Running a business is an expensive affair. If you want to reduce the operational costs of your business without relinquishing any benefits of an actual office space, then a virtual office is the best option. Before going for a virtual office, however, make sure you have a proper system in place for managing your financial accounts and financial statements. One good idea would be to use accounting services and could accounting tools like Xero accounting software for keeping track of your expenses and income. If you are still not sure whether using a virtual office would be a good idea, have a look at the following five reasons.
Reduced operating costs
Running a business involves a lot of operational costs. Transport, office equipment, rental fees, wages, and several other costs can be controlled with a virtual office. Not having a physical workspace would mean that you can completely reduce transport costs as well. Furthermore, with a virtual office, you will have lesser overhead with no lease or rentals and you can avail only specific services whenever required.
Using Xero accounting software will be an added advantage here as it is fairly inexpensive, can be accessed by any employee from anywhere and you won’t have to spend heavily to avail the accounting services of professionals as it is easy to use.
Virtual offices are completely based on the performance of the employees rather than the amount of time they spend at office. The employees have to be responsible for their own work and will have to formulate their own schedule according the timings suitable to them. This will increase productivity as employees are likely to be more at ease with their own set timings and will know that they will judged only on their performance.
Employees generally would have to work at lower rates at a virtual office than they would in a general office setup. This is primarily because employees don’t have to spend for travelling or to pay for their lunches. They can also finish their work according to their schedules and then relax. These definite benefits ultimately results in the business having lower payrolls for each month.
Having a low-cost expansion and no real long-term commitments, virtual offices are more likely than physical offices to grow and are exposed to comparatively low risk of failure or sales slump. A virtual business can easily expand into different areas, test new markets and thereby control investment risk greatly. Small businesses and start-ups using virtual office can also opt for co-working or shared services.
A virtual office allows several people to work who ideally would not have been able to do so. A young mother who has to stay at home to take care of her child or a 60-year-old man, who doesn’t wish to travel everyday to work, can easily work through a virtual office. The myriad flexibilities it provides and the chance to work from the comfortable environment of home results in happier and more loyal employees.
Virtual offices are a versatile, safe and secure way to progress your business. Follow the above tips wisely to get the best from your virtual office.