What is Virtual Bookkeeping : Everything You need to know

Virtual bookkeeping services are becoming more and more widespread in the world of small-business accounting, to the point where bookkeepers traveling to meet with customers is now becoming more of an alternative than the rule. In fact, I doubt I’ll ever see most of my clients face to face.

If you’re starting a business and need to employ a bookkeeper, one of the first considerations you’ll have to make is whether to hire on-site or virtual bookkeeping. Users experience on-site bookkeeping and have previously worked with nearby bookkeepers in person.

Using virtual accounting, on the other hand, helps your business by providing you with access to hundreds of accountants who can keep track of your books without ever having to set foot in your office.

In reality, small companies may save time and money by hiring virtual bookkeepers these days. How does virtual bookkeeping operate, and what does it entail? Let’s have a look.

Virtual Bookkeeping: What is it?

When a bookkeeper or accountant deals with a customer virtually, this is referred to as virtual bookkeeping or cloud accounting. Accounting software that allows you and your bookkeeper to share one account makes this feasible. 

Your bookkeeper may use a shared account to submit financial transactions, review and amend reports, balance accounts, and execute other essential accounting duties despite having to meet with you in real. To guarantee appropriate data exchange and interaction, the auditor and the business must use the same accounting software under this setup.

It is a comprehensive job to do virtual bookkeeping. Your virtual bookkeeper has a client list, but they’re always ready to answer inquiries or have a talk about your money. Their flexibility allows you to obtain the same flow of contact as a full-time bookkeeper at a fraction of the cost.

Also Read : New York’s Best Bookkeeping Services – Complete list

Working of Virtual Bookkeeping on your Device

best online bookkeeping services
Working of Virtual Bookkeeping

The firm offers the bookkeeper remote access to its server, software, and financial documents to allow virtual bookkeeping. The bookkeeper can connect to the firm’s protected site from his home computer, examines the records as the user were connected to an on-site corporate computer, then download and install the company’s bookkeeping software.

 If the bookkeeper works as an independent agent, she will bill the company for the services rendered, and the customer will pay according to the company’s contractor payment policy.

However, bookkeeping comes with challenges, but technology has made it an easy process. 

There are a few suggested applications, here are a few:

  • QuickBooks Online
  • Smartsheet
  • Zoom
  • Slack
  • G Suite (Google Docs)

Who is a good prospect for Virtual Bookkeeping?

Virtual accounting is a realistic solution to on-site virtual bookkeeping service for almost every company owner or investor, given the large pool of skilled bookkeepers available and the versatility many distant bookkeepers offer during their working hours. Your company is an excellent fit for virtual accounting if your workforce is comfortable working with internet tools.

Finding the perfect Bookkeeping Services instantly

How would you pick a bookkeeping service if you aren’t an accounting specialist?

What are the inquiries you must ask and the characteristics you should seek?

The first thing you should do is question the accounting software that they employ. If your virtual bookkeeping service uses QuickBooks and your data are kept on Xero, you may not want to continue the conversation.

Switching to a new system could be too much work.

Another concern is the cost. Make certain to learn how much you will be asked to pay. What kind of services and reports can you expect?

Also Read : A Complete Guide to Download and Install Turbo Tax Using License Key

Pricing and Charges of the facilities provided by Virtual Bookkeeping

Virtual bookkeepers frequently provide a free consultation to qualified leads in order to assess the workload, difficulties, and services before generating an estimate. Pricing for freelance virtual bookkeepers may vary based on their degree of expertise and skill. 

Based on skills and expertise, some of them may even charge a fixed hourly rate ranging from $25 to $200 per hour. Others may provide monthly service packages ranging from $250 to $1000, depending on their experience and the size of the job you wish to complete.

Because online bookkeeping services costs vary, you may always discuss payment conditions with them.  Some bookkeepers specialize in receivables and payables, while others choose cash-based virtual bookkeeping services, which include data entry,  bank reconciliation, and financial statements.

Few additional Bookkeeping Services 

The bench is a well-known bookkeeping service. The bench may also collaborate with your CPA to give the information needed for tax filing.

Another viable alternative is inDinero. This is an accounting software and services firm that can put up a custom package for you that includes tax filing. They may even assist you with bookkeeping and unpaid taxes from previous years.

If you own a restaurant, bookkeeper.com is a good option. Restaurant operators may make use of a special bookkeeping package offered by the corporation.

Kinds of Virtual Bookkeepers 

Virtual accounting alternatives are divided into two categories: freelancers and services.

  • Freelancers

virtual bookkeeping service
Freelancing Virtual Bookkeeping

Websites like Upwork are used to employ freelancers. They have a wide range of expertise and education because bookkeepers aren’t obliged by law to have certain certifications.

To examine your books and assist your virtual bookkeeper to classify any operations they’re unclear of, you’ll probably require off-the-shelf accounting software. Expect to interact mostly via email or messaging tools such as Slack.

The Top two freelance platforms are:

  • Fiver, Upwork, Freelancer.com, Peopleperhour, and Entertainment Careers.
  • Services

Virtual accounting services often provide you with a team of bookkeepers to help you with your bookkeeping.

Individual freelancers are less sophisticated than virtual services. You won’t have to worry about your bookkeeper going on vacation or getting ill because they normally have entire teams. 

Whether you have any issues or want to submit any papers, you may contact your bookkeeper personally.

5 Key Advantages of Bookkeeping Services Provided by a Virtual Assistant

The entry and outflow of cash or, more significantly, maintaining track of it are essential for a company’s success.

Here are some of the ways the best online bookkeeping services of an accounting virtual assistant may help your company:

online bookkeeping services

  • It is cost-effective

With entire in-house bookkeeping assistance, cutting costs is impossible. Also, completing financial tasks on your own does not save money. You won’t have time to concentrate on building your business if you spend a lot of time managing finances, which can cost a fortune in the long run.

While some accounting software is inexpensive, it generally includes crucial functions that are only available if you invest more money.

The majority of virtual assistants charge by the number of hours they work rather than by a set pay. As a result, hiring a virtual assistant may be the most premium option.

  • Enhance your financial situation 

Approximately 41{9c2025c5154a63d31f962cfe65d3ef6a6229783b0d476b05c3e2c719512dbfa3} of small company owners feel their accountants are trustworthy. They have faith in the accounting services supplied and rely solely on their VA’s advice.

It’s reassuring to know that someone trustworthy is looking after your money. That someone,’ however, cannot be just anyone.

You’ll require a reliable and knowledgeable specialist, such as a virtual bookkeeping assistant!

A virtual bookkeeping assistant helps to tax overdrafts and other transactions that must be completed.

Not only that but there’s more. They’ll keep track of bills, invoices, credit cards, bank transactions, and other financial matters.

  • No flaws in the working of the finances

The only way to manage finances is to keep a record of input and circulation of funds in a systematic and orderly manner. As a result, you’ll need someone to organize and display the data as needed.

Virtual analysis assistance will keep your economic data structured by documenting and tracking daily cash flow and other details so that you may access it at any time.

Users might be able to assess your finances and have a better understanding of your firm after it’s been organized. This information will assist you in making the best company judgments.

  • More useful productivity 

Hiring someone with skill and years of expertise to perform the task is a simple method to boost efficiency.

The majority of bookkeeping virtual assistants have unique talents and are familiar with the secrets of the trade for effective accounting and financial management.

Furthermore, qualified bookkeepers are hired through freelance platforms and agencies. They are evaluated by tests and then put through different teaching techniques.

Final Word!

As someone who works in the cloud accounting industry, I can tell you that many virtual bookkeeping services do not adhere to the recommended practices summarized above. 

Finally, your virtual bookkeeper should be a partner who can assist you in growing your business on a budget. As you look for the best virtual bookkeeper for your small business, keep this in mind. We hope that you like the information provided by us. For more such posts keep yourself tagged to our website.