked to produce your past tax records or financial statements, just say,”Key in this private code.” A secret web page pops up that allows you to provide the data on the spot.  No more searching the house or making calls all over town to round up returns and reports.  You are approved in record time and on your way.   You also scan in tax-deductible items and we save them for year-end.
My Payroll: (Coming this summer) At last your employees can check on their own pay records (only) on a secret web site. They can change deductions, beneficiaries and review benefits.  They can make changes in their own Keogh plans, track vacation schedules and all at their own convenience 24 hrs a day. You no longer have to stop what you’re doing and solve simple requests such as adding someone to the health insurance plan

The Biggest Benefit of “Accounting On-Line”

You put your time where it counts  

You do not make or save money, doing things you are not great at. 

Spend your time building relationships with customers & staff.

Spend your time learning ways to add value to your product or service.

Let our accountant tell you where your 20% is that generates 80% of your success.  Then focus on that 20% and start building real wealth.

  ©Copyright 2000-2006 William B. Killough, CPA


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